Quick Summary:
- LDW commonly includes theft alongside damage cover, CDW may not.
- Both can reduce your liability, but exclusions still apply in Florida.
- Always check whether an excess remains, and how much it is.
- Card benefits and third party policies can conflict with rental terms.
When you arrange car hire in Florida, you will quickly see two similar sounding options, LDW (Loss Damage Waiver) and CDW (Collision Damage Waiver). They are often discussed as if they are interchangeable, but they are not always the same product. In practical terms, the difference comes down to what events are waived, how theft is treated, and what exclusions can bring the charges back to you.
This matters because Florida driving brings a mix of conditions, busy multi lane roads around Miami and Orlando, intense rainstorms, tight parking, and a high volume of hire cars. Understanding the wording before you pick up the keys helps you compare like with like and avoid surprises at return.
What CDW and LDW actually are in Florida
First, CDW and LDW are typically waivers, not traditional insurance policies. That means you are not buying an insurance contract from an insurer, you are paying the rental company to waive (give up) some or all of its right to charge you for certain types of loss, as long as you follow the terms of the rental agreement.
In Florida, the exact labels and coverage can vary by rental brand, supplier, and booking channel. Some companies use CDW, some use LDW, and some use both with slightly different inclusions. The only safe approach is to read the inclusions and exclusions shown on your voucher and at the counter, rather than relying on the acronym alone.
If you are comparing coverage terminology across destinations, it can help to see how policies are presented on different airport pages, such as Tampa Airport car rental, where travellers often look for clarity on what is included and what is optional.
CDW in plain English
CDW usually refers to a waiver that limits what you owe if the hire car is damaged in a collision, scrape, impact, or similar incident. Think of it as collision related damage to the vehicle itself, not injuries or damage to other people’s property.
CDW commonly applies to the bodywork and can also apply to mechanical damage caused by an accident. However, CDW often has important limitations:
Theft may not be included. In some cases theft is dealt with under a separate waiver, sometimes called Theft Protection (TP). In other cases, theft is bundled into LDW instead.
An excess may remain. CDW can reduce your liability but still leave you with an excess (sometimes called deductible). If the excess is $500 and the repair is $1,200, you may pay $500 and the waiver covers the remainder.
Exclusions can reinstate full liability. Common examples include driving under the influence, unauthorised drivers, off road use, or breaking key rental conditions.
LDW in plain English
LDW typically goes a step further. It often covers damage to the vehicle and also loss, which can include theft of the vehicle, attempted theft damage, or total loss scenarios. In many Florida car hire offers, LDW is closer to “damage plus theft waiver” than CDW alone.
That said, LDW is still a waiver with rules. Even when LDW is described as “full cover”, it may still have exclusions and may still involve an excess. You also need to understand what counts as “loss”. For instance, losing the keys, misfuelling, or interior damage may not be treated the same way as collision damage.
If you have ever compared how different US locations display cover options, you may have noticed similar terminology on large hub pages like Enterprise car rental New Jersey EWR, which can be useful for recognising that the US market often relies on waiver language rather than insurance language.
The key difference, theft and “loss”
The simplest distinction to remember for Florida is this: CDW focuses on collision damage, LDW often includes collision damage plus theft and loss. If theft is a concern where you are staying, you should check whether your chosen cover includes theft of the vehicle, attempted theft damage, and theft related fees.
Florida is generally safe for visitors, but tourist areas still see opportunistic theft. Theft can also include situations like a stolen vehicle from a hotel car park, or carjacking. If your cover is only CDW without theft protection, you might still be liable for the vehicle’s value, plus additional costs.
What neither waiver usually covers
Whether you choose CDW or LDW, most Florida rental agreements keep a list of items that remain your responsibility. These vary, but common exclusions and chargeable items include:
Tyres and wheels, including punctures, rim scrapes, and wheel covers.
Glass, including windscreen chips and cracks.
Undercarriage and roof damage, which can happen with kerbs, parking garages, or flooding.
Interior damage, such as stains, burns, or pet hair, depending on rules.
Loss of use and administrative fees, which may be charged while the car is being repaired.
Towing and roadside costs in certain situations, especially if caused by negligence.
Because Florida weather can change quickly, note that water damage and flooding are sometimes treated harshly. If you drive into deep standing water and the engine is damaged, the company may argue it was avoidable and therefore excluded.
