Loss Damage Waiver (LDW)
Definition - What does Loss Damage Waiver (LDW) mean?
A loss damage waiver refers to a specific release of liability which a person can buy when renting a vehicle. In general, the renter is released from liability for any damage to the car in exchange for a fee that is determined by the rental company. The purchase of a loss damage waiver is typically not mandatory.
Justipedia explains Loss Damage Waiver (LDW)
Although nearly every car rental service gives the renter a chance to sign and purchase a loss damage waiver, the terms and pricing are different depending on the specific rental company and sometimes the specific location. In general, loss damage waivers typically cover liability of a person in the car getting hurt and damage or theft of the car itself. In addition, the major credit card companies MasterCard, Visa, Discover, and American Express all offer coverage similar to that in a loss damage waiver if the rental is purchased with the card.