Quick Summary:
- A CDW eligibility letter confirms your card covers rental damage in the USA.
- Some US rental desks require it before you can decline LDW.
- Request the letter from your card issuer 2 to 4 weeks pre-trip.
- Carry printed and digital copies, plus policy terms and claim contacts.
When you arrange car hire in the United States, you will usually be offered Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) at the counter. Many US-issued and some UK-issued credit cards include rental vehicle damage cover that can replace the need to buy the desk’s LDW or CDW. The complication is that not every rental location, agent, or brand will accept a simple statement like “my card covers it”. Some will ask for a specific document, commonly called a credit-card CDW letter of eligibility or “proof of coverage” letter.
If you are travelling to New York and collecting from an airport area such as Newark, it is worth preparing this letter before you fly. It can save time at the desk, reduce confusion about what you are declining, and help you make an informed choice about what protection you actually have.
What the ‘letter of eligibility’ is
A credit-card CDW letter of eligibility is a letter, typically issued by your card provider or the card benefit administrator, confirming the card’s rental vehicle damage benefit and its key conditions. In plain terms, it is a document that helps the rental desk verify whether your card’s cover can stand in place of the rental company’s LDW or CDW.
The letter commonly includes:
Your name, sometimes your card type, and confirmation the benefit applies to you as the cardholder.
Territory confirmation that cover applies in the United States (and sometimes specifically the state).
Coverage type, such as collision and theft damage to the rental vehicle, plus what is excluded.
Maximum benefit limit, which may be a fixed amount or “up to the vehicle value”.
Whether the cover is primary or secondary, which affects claims handling.
Eligible rental period, often a maximum number of consecutive days.
Vehicle type exclusions, for example luxury, exotic, trucks, vans, or certain SUVs.
Claim procedure, including the administrator phone number and documents required.
Not every issuer uses the same term. You might hear “coverage confirmation letter”, “letter of coverage”, “certificate of insurance”, or “benefits letter”. Rental staff may still call it a CDW letter even when your card benefit is described differently.
Why US rental desks ask for it
Rental agents are responsible for documenting that you knowingly declined their optional damage waiver and that you meet the requirements of any alternative cover you say you have. A letter helps them avoid disputes later, for example if a customer later argues they were wrongly allowed to decline or claims the desk misled them.
Requests for letters are more common when:
The card is issued outside the US, and the agent is unsure whether benefits apply domestically in the USA.
The card benefit is secondary, and the agent wants clarity that you understand it may not replace the waiver in all situations.
The rental class is higher, such as premium or specialty vehicles, where exclusions are common.
The location has strict audit rules, often at busy airport counters with standard scripts.
This is particularly relevant for travellers arranging car hire around the New York area where multiple states and airport jurisdictions overlap. For example, many travellers fly to New York but collect near Newark, New Jersey, and desk processes can be very formal. If you are comparing pickup options, see car hire at Newark Airport (EWR) for a sense of typical airport collection setups.
LDW vs CDW vs credit-card cover, the practical differences
Rental company LDW (sometimes labelled CDW/LDW together) is not always “insurance”. It is often a contractual waiver that reduces or removes your financial responsibility for damage or theft, provided you follow the rental agreement rules. It can be broad and easy to use because you deal directly with the rental company.
Credit-card rental damage cover is usually an insurance-style benefit. It may reimburse you after you pay the rental company, or it may pay the rental company directly, depending on whether it is primary or secondary and on local practice. It nearly always requires documentation, such as the rental agreement, incident report, photos, repair estimate, and sometimes proof of your personal motor insurance position.
Because of these differences, declining the desk waiver is a personal risk decision. The letter of eligibility does not guarantee the desk waiver is unnecessary. It simply helps the rental counter confirm that you have a plausible alternative, and it helps you understand the exact limits before you travel.
What “primary” and “secondary” cover means in the USA
In US car hire, the primary or secondary nature of credit-card CDW matters:
Primary means the card benefit is intended to pay first for covered damage to the rental vehicle, without involving your personal car insurance. This can reduce hassle and protect your personal policy from claims, where applicable.
Secondary means you may need to claim through any other insurance you have first, and the card benefit may cover remaining eligible amounts. For many visitors, “other insurance” might be a non-US policy or none at all, but you still need to follow the claims rules exactly.
Some desks ask for a letter specifically to confirm the cover is primary. Others may accept secondary cover but want proof that the card benefit exists.
How to get a CDW ‘letter of eligibility’ from your card issuer
The process differs by issuer, but these steps work for most travellers:
1) Identify the correct benefits administrator. Your bank may outsource claims and documentation to a specialist administrator. Look for “rental car insurance” or “car rental damage waiver” in your card benefits guide.
