Quick Summary:
- LDW/CDW often covers accidental damage, but exclusions may limit vandalism.
- Hit-and-run damage may need a police report and prompt notification.
- Check whether “theft and vandalism” are included or separately priced.
- Before signing, confirm deductibles, excluded parts, and reporting deadlines.
At US car hire pick-up, “LDW” (Loss Damage Waiver) and “CDW” (Collision Damage Waiver) can sound like a blanket safety net. In reality, whether vandalism or hit-and-run damage is covered can depend on the exact waiver wording, local state rules, and what the rental company requires you to do after an incident. In California, where parking lots, street parking, and busy freeways are everyday realities, it is worth understanding the typical patterns before you sign.
This guide explains what LDW/CDW usually covers, what it commonly excludes, and the specific phrases to look for on the rental agreement and at the counter so you can make an informed choice.
If you are comparing options across the state, you may see different inclusions depending on pick-up point and partner, for example car hire at San Francisco Airport (SFO), car hire in San Diego (SAN), or car hire at San Jose (SJC). The key is not the airport, it is the paperwork.
LDW vs CDW, what they are and what they are not
In the US, LDW/CDW is usually a waiver, not an insurance policy you own. If you comply with the agreement, the rental company waives some or all of its right to charge you for damage to the rental vehicle. That distinction matters because waiver benefits are tied to conditions, exclusions, and compliance steps.
As a general pattern:
CDW often focuses on collision-related damage, including single-vehicle accidents.
LDW often combines collision damage and theft-related loss, but the exact scope varies by company.
Some suppliers bundle theft protection (TP) separately, or include it within LDW. Vandalism may be treated as part of theft protection, treated as “malicious damage”, or treated as a separate exclusion that only becomes covered if a police report is produced.
Does LDW/CDW typically cover vandalism?
Vandalism usually means intentional damage by a third party, such as keyed paintwork, smashed windows, or a dent from someone deliberately kicking a door. Whether LDW/CDW covers it comes down to how the supplier categorises it.
Common outcomes you will see in US car hire terms include:
Often covered under LDW, if vandalism is not excluded. Many agreements treat vandalism as “damage to the vehicle” and it falls under the waiver, subject to deductible, excluded parts, and compliance steps.
Covered only if reported properly. Some suppliers require a police report or incident report for vandalism. If you cannot provide it, the waiver may not apply, even if you paid for it.
Excluded if it involves “criminal activity” without documentation. The language can be subtle. You may see wording requiring “proof of loss”, “police report”, or “report to authorities” for vandalism, theft, and other third-party events.
Not covered if it is treated as negligence. If vandalism follows leaving keys in the car, leaving the vehicle unlocked, or parking in violation of the contract (for example, in prohibited areas), the supplier may argue you breached the agreement and invalidate the waiver.
Practical takeaway: do not assume vandalism is always included just because you see LDW/CDW on a quote. Look for explicit mention of “vandalism” or “malicious mischief”, or confirmation that “theft protection” includes vandalism-related damage.
Does LDW/CDW typically cover hit-and-run damage?
Hit-and-run damage usually refers to another driver damaging the parked rental, or a collision where the other party leaves without providing details. In California cities and beach areas, this tends to occur in car parks, on kerbsides, and during overnight street parking.
LDW/CDW often covers hit-and-run damage as “damage to the vehicle”, but with conditions. The most important conditions are usually procedural:
Prompt reporting. You may be required to notify the rental company immediately or within a short time window. Some agreements specify “as soon as practicable”. Others specify a number of hours.
Police report requirement. Many suppliers treat hit-and-run as an incident that must be reported to the police. If you skip this step, the waiver may be reduced or denied.
Accurate incident details. You may need to provide time, location, photos, and a description. If the story appears inconsistent, the supplier may investigate further before applying the waiver.
Because hit-and-run often involves unknown third parties, the rental company cannot easily recover costs from another insurer. That is why the documentation requirements can be stricter than for an at-fault accident where details are exchanged.
What is “covered”, the deductible, and the parts that still cost you
Even when vandalism or hit-and-run is covered, coverage does not always mean “free”. Most waivers come with one or more of the following:
Deductible (excess). You may still pay the first portion of damage. The agreement should show a maximum amount.
Excluded vehicle parts. Windscreens, glass, tyres, wheels, underbody, and roof are common exclusions or limited-coverage items. If a vandal smashes a window, or a hit-and-run damages a wheel, you need to see if those items are carved out.
Fees beyond the repair. Depending on contract wording and local practice, you might see claims for towing, storage, administrative fees, and loss of use (the income the car could have earned while off the road). Some waivers limit these add-ons, others do not. If you are relying on LDW/CDW to protect you, check whether “loss of use” is waived or still chargeable.
Immobilisation and key issues. If vandalism leads to lost keys or a stolen key set, key replacement may be excluded even when body damage is waived.
