Loss Damage Waiver (LDW) Law and Legal Definition

Loss Damage Waiver is also called “collision damage waiver”. LDW is an optional collision coverage available while renting a car. The waiver covers accidental damage, theft, vandalism, and loss of use. However, accidental damage is covered only when the renter complies with the rules and regulations of driving. The renter sometimes has a choice between waiving all or part of the damage, for different fees.