Quick Summary:
- CDW/LDW limits damage costs, but an excess usually still applies.
- SCDW can reduce the excess, but exclusions still matter.
- Excess is your maximum payable amount per incident, not a deposit.
- Compare cover by reading inclusions and exclusions, not just price.
US car hire quotes can look simple, until you reach the counter and hear a fast pitch about “full cover”. The confusion usually comes from three terms that are often mixed together: CDW/LDW, SCDW, and excess. They are related, but they are not the same thing. Understanding the difference helps you choose cover confidently before pick up, and compare like with like across suppliers.
In United Estates, most car hire pricing is built around waivers rather than traditional “insurance included” wording. A waiver is the supplier agreeing to waive, or limit, what they will charge you for vehicle damage or loss, as long as you follow the rental agreement. The waiver can still leave you with an excess, and it can still exclude certain damage types.
If you are comparing options on Hola Car Rentals, start with the basics and then work into the details for the vehicle class and provider you are considering. For general market context, see car hire in the United States and how typical inclusions are displayed.
CDW and LDW, what they are and why the names differ
CDW stands for Collision Damage Waiver. LDW stands for Loss Damage Waiver. In practice, suppliers often use them interchangeably on car hire quotes, but there is a nuance in the wording.
CDW usually refers to damage to the rental vehicle from a collision, impact, or accident. LDW often bundles collision damage and theft or loss into one waiver. Many US providers label the same product as LDW, even when customers casually say CDW. When you see CDW/LDW on a quote, treat it as “damage waiver coverage” and then check exactly what it covers and what it excludes.
What CDW/LDW normally does is limit the supplier’s right to charge you the full cost of repairs or replacement. Instead, your liability is capped, most commonly at the excess amount shown in the quote. This is why CDW/LDW is not the same thing as “zero cost if anything happens”.
Another key point: CDW/LDW typically covers the vehicle itself, not injuries, not damage to other vehicles, and not third party property. Those are separate topics, and they may be handled by liability cover, your own motor policy, or a credit card benefit. The waiver you are being sold at the counter is usually about the rental car’s physical damage exposure.
What SCDW means, and what it changes
SCDW is commonly used to mean Super Collision Damage Waiver. Think of it as an upgrade to the standard CDW/LDW that reduces your financial exposure. In many cases, it reduces the excess from a higher amount down to a lower amount, sometimes even to zero. However, “super” does not automatically mean “everything covered”.
SCDW can also be offered under other brand names, but the idea is consistent: you pay more to reduce what you could pay if the vehicle is damaged or stolen. The important checks are:
1) The new excess amount. Do you go from a high excess to a low excess, or to zero? Quotes may show this as “excess” or “deductible”.
2) The exclusions that still apply. Even with SCDW, suppliers often exclude certain types of damage, or they apply special rules if you break the rental agreement.
3) Whether it is included, optional, or only sold at the counter. Some quotes include SCDW as part of a package. Others include only CDW/LDW and present SCDW as an upgrade when you collect the car.
If you are choosing between providers, it can help to compare the way different brands present the waivers. You can review supplier pages such as Avis car rental in the United States and Budget car rental in the United States to understand how cover options are commonly packaged and described.
Excess explained, what you can be charged, and when
Excess is the maximum amount you may have to pay towards damage or theft in a single incident, assuming the waiver applies and you have complied with the agreement. In US car hire quotes it is sometimes called a deductible. It is not the same thing as the deposit or security hold, although the deposit can be influenced by the cover you choose.
Here is how excess works in practical terms:
If the repair cost is lower than the excess, you may pay the lower repair cost.
If the repair cost is higher than the excess, you may pay up to the excess amount, and the waiver limits the rest.
If the waiver is voided, for example because of prohibited use, the supplier can pursue the full cost, not just the excess.
Excess is often charged per incident, not per rental. That matters if there are multiple unrelated damage events. It can also be applied to different categories, such as damage and theft, sometimes with separate excess amounts.
Common exclusions that can surprise renters
The biggest mistakes happen when renters assume that CDW/LDW or SCDW means every part of the car is protected in every situation. Most waivers have exclusions, and the details vary by supplier and location. Some of the most common exclusions or conditions include:
Tyres, windscreens, glass, roof and underbody. Many suppliers exclude these parts from the waiver, or apply special rules. A minor chip or kerb impact can still create a charge even when you have a strong waiver.