These differences are why it is smart to read the “Exclusions” section and not just the headline product name. Two suppliers can both call it LDW and deliver very different outcomes.
Wording to look for at pick-up before you sign
Rental agreements can be dense, but a few specific phrases are high-value. At the counter, look for and ask about:
“Vandalism” or “malicious mischief”. If it is explicitly included, that is reassuring. If it is explicitly excluded, you know where you stand.
“Theft protection (TP)” and whether it includes vandalism. Some suppliers group vandalism with theft-related events.
“Police report required”. If the waiver says a police report is mandatory for theft, vandalism, or hit-and-run, treat it as non-negotiable.
“You must report within [time]”. Reporting deadlines can make or break a claim.
“Excluded parts: glass, tyres, wheels, undercarriage, roof”. These are frequent friction points for claims after parking incidents.
“Loss of use” and “diminution of value”. If you are trying to avoid surprise post-rental charges, see whether the waiver addresses these.
“Unauthorised use” and prohibited areas. If you breach the terms, the waiver may be void. This can matter if you take the vehicle off-road, onto beaches, or into restricted roads, even briefly.
What to do immediately if vandalism or a hit-and-run happens
The steps below are common best practice for US car hire incidents, and they also align with typical waiver requirements:
1) Document the scene. Take clear photos of all damage, the surrounding area, and any nearby vehicles or objects. Include wide shots and close-ups.
2) Report promptly to the rental company. Use the emergency or roadside number provided in your agreement. Ask for an incident reference number.
3) File a police report when required or sensible. For hit-and-run and vandalism, a police report often strengthens your position, even if the officer can only take an informational report. Keep the report number and any paperwork.
4) Do not authorise repairs yourself. Unless the rental company instructs you, avoid third-party repairs that could complicate the claim.
5) Keep all receipts and notes. Towing, taxis, or temporary fixes may be relevant later.
If you are in a high-traffic area like Los Angeles, your supplier details may vary by partner, such as Dollar car hire in California (LAX) or Payless car rental in California (LAX). Regardless, the same principle applies: comply with the agreement steps so any LDW/CDW you purchased can work as intended.
California context, parking and risk hot spots
California is not uniquely risky, but it does have a mix of dense urban parking, tourist-heavy coastal areas, and long-distance driving that increases exposure. Vandalism tends to happen where cars are left unattended for longer periods, while hit-and-run damage is common in tight car parks and kerbside spaces.
Practical risk reduction steps that also help with later claims include choosing well-lit parking, avoiding narrow kerbside spots where passing traffic clips mirrors, and doing a quick walkaround when you return to the car. If you notice fresh damage early, you can capture clearer photos and provide more accurate times and locations in a report.
Common misunderstandings that lead to unexpected charges
“LDW means zero cost no matter what.” Not always. Deductibles, excluded parts, and reporting conditions still apply.
“If someone else did it, I cannot be charged.” Rental companies typically charge the renter first, then pursue recovery if possible. Your waiver is what protects you, provided you comply.
“A police report is optional.” In many contracts, it is a condition. For vandalism and hit-and-run, assume it is required unless the agreement clearly says otherwise.
“Damage on the roof or underbody is minor.” These areas are commonly excluded. Even small marks can be expensive to assess.
“Pre-existing damage is obvious.” If it is not documented at pick-up, it can become your problem later. Always ensure the inspection record matches what you see.
How to check coverage without getting lost in jargon
At pick-up, you can keep it simple and still be precise. Ask the agent to point out, in writing, where the agreement states whether vandalism is covered under the waiver you have. Then confirm whether a hit-and-run requires a police report, and whether glass and wheels are included.
If you prefer to decide in advance, read the product description for the rate you selected, then compare it with the rental agreement at the counter. If anything conflicts, the signed agreement usually governs. The goal is clarity before you drive away.
FAQ
Is vandalism usually covered by LDW/CDW on US car hire? Often it is, but not always. Some agreements include vandalism under LDW, others require a police report, and some exclude malicious damage unless a specific option is included.
If my rental is hit in a car park and the other driver leaves, am I liable? You can be, because the rental company generally charges the renter for vehicle damage. LDW/CDW may reduce or remove your responsibility, but you usually must report promptly and may need a police report.
What wording should I look for to confirm hit-and-run coverage? Look for statements that LDW/CDW applies to “damage to the vehicle” plus any conditions, especially “police report required”, “prompt notification”, deductible amounts, and excluded parts like wheels or glass.
Does LDW/CDW cover broken windows from vandalism?Sometimes, but glass is commonly excluded or limited. Check the exclusions for “glass”, “windscreen”, or “windows”, and confirm whether an added glass coverage applies.
What should I do at pick-up to avoid disputes later?Do a thorough walkaround, photograph existing marks, ensure the inspection sheet matches the car, and ask for the waiver terms in writing, particularly vandalism, hit-and-run, deductible, and reporting requirements.
