Quick Summary:
- Choose LDW/CDW first, then add SCDW to cut excess further.
- Check if tyres, glass, theft and underbody are included.
- Consider excess reimbursement when SCDW is pricey or unavailable.
- Verify deposit, claim process and proof needed before collecting keys.
If you are planning car hire in New York and want a low excess, the key is understanding what each protection product actually does. In US rental terms, “excess” is the amount you may still pay towards damage or theft even when you have cover. Some products reduce that excess to a small amount, others only reimburse you later, and some reduce the excess but leave important exclusions that can still cost you money.
This guide compares LDW/CDW, SCDW, and excess reimbursement so you can choose the combination that best minimises out-of-pocket risk. The right answer depends on where you are collecting, how much deposit you can tie up on a card, and whether you want the rental company to handle claims directly or are happy to pay first and claim back.
Start with the basics: what “excess” means in New York car hire
When you rent a vehicle, the supplier sets a damage liability amount. If the car is damaged or stolen, you can be charged up to that amount, plus admin fees, loss of use, and potentially towing or impound charges, depending on the agreement. In practice, “low excess” means you are trying to reduce both the maximum you could pay and the likelihood you must pay anything up front.
Also separate “excess” from the “deposit” (pre-authorisation) taken on your card at pick-up. Even with very low excess, many suppliers still block a deposit to cover fuel, tolls, tickets, and incidentals. So minimising out-of-pocket risk is about both the excess and the cashflow impact of deposits.
LDW/CDW: the foundation, but not always low excess
In New York, you will often see LDW (Loss Damage Waiver) and CDW (Collision Damage Waiver). They are similar in effect, a waiver is not always labelled as “insurance”, but it typically reduces what the supplier can charge you for damage or theft.
What it usually does: LDW/CDW can reduce or cap your liability for damage to the rental vehicle, subject to the rental agreement terms. In some cases it may be described as “included” or “optional” depending on the supplier, pick-up location, and the package you choose.
Why it may not give you a low excess: LDW/CDW can still leave an excess that is high enough to feel painful, especially if you are used to packages in other countries with near-zero excess. It can also exclude common damage areas such as glass, tyres, wheels, roof, underbody, or interior, which are frequently where real-world incidents occur in cities.
When LDW/CDW alone is enough: If the excess is already low and exclusions are limited, adding further protection may not be worth it. This is more likely if you have chosen a package designed for visitors that includes enhanced cover. If you are collecting from an airport, it is worth comparing your options across locations, for example starting with car hire at New York JFK versus collecting just across the river at Newark EWR, as protection bundles and excess levels can differ by supplier and station.
SCDW: the usual route to genuinely low excess
SCDW (Super Collision Damage Waiver) is commonly an add-on that reduces the excess much further than standard LDW/CDW, sometimes to a very small amount. If your goal is low out-of-pocket risk with the least hassle, SCDW is often the most direct solution because it changes the supplier’s charging position at source.
What to check before buying SCDW:
1) The new excess amount. “Super” does not automatically mean “zero”. Confirm the exact figure, and whether it applies to damage, theft, or both.
2) Exclusions that still apply. Even with SCDW, the supplier may exclude tyres, glass, wheels, underbody, roof, and misfuelling. In New York, kerb damage to wheels and tyres is a common risk, as is glass damage from road debris.
3) Who administers it. If the product is a supplier waiver, your advantage is usually fewer upfront payments and simpler handling at the counter. That is a different experience to third-party reimbursement, discussed below.
4) Deposits and card requirements. Some suppliers reduce the deposit when SCDW is taken, but not always. A low excess can still come with a sizeable deposit block.
If you are comparing suppliers at Newark, you can also look at differences in how each brand packages waivers, for instance Avis car hire at Newark EWR compared with Dollar car hire at Newark EWR. The best choice for low excess is the one that combines a low liability figure with manageable exclusions and a deposit you can live with.
Excess reimbursement: lower long-term cost, but higher short-term exposure
Excess reimbursement (sometimes called excess refund cover) is different from SCDW. Instead of reducing what the rental company can charge you, it promises to reimburse you for charges you pay, up to a specified limit, if you make a valid claim. This can be attractive when SCDW is expensive, not available, or you are happy with an administrative claims process in exchange for potentially lower total cost.
Key trade-off: you may have to pay first. If the car is damaged, the supplier can charge your card up to the full excess (and sometimes related fees). You then claim reimbursement later, providing documents such as the rental agreement, incident report, repair invoice, and proof of payment.
Practical implications for New York travellers:
Cashflow and credit limit. Your ability to absorb a large charge matters more than the final outcome. Even a successful claim can take time.
Documentation burden. You must be prepared to collect paperwork. At busy stations, you may need to proactively request a final invoice, a damage report, and proof of charges.