How excess works, and why it matters more than the acronym
The excess is the amount you may pay towards a claim even when CDW or LDW applies. Two rentals can both say “LDW included” but one may have a $0 excess and another may leave a sizeable excess. That is why, when comparing car hire in Florida, the excess figure and exclusions usually matter more than whether the product is labelled CDW or LDW.
It is also worth checking whether the excess is per incident. Two separate scrapes on different days can sometimes be treated as two claims, potentially doubling what you owe.
Credit cards and travel insurance, how they interact with CDW and LDW
Many travellers from the UK have a credit card that advertises rental car cover, or a travel insurance policy with a car hire excess add on. These can be useful, but they do not automatically replace CDW or LDW.
Here is the common mismatch: the rental company may still require you to accept its waiver, or it may allow you to decline but then hold a larger deposit and leave you fully liable under the agreement. Your card or insurer may reimburse you later, but you may need to pay upfront first.
Also, card benefits often have conditions, such as paying for the rental with that card, declining the rental company waiver, or limiting coverage to certain vehicle classes. If you accept LDW at the counter, some card policies reduce or remove their benefit.
If you are weighing options for different US airports, you might notice similar questions come up on pages like car hire at Denver Airport, even though the driving conditions are different. The principles of waivers, deposits, and reimbursement are broadly consistent.
Florida specific scenarios to think about
Parking in busy areas. Door dings, scraped bumpers, and kerbed wheels are common in tight car parks. CDW or LDW may help with body damage, but wheels can be excluded.
Storm season. In heavy rain, visibility drops and standing water appears quickly. Damage related to flooding may be excluded if the rental company deems it avoidable.
Sunshine State road trips. If you plan to drive long distances, ask yourself about windscreen chips and tyres. These are frequently outside CDW and LDW, unless there is a specific additional product or local inclusion.
How to check what your Florida car hire includes, without jargon
Before you collect the vehicle, try this simple checklist:
1) Identify what is waived. Look for explicit mention of collision damage, theft, vandalism, and total loss.
2) Find the excess. Confirm the exact amount and whether it is per incident.
3) Read exclusions. Pay attention to alcohol, unauthorised drivers, road types, and key handling.
4) Ask about wheels, glass, and underbody. If they are excluded, decide if you can accept that risk.
5) Confirm deposit rules. Deposits can be higher when declining waivers, even if you have third party cover.
Being methodical is more useful than debating which acronym is “better”. The best option is the one whose written terms match your risk tolerance and trip plans.
Does “full cover” mean zero cost if something happens?
Not necessarily. Even when LDW is described in marketing language as comprehensive, there may be costs that sit outside the waiver, such as administrative fees, loss of use, or excluded parts of the vehicle. There can also be costs that arise from a breach of the agreement, such as leaving the keys in the car, using an unauthorised driver, or failing to report an incident correctly.
This is why it is sensible to keep photos of the vehicle at pick up and drop off, report damage promptly, and keep any police report reference if theft or vandalism occurs.
Choosing between LDW and CDW for Florida travel
If you are presented with both options, the decision is usually about theft and the breadth of protection. CDW can be adequate if it clearly fits your needs and you are comfortable with how theft is handled, either because theft protection is included separately or because you have another robust solution that the rental company accepts.
LDW is often the simpler choice to understand because it commonly bundles the major vehicle risks together, but you still need to confirm the excess and what is excluded.
Even if Florida is your focus, it can help to see how the same suppliers describe waivers in other markets. For example, car hire in San Antonio SAT may present similar waiver language, reminding you to focus on the written inclusions, not the label.
FAQ
Is LDW the same as CDW in Florida? Not always. CDW usually addresses collision damage, while LDW often includes collision damage plus theft or total loss, depending on the rental company terms.
Does CDW in Florida include theft of the hire car? Often it does not. Theft may be covered under a separate theft protection product, or included within LDW, so you should confirm the wording on your agreement.
If I have LDW, can I still be charged anything? Yes. You may still pay an excess, and exclusions can apply. Items like tyres, wheels, glass, underbody damage, or administrative fees may fall outside the waiver.
Can my UK credit card replace LDW or CDW in Florida? Sometimes it can, but many card benefits reimburse you after you pay, and rental companies may require higher deposits if you decline their waiver. Check both the card terms and the rental agreement.
What should I check at the counter to avoid surprises? Confirm whether theft is included, the exact excess amount, excluded parts like wheels or glass, and what happens if an incident is not reported correctly or an unauthorised driver uses the car.
