Quick Summary:
- Read the waiver exclusions for roof, underbody, tyres, wheels and glass.
- Confirm whether interior damage, smoke, spills and odours are excluded.
- Ask who counts as an authorised driver and how to add them.
- Check prohibited use, off-road, towing, keys, and claims reporting deadlines.
When you pick up a car hire in California, the part that most often causes surprises is not the daily rate. It is what the damage waiver does not cover. LDW (Loss Damage Waiver) and CDW (Collision Damage Waiver) are designed to reduce your financial responsibility if the rental car is damaged or stolen, but they nearly always come with exclusions. Those exclusions can mean you still pay for particular types of damage, plus fees, even if you thought you were “covered”.
This guide explains the most common LDW/CDW exclusions you should check before signing in California, and the exact questions to ask at the counter so you can make an informed decision. Terms vary by supplier and location, so use the questions below to confirm what applies to your specific agreement.
If you are comparing suppliers around major arrival points, you can review options such as car hire at Los Angeles LAX, car hire at San Diego Airport, car hire at Sacramento SMF, or SUV hire at San Francisco SFO, then confirm waiver wording at pick-up.
LDW vs CDW, and why exclusions matter
Rental companies use LDW and CDW differently, and sometimes the paperwork uses one term but describes the other. In practical terms, these waivers generally limit what you owe for damage to the vehicle, often up to a deductible (also called an excess). However, exclusions can put you back on the hook for the full cost of repairs, loss of use, towing, storage, and administrative fees.
In California, you will typically see a rental agreement plus a separate section for damage waivers, or a summary showing what is included and what is optional. The important part is the exclusions list, because that is where the most expensive misunderstandings sit.
Common exclusion: roof damage
Roof damage is a frequent exclusion or is treated as “non-collision” damage that the waiver does not cover. Think of low clearances in multi-storey car parks, drive-throughs, hotel porte-cochères, or loading bays. Even a light scrape can be costly because roof panels and paintwork are labour intensive.
Questions to ask before you sign:
“Is roof damage covered under the LDW/CDW on this contract, or excluded?”
“Does the exclusion apply to all overhead strikes, even at low speed?”
“If roof damage is excluded, what would I be charged, repairs only or also loss of use and fees?”
Common exclusion: underbody damage
Underbody damage is often excluded, especially if it results from rough roads, kerbs, debris, or driving outside paved surfaces. California has everything from well-maintained freeways to uneven rural roads and steep driveways. A scrape can damage exhaust components, suspension parts, or protective shields.
Questions to ask before you sign:
“Is undercarriage or underbody damage excluded from the waiver?”
“Does this include oil pan, catalytic converter, and suspension damage?”
“If I hit road debris on a paved highway, is that treated differently?”
Common exclusion: tyres, wheels, glass, and mirrors
Many waivers exclude tyres, wheels (including alloys), glass (windscreen and windows), and mirrors. These are among the most common real-world incidents: kerbing a wheel, a puncture from debris, or a stone chip that turns into a crack.
Questions to ask before you sign:
“Are tyres and wheels covered under LDW/CDW here, or excluded?”
“Is windscreen and other glass covered, including chips and cracks?”
“If a tyre is punctured, do you expect repair, replacement, or roadside assistance fees?”
Common exclusion: interior damage, smoking, spills, and odours
Interior damage is frequently excluded because it is harder to attribute to a single incident, and cleaning or replacement costs add up quickly. Spills can soak into seat foam, and burns can permanently damage upholstery. Smoking bans are also strict, with fixed fees that can be charged even without visible damage if odour removal is required.
Questions to ask before you sign:
“Does the waiver cover interior damage, including seats, dashboard, and trim?”
“What are the fees for smoking, ash, or odour removal, and are these ever waived?”
“If I return the car with a spill that needs cleaning, is that excluded regardless of LDW/CDW?”
Common exclusion: unauthorised drivers
One of the most expensive exclusions is when an unauthorised driver is behind the wheel at the time of an incident. If someone not listed on the agreement drives, the waiver may be void. That can mean you are liable for the full cost of the vehicle damage, and sometimes additional penalties.
California rules around spouses or domestic partners may affect how some companies handle additional drivers, but you should never assume. The safe approach is to add every potential driver before you leave the lot.
Questions to ask before you sign:
“Who is authorised to drive under this agreement, and who must be added?”
“If my partner drives for ten minutes and there is damage, does that void the waiver?”
“What is the process and cost to add an additional driver today?”
Common exclusion: prohibited use and off-road driving
Most rental agreements restrict use to normal, legal driving on maintained public roads. Off-road use, unpaved roads, beaches, dunes, or “trail access roads” can invalidate the waiver, even if you were driving carefully. This matters in California where scenic routes sometimes include gravel sections, and some attractions involve dirt access roads.
Questions to ask before you sign:
“What does this company define as off-road or unpaved road use?”
“If I drive a short gravel access road to a trailhead, is that prohibited?”
