Quick Summary:
- LDW may limit damage costs, but you can still owe an excess.
- Excess reimbursement repays eligible charges after you pay the rental company.
- It may refund admin, towing, and loss-of-use fees, depending on terms.
- Check exclusions like tyres, glass, underbody damage, and contract breaches.
When you arrange car hire in Orlando, insurance wording can feel like a maze, especially around LDW and “excess reimbursement”. They are linked, but they are not the same product and they do not pay out in the same way. Understanding how they work together helps you avoid buying duplicate cover, or worse, assuming you are protected when a charge lands on your card.
In simple terms, LDW is usually the rental company’s damage waiver that reduces what you owe if the vehicle is damaged or stolen. Excess reimbursement is a separate policy that can repay certain amounts you were charged under the rental agreement, typically after you have already paid the rental company. The key is the order of events: with reimbursement cover, you usually pay first, then you claim it back.
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What LDW actually does on Orlando car hire
LDW stands for Loss Damage Waiver. In the US, it is commonly offered by rental companies as a waiver rather than an insurance policy you purchase independently. If LDW applies, the rental company agrees to waive, or limit, what you pay for damage to the rental vehicle or theft, subject to the rental agreement terms.
LDW can be included in your rate, offered as an optional extra at the counter, or bundled in a package you select when arranging your trip. What matters is what it leaves you responsible for. Depending on the specific contract, you may still face an “excess” (also called a deductible), plus fees such as damage administration, loss of use, towing, storage, or diminished value. In many real-world claims, those add-ons are where travellers feel surprised.
Even with LDW, you can lose coverage entirely if you breach the agreement, for example using the wrong fuel, allowing an unauthorised driver, driving off permitted roads, or failing to report an incident properly. If LDW is voided, the rental company may pursue the full cost of repairs and related charges.
What excess reimbursement insurance is and how it pairs with LDW
Excess reimbursement insurance is usually bought from a third-party insurer or broker. Its purpose is to repay you for covered charges that the rental company has charged you under the rental agreement, up to your policy limits. It does not typically deal with the rental company directly and it does not usually stop the rental company taking money from your card.
That is why it pairs naturally with LDW. LDW can reduce the main exposure, but it may still leave you with an excess and various fees. Excess reimbursement then steps in to refund those amounts, if they are covered by the policy wording.
Layer 1, LDW: sets the rental company’s rules for what you pay after damage or theft.
Layer 2, reimbursement cover: can repay what you were required to pay under Layer 1, provided the charge is eligible and you followed the claims process.
In Orlando car hire, this pairing can be useful because the rental company’s claims process is often fast. A pre-authorisation may be held at pick-up, and if damage occurs, charges can be deducted soon after the vehicle is returned. Reimbursement cover is designed for that reality, but you still need cashflow and documentation to claim back successfully.
What excess reimbursement usually repays
Policies differ, so you must read the schedule and the full terms, but many excess reimbursement products can repay some or all of the following, up to the policy limit.
The excess or deductible charged under LDW, including theft excess if applicable.
Damage administration fees the rental company applies for handling a claim.
Towing and recovery charges, if related to an insured incident and supported by receipts.
Loss of use charges, meaning the rental company’s claimed revenue loss while the vehicle is off the road.
Other contractually applied charges tied to damage, sometimes including storage or assessment fees.
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Common exclusions to check before you buy cover
Excess reimbursement is not a blanket “anything that happens” policy. The exclusions are as important as the headline limit. The following are common areas to verify in writing before you rely on cover.
Tyres, wheels, and glass: Some policies exclude tyres, windscreen, windows, mirrors, and wheels, or only cover them if an additional option is purchased.
Roof and underbody damage: These are frequently excluded or only covered with strict conditions.
Negligence and contract breaches: If you break the rental agreement, many reimbursement policies will not pay. Examples include off-road driving, unauthorised drivers, driving under the influence, or failing to secure the vehicle.
Keys, locks, and roadside call-outs: Lost keys and locksmith charges are often excluded or capped.
Administration without evidence: If you cannot provide a damage report, invoice, photos, or a final receipt, the insurer may decline.
How the claims process typically works
Most reimbursement claims follow a predictable pattern. Knowing it upfront makes it easier to protect yourself at pick-up and drop-off.
1) You pay or are charged by the rental company. This may be an excess deduction, a post-rental charge, or a card payment demanded at the desk.
2) You collect evidence. Keep the rental agreement, check-in and check-out reports, photos, police report if required, itemised invoices, and the card statement showing the final charged amount.
3) You submit a claim to the insurer. You provide documents, explain the incident, and confirm you complied with the rental conditions.
4) The insurer reimburses eligible amounts. Payment is made to you, not to the rental company, and only for covered items up to the policy limits.
Timing varies, but the most common reason for delay is missing paperwork, especially if you did not request an itemised invoice.
Do you need excess reimbursement if you have LDW?
It depends on what LDW leaves you exposed to and your comfort with risk and cashflow. If your LDW is truly zero excess and covers the usual fees, reimbursement cover might add limited value. If your LDW has a sizeable deductible or you are concerned about add-on charges, reimbursement insurance can make costs more predictable, provided you can front the money and you are happy with the exclusions.
The most important step is aligning expectations. LDW controls what the rental company can charge you. Excess reimbursement can help you get some of that money back, but only if the charge falls within the insurer’s definition of a covered cost and you can prove it.
FAQ
Q: If I have LDW on car hire in Orlando, will excess reimbursement stop the rental company charging my card?
A: Usually no. Reimbursement policies typically refund you after the rental company has charged you and you submit a successful claim.
Q: Does excess reimbursement cover damage if LDW is voided?
A: Often it will not. If the incident involves a breach of the rental agreement or illegal use, many policies exclude the claim, even if the rental company charges you.
Q: What documents are normally required for an excess reimbursement claim?
A: Common requirements include the rental agreement, condition reports, itemised invoice, proof of payment, photos, and sometimes a police report reference.
Q: Are tyres, wheels, and windscreen damage covered by excess reimbursement?
A: Sometimes, but not always. These items are frequently excluded or only covered with specific add-ons, so check the policy wording before purchase.
Q: Can excess reimbursement repay loss-of-use and admin fees in Orlando car hire claims?
A: It can, but coverage varies by insurer. Some reimburse both, some cap them, and others exclude loss of use unless strict evidence is provided.