Coverage gaps. Reimbursement products often exclude the same tricky items, or impose special limits for glass and tyres. Always check whether they cover admin fees, loss of use, towing, and storage, as those can be material in the US.
Excess reimbursement can still be a good solution for low out-of-pocket risk if your main worry is the ultimate cost, not the short-term card impact. If, however, your priority is to avoid large unexpected charges in the first place, SCDW is usually the better fit because it reduces liability at source.
A simple decision framework for low excess car hire in New York
Use this step-by-step approach when comparing options.
Step 1: Confirm what is already included. Many travellers assume protection is the same across all rentals, but inclusions can differ by supplier and location. Identify whether LDW/CDW is included and what the excess is.
Step 2: Decide whether you need “low excess” or “low hassle”. If you want low hassle, prioritise SCDW from the supplier, plus any add-ons that plug common exclusions. If you are comfortable paying first and claiming later, reimbursement may be fine.
Step 3: Audit the exclusions that matter in New York. For city driving and parking, wheels, tyres, and glass are frequent. For longer trips, underbody and animal collisions can matter. Choose the option that best covers the likely risks for your itinerary.
Step 4: Check deposit and payment rules. A low excess can still come with a deposit that ties up funds. Make sure the card type and name requirements match what you will present at the desk.
Step 5: Consider where you are collecting. Pick-up points around New York can have different terms and pricing. If you are flying into Newark, browsing car rental near New Jersey EWR can help you compare like-for-like packages and see which excess levels suit your risk tolerance.
What else can still cost you money even with low excess?
Even with excellent damage protection, some costs sit outside the vehicle damage excess. Knowing these helps you avoid surprises and keeps your out-of-pocket risk genuinely low.
Tolls and toll admin fees. New York and surrounding areas use toll roads, bridges, and tunnels. Rental toll programmes can add daily charges plus the tolls themselves. This is separate from damage excess.
Traffic and parking violations. Tickets are usually your responsibility, and suppliers often add admin fees to the fine amount.
Misfuelling, lost keys, and interior damage. These can be excluded from waivers or handled as separate charges.
Unauthorised use. Driving outside permitted areas, allowing an unlisted driver to drive, or using the vehicle in prohibited ways can void waivers. Make sure all intended drivers are added, and confirm any restrictions relevant to your plans.
Counter offers: how to evaluate what you are being sold
At pick-up, you may be offered upgraded protection. The best way to keep control is to ask for specifics rather than relying on labels.
Ask two direct questions: “What is the excess with this option?” and “What does it exclude, especially tyres, glass, wheels, roof and underbody?” If the staff member cannot provide a clear answer, request the written terms. The option that delivers low excess on paper is the one that matters, not the one that sounds comprehensive.
Also ask whether the excess applies per incident. If it does, multiple small incidents could mean multiple excess charges. SCDW may lower the per-incident cost, but you still want clarity.
Recommended combinations for minimising out-of-pocket risk
There is no single best insurance choice for every traveller, but these combinations tend to match common priorities.
Option A: Lowest hassle, usually higher price. Choose LDW/CDW plus SCDW from the supplier so the excess is reduced at source. Add targeted cover if available for tyres and glass. This is often the closest experience to “low excess and minimal claims admin”.
Option B: Balanced cost and protection. Use included LDW/CDW and add SCDW only if the excess is still high. If SCDW is not good value, consider reimbursement, but only if you can handle the deposit and possible charges temporarily.
Option C: Lowest upfront cost, highest cashflow risk. Rely on LDW/CDW and use excess reimbursement to protect against worst-case cost. This can work if you have a strong credit limit and are disciplined about collecting paperwork for claims.
FAQ
Is LDW/CDW the same as zero excess in New York? Not necessarily. LDW/CDW often reduces liability but can leave an excess, and it can exclude areas like glass, tyres, wheels, roof, or underbody. Always confirm the exact excess amount.
Does SCDW always reduce the excess to zero? No. SCDW usually lowers the excess a lot, but the remaining amount varies by supplier and location. Check whether the reduced excess applies to both damage and theft.
Will excess reimbursement stop the rental company charging my card? Typically no. Reimbursement products usually pay you back after you have been charged and you submit the required documents. This means you still need the credit limit to cover the supplier’s excess.
What should I look for in the small print to keep out-of-pocket costs low? Focus on exclusions (tyres, glass, wheels, underbody, roof), admin fees, loss of use, towing, and whether the excess applies per incident. Also check the deposit amount and card rules.
Does where I collect the car affect my excess options? Yes. Excess levels and waiver bundles can differ between stations and brands, including JFK and Newark. Compare the included cover and the cost to reduce excess before deciding.