2) Request the right document name. Ask for a “letter of eligibility for rental car CDW/LDW in the United States” and specify you need it for a rental desk to allow you to decline the waiver.
3) Provide trip details when asked. Many administrators request travel dates, pickup country (USA), and sometimes the state. Some can tailor the letter to your rental period, which is useful if your benefit has a strict day limit.
4) Ask for clarity on exclusions. Specifically confirm any restrictions that frequently cause counter disputes, such as vehicle categories, maximum vehicle value, and whether vans are excluded. If you are considering a larger vehicle, it may be helpful to read about options like van hire in Newark (EWR) and then verify your card benefit’s vehicle-type eligibility before you commit.
5) Request it early. Aim for 2 to 4 weeks before travel, as some issuers post letters or take time to generate PDFs. If you are close to departure, ask if they can email a PDF and whether a digital copy is accepted.
6) Keep the benefits guide too. The letter often summarises coverage, but the benefit guide contains the full wording that may answer edge cases at the counter.
What to check on the letter before you travel
Before you rely on the letter for US car hire, verify it matches your situation:
Your name is correct and matches your driving licence and booking.
The USA is clearly covered. If the letter lists territories, confirm “United States” is included.
Rental period limits. Many benefits cover only a set number of consecutive days, and exceeding it can void cover for the whole rental or for days beyond the limit.
Vehicle exclusions. Common exclusions include exotic, high value, motorcycles, certain SUVs, trucks, and sometimes passenger vans. If you are renting from an airport serving New York, you might be offered a wide range of vehicles, so align your booking category with the card’s allowed categories.
Country of issue requirements. Some benefits require the entire rental to be paid with the eligible card, and you must decline the rental company’s CDW/LDW for the card benefit to activate.
Primary vs secondary is stated clearly, as this is a frequent desk question.
Contact details for the benefit administrator are present in case the desk wants to call.
At the desk in New York area, how to use the letter
Bring both printed and digital copies. Some counters will scan paperwork; others will simply note in the record that you presented proof. Hand the letter over when you say you want to decline LDW or CDW, and be ready to show that you paid for the rental with the same credit card.
If the agent is unsure, ask them to note on the rental agreement that you presented a coverage letter and declined the waiver. Stay calm and factual. If they still refuse to let you decline, your options may be to accept the waiver or choose a different provider and location. If you are researching providers at Newark, you can compare brand pages like Avis car rental at Newark (EWR) or Enterprise car rental in New Jersey (EWR) and then confirm desk policy expectations before arrival.
Common reasons a desk may still not accept it
Even with a letter, acceptance is not guaranteed. A desk may still insist on selling LDW or CDW if:
The letter is outdated, for example not current to your travel date.
The benefit wording is ambiguous or does not explicitly mention the USA.
The card benefit excludes the booked vehicle class.
The rental is not paid in full with the eligible card, or you plan to use a different card at the counter.
The letter is not in your name, such as relying on a partner’s card while you are the main renter.
The desk requires local insurance proof separate from damage waiver, as liability and damage are different topics.
Remember, the letter is about collision and theft damage to the rental vehicle, not about third-party liability. Liability requirements and what you need as a visitor can be separate from CDW or LDW decisions.
Tips to avoid counter surprises
Match renter, cardholder, and payment method. The person named on the rental should usually be the cardholder whose benefit is being used, and the same card should be used to pay.
Keep your rental duration within the covered limit. If you need a longer trip, ask your issuer if splitting rentals is allowed under the benefit rules.
Choose a vehicle category that is clearly eligible. If your letter or guide excludes certain classes, do not “upgrade” at the counter unless you confirm eligibility first.
Save all documents. If something happens, claims often require the rental agreement, damage report, police report where relevant, itemised repair invoice, and proof of payment with the eligible card.
Understand what you are declining. Declining LDW or CDW may increase your responsibility upfront, even if you expect reimbursement later through your card benefit.
FAQ
What exactly does a credit-card CDW eligibility letter prove? It confirms your card includes rental vehicle damage cover, where it applies, and key conditions like limits, exclusions, and whether cover is primary or secondary.
Will every US car hire desk accept the letter to decline LDW? No. Many will, but acceptance can vary by brand, location, agent training, and whether your vehicle class and payment method meet the benefit rules.
How far in advance should I request the letter? Request it 2 to 4 weeks before travel, as some issuers take time to generate or post documents, and you may need time to clarify exclusions.
Does the letter replace travel insurance or liability cover? No. It typically relates only to damage or theft of the rental vehicle, not third-party liability, injuries, or personal belongings, which may need separate cover.
What should I bring alongside the letter to the counter? Bring the card used to pay, your driving licence, the benefits guide if available, and a printed copy of the letter, plus a saved PDF on your phone.
