What Hertz Loss Damage Waiver Does

Hertz Loss Damage Waiver (LDW) is an optional insurance product that shifts the cost of damage to the rental car from you to Hertz. If you buy it and the car gets damaged during your rental, you typically pay nothing out of pocket for repairs — Hertz covers the bill instead. Without it, you are responsible for the full repair cost, and Hertz will charge your credit card or pursue a claim against your personal auto insurance.

The waiver does not cover every type of damage. It excludes things like interior stains, broken glass, tire damage from road hazards, and damage from misuse or driving off-road. It also does not cover theft, though Hertz offers a separate product called Loss Damage Waiver Plus that does. The exact exclusions depend on the state where you rent and the terms printed on your rental agreement.

Hertz LDW is not the same as your personal auto insurance. Your own policy may already cover rental cars, which means buying Hertz LDW could be redundant. Before you rent, check your policy or call your insurer to see whether rental damage is covered and what your deductible is.

Key Takeaways

  • Hertz Loss Damage Waiver shifts repair costs to Hertz if the car is damaged, but it excludes tire damage, interior stains, and misuse.
  • Your personal auto insurance may already cover rental car damage, so buying Hertz LDW could duplicate coverage you already have.
  • Credit cards often include rental car damage coverage as a cardholder benefit, which is another reason to check before paying for Hertz LDW.
  • Hertz LDW does not cover theft; you need Loss Damage Waiver Plus or your own comprehensive insurance to be protected against theft.
  • The cost of Hertz LDW varies by location, car type, and rental length, and it is always optional — you can decline it at the counter.

How Much Hertz LDW Costs

Hertz charges a daily rate for LDW that varies by location and vehicle class. A compact car in one state might cost $15 per day, while a midsize SUV in another state could run $25 or more per day. The total cost compounds over a week-long rental: a $15-per-day waiver adds $105 to a seven-day rental before taxes.

Hertz does not publish a single national rate. The price is set by local market conditions and is shown on your quote before you book. You can see the LDW cost broken out on your rental agreement at the counter or in your email confirmation. If the price seems high, you can decline it and rely on your personal insurance instead.

Some Hertz loyalty members or credit card holders receive LDW discounts or waivers as part of their membership or card benefits. Check your Hertz Gold status or credit card terms before you book to see whether you already have coverage included.

What Your Personal Insurance Covers Instead

Most personal auto insurance policies cover rental cars under the collision and comprehensive sections, meaning damage from accidents or weather is paid by your insurer, not by you. However, you will owe your policy deductible — typically $500 to $1,000 — out of pocket. Hertz LDW eliminates that deductible, which is the main reason renters buy it.

Some policies exclude rental cars entirely, especially if you have only liability coverage (which is required by law but does not cover your own vehicle). Read your policy or call your insurer before you rent to confirm whether rental damage is covered and what your deductible is.

Credit card rental car coverage is another layer. Many premium credit cards (American Express, Visa Signature, Mastercard World Elite) include rental car damage coverage as a cardholder benefit. This coverage often has no deductible and covers both collision and comprehensive damage. If your card includes this benefit, you may not need Hertz LDW at all.

When Hertz LDW Does Not Pay

Hertz LDW excludes damage that results from misuse, negligence, or violation of the rental agreement. Driving off-road, racing, or towing voids the waiver. Damage from tire punctures, broken windows, and interior stains (spills, burns, tears) are also excluded. If you damage the car while driving under the influence, Hertz will not cover it and may pursue you for the full repair cost plus legal fees.

Theft is not covered by standard LDW. If the car is stolen, Hertz LDW does not pay. You need either Loss Damage Waiver Plus (Hertz's theft-inclusive product) or comprehensive coverage on your personal auto insurance to be protected against theft.

Damage from an accident you cause is covered by LDW, but damage from an accident caused by another driver is typically claimed against that driver's insurance, not against your waiver. If you are hit by an uninsured driver, your own uninsured motorist coverage (if you have it) would explore, not Hertz LDW.

How to Decide Whether to Buy It

Start by checking three things: your personal auto insurance policy, your credit card benefits, and the cost of Hertz LDW for your specific rental. Call your insurer and ask whether rental car damage is covered and what your deductible is. Log into your credit card account or call the card issuer and ask whether rental car damage is included as a cardholder benefit. Then look at the Hertz LDW price on your quote.

If your personal insurance covers rentals with a low deductible (under $500), or if your credit card covers rentals with no deductible, Hertz LDW is probably not worth the daily cost. If you have only liability insurance or no auto insurance at all, Hertz LDW protects you from a potentially large repair bill and is worth buying.

If you are renting in a state or country where you are unfamiliar with traffic laws or road conditions, or if you are renting a luxury or high-value vehicle, LDW reduces your financial risk. The decision ultimately depends on your risk tolerance and what coverage you already have.

What Happens If You Decline LDW and the Car Is Damaged

If you decline Hertz LDW and the rental car is damaged, Hertz will charge your credit card for the repair cost. The amount depends on the damage: a small dent might cost $300 to $500, while major collision damage can run into thousands. Hertz will send you an invoice with photos and repair estimates, usually within a few days of your return.

You can then file a claim with your personal auto insurance to recover the cost, minus your deductible. Your insurer will investigate the claim and reimburse you if the damage is covered under your policy. This process takes weeks and requires you to pay Hertz upfront, then wait for your insurer to reimburse you.

If you have no auto insurance, you pay the full repair cost to Hertz and have no way to recover it. This is why LDW is most valuable for uninsured renters or those with high deductibles.

Hertz Loss Damage Waiver Plus and Other Options

Hertz offers Loss Damage Waiver Plus, which includes theft coverage in addition to collision and comprehensive damage. The daily cost is higher than standard LDW — typically $5 to $10 more per day — but it protects you if the car is stolen. If theft is a concern for your rental location or duration, Plus is worth the extra cost.

Hertz also offers Supplemental Liability Coverage (SLC), which increases your liability limit beyond what your personal insurance provides. This is useful if you are renting in a state with high liability minimums or if you are concerned about causing injury or damage to others. SLC is separate from LDW and covers a different type of risk.

Some renters buy both standard LDW and SLC, or LDW Plus and SLC, depending on their risk profile. Others rely entirely on their personal insurance and credit card benefits and decline all Hertz products. There is no single right answer — it depends on your coverage, your deductible, and your comfort level with financial risk.

Frequently Asked Questions

Does my credit card cover rental car damage?

Many premium credit cards include rental car damage coverage as a cardholder benefit, but not all cards do. Log into your card account or call the issuer and ask whether rental car damage is covered and whether there is a deductible. Some cards cover only collision, while others cover both collision and comprehensive (theft, weather, vandalism).

Can I buy Hertz LDW after I pick up the car?

You can add LDW at the rental counter when you pick up the car, but the daily rate applies from the day you rent, not from the day you add it. If you decline it at booking and change your mind at the counter, you can buy it then, but you cannot retroactively add it after you have already driven away.

What if I get into an accident and the other driver is at fault?

If another driver causes the damage, Hertz will file a claim against that driver's insurance, not against your LDW. Your LDW covers damage you cause, not damage caused by others. If the other driver is uninsured, your own uninsured motorist coverage applies, not Hertz LDW.

Does Hertz