Negligence or breach of contract. If the damage occurs while breaking the agreement, the waiver may not apply. Examples include using the wrong fuel, driving off road, or allowing an unauthorised driver.
Keys and lockouts. Lost keys, damaged keys, or locksmith callouts are frequently excluded.
Administration fees and loss of use. Even when the waiver applies, there can be additional fees in some cases. The best approach is to read the terms for your specific quote so you know what can be added.
Because exclusions are specific to the rental terms, you should treat “super cover” as “reduced excess with conditions”, not as an absolute guarantee. This is also why comparing on price alone is risky.
Why counter staff pitch upgrades, and how to evaluate them calmly
Counter pitches often sound urgent because they are framed around worst case scenarios. The most useful way to evaluate an upgrade is to translate it into two numbers and one checklist.
Number one, the excess you have now. What is your current exposure if the car is damaged or stolen?
Number two, the excess after the upgrade. Does it drop to a level you are comfortable with, and is that reduction worth the extra daily cost?
Checklist, the exclusions you care about. If you are worried about motorway stone chips, check glass. If you are road tripping through remote areas, check tyres and underbody. If you plan to share driving, check authorised drivers.
It can also help to pick the vehicle type first, then examine cover. Larger vehicles can have different repair costs, and therefore a high excess can feel more uncomfortable. If you are considering bigger options, browse minivan hire in the United States to understand typical categories and what to look for when comparing protection.
How to compare US car hire quotes on a like for like basis
To compare quotes properly, you need to compare the waiver level, the excess, and the rules, not only the headline total. Use this simple approach:
Step 1, confirm what is included in the base price. Is CDW/LDW included? Is SCDW included? Are there any notes about deductible levels?
Step 2, find the excess amount in writing. If the quote shows a range, look for the exact figure for that location and car group.
Step 3, scan the exclusions and key conditions. Focus on the items most likely to affect you: additional drivers, age rules, where you can drive, and what happens if you lose keys or damage glass.
Step 4, check the deposit rules. Deposits are separate from excess, but they affect how much credit limit you need available.
Step 5, compare the upgrade cost to the risk reduction. If SCDW reduces the excess by a large amount, it may be worth it for peace of mind. If it only reduces it slightly, you may decide it is not good value.
When you are ready to compare providers for your trip in United Estates, start from a broad listing such as car rental in the United States, then drill into the specific quote’s inclusions and excess.
A quick scenario to make the differences tangible
Imagine your quote includes CDW/LDW with a stated excess. In a car park, you scrape a pillar and the repair bill is higher than the excess. You would typically pay up to the excess, and the waiver covers the remainder, provided no exclusions apply.
If you instead have SCDW that reduces the excess to a lower figure, the same incident would usually mean you pay up to the lower excess. That is the core difference, SCDW changes your maximum out of pocket amount. The exclusions and the requirement to follow the rental agreement still matter either way.
And if the incident is excluded, for example damage to an excluded area, or a breach of terms, then neither CDW/LDW nor SCDW may protect you as expected. That is why reading the fine print is not optional, it is the real comparison tool.
FAQ
Is CDW/LDW the same as insurance on US car hire quotes?
Not exactly. CDW/LDW is a waiver that limits what the rental company can charge you for damage or loss of the rental car, usually subject to an excess and exclusions.
Does SCDW always mean zero excess?
No. SCDW often reduces the excess, but the reduced amount varies by supplier, location, and car group. You should check the quote and rental terms for the exact figure.
What is the difference between excess and a security deposit?
Excess is the maximum you may pay towards a covered damage or theft claim. A security deposit is a temporary hold on your card at pick up, and it can be higher than the excess.
If I have an excess, will I always be charged it?
No. If there is no damage, you pay nothing. If there is damage, you usually pay the repair cost up to the excess, assuming the waiver applies and no exclusions are triggered.
Can CDW/LDW be invalidated?
Yes. Breaching the rental agreement, such as using an unauthorised driver or driving in prohibited areas, can mean the waiver does not apply and you could be liable for more.
