loss damage waiver (LDW)
An agreement with an auto rental company in which the renter
is released from liability for physical damage to the vehicle in
exchange for a fee, subject to the terms of the rental agreement
or a state statute if one exists. It is not insurance but a contractual
obligation subject to many restrictions. In some contracts, the
renter may be able to choose either a full damage waiver or one
that holds the renter responsible for damage only over a certain
specified amount, sort of an inverse deductible. The rental agreement
typically stipulates that purchasing the damage waiver is not mandatory.
See also
Collision damage waiver.
Links for IRMI Online Subscribers
Only:
CAI III.K;
PRMI 8.D;
PracRisk, Topic G-9