“If prohibited use occurs, is the entire waiver voided or only specific damage types?”
Common exclusion: towing, pushing, or carrying improper loads
Towing a trailer, towing another vehicle, or using the car to push anything is commonly prohibited unless explicitly permitted. Likewise, commercial use, delivery work, or carrying hazardous materials may be restricted. If a prohibited use is involved, the waiver may not apply.
Questions to ask before you sign:
“Is towing allowed with this vehicle, and if so, what equipment is approved?”
“Are there restrictions on commercial use or deliveries that affect waiver coverage?”
“If I violate a use restriction, does that remove LDW/CDW entirely?”
Common exclusion: keys, key fobs, and lockouts
Lost keys, stolen key fobs, and lockout incidents are often excluded. Modern fobs can be expensive, and some cars require programming. Even if LDW/CDW applies to vehicle damage, the agreement may still charge for replacement keys, locksmith services, and downtime.
Questions to ask before you sign:
“Are lost or damaged keys and key fobs excluded from the waiver?”
“If I lock the keys in the car, what are the callout fees and process?”
“Is roadside assistance included, and what does it cover?”
Common exclusion: negligence, illegal activity, or breach of contract
Waivers typically do not apply if damage occurs during illegal activity, reckless driving, driving under the influence, or other serious breaches. Even smaller breaches can matter, for example failing to report an incident on time, or continuing to drive after a warning light that leads to engine damage.
Questions to ask before you sign:
“What actions would void the waiver, and is there a clear list I can read?”
“If I get a dashboard warning and stop immediately, does that protect me from being blamed?”
“How quickly must I report an accident, theft, or vandalism?”
Claims process exclusions: reporting deadlines and documentation
Even when a waiver should apply, you can run into problems if the process is not followed. Some agreements require immediate reporting, a police report in certain cases, or specific documentation if there is theft or vandalism. If you do not comply, the waiver may be limited or denied.
Questions to ask before you sign:
“When do you require a police report, and for what types of incidents?”
“Who do I call first, the rental branch, roadside assistance, or emergency services?”
“What evidence do you need, photos, incident number, written statement?”
What to inspect before leaving the car park
Exclusions are only half the story. The other half is preventing disputes about whether damage was pre-existing. Before driving away, walk around the car and take time-stamped photos or video of all sides, including wheels, windscreen, roof line (as much as you can safely capture), and the interior. Make sure any scratches, dents, chips, and scuffs are marked on the condition report, and ask for a copy.
Also check the fuel policy and mileage terms, because fees for fuel or over-mileage are not waiver items. If you are picking up at a busy airport location, doing this calmly can save hours later.
A simple checklist of exact questions to ask at the counter
Use these verbatim questions to force clear answers:
“Please show me in the contract what LDW/CDW covers, and what it excludes.”
“What is the deductible or excess amount, and when would I pay it?”
“Are roof and underbody damage covered, and if not, what is my liability?”
“Are tyres, wheels, glass, and mirrors covered under this waiver?”
“Is interior damage covered, including spills, burns, and smoke odour fees?”
“Who is authorised to drive, and is any driver automatically included?”
“What counts as prohibited use, including gravel roads, beaches, or trail access roads?”
“Are lost keys, lockouts, and towing excluded, and what are the charges?”
“What are the reporting steps and deadlines if something happens?”
How to interpret the answers
If the staff member answers in general terms, ask them to point to the clause in the agreement. You are not being difficult, you are confirming the rules that control your liability. If roof, underbody, or wheels are excluded, be realistic about your trip plan. City driving and motorways may make those exclusions less likely to matter, while tight multi-storey parking, scenic detours, or mountain roads may increase the risk.
Finally, remember that credit card coverage and personal auto insurance may have their own exclusions and conditions, and they may require you to decline certain options or follow a claims process. The rental agreement is still the document that determines what the rental company charges you first, so it is essential to understand it before you sign.
FAQ
Is LDW/CDW the same as insurance for car hire in California? LDW/CDW is usually a contractual waiver that limits what you owe the rental company for damage or theft, subject to exclusions and a deductible. It is not the same as liability insurance, which covers injury or damage to others.
What exclusions cause the biggest unexpected bills? The most common costly exclusions are unauthorised drivers, roof or underbody damage, and tyres or wheels. Interior damage and smoking or odour fees also catch people out because they are often excluded.
If someone hits me and it is not my fault, can exclusions still apply? Yes. Even if you are not at fault, the rental company may still charge you initially, then reverse it depending on documentation and recovery. Reporting requirements and documentation, like incident details and photos, are critical.
Do I need to add every driver if we will “take turns” on the trip? Yes. If a driver is not authorised on the agreement, the waiver can be void if an incident occurs while they are driving. Add all drivers before leaving the pickup location.
What should I do immediately if the rental car is damaged? Move to safety, seek medical help if needed, then follow the contract steps. Notify the rental company promptly, take photos, and ask whether a police report is required for the situation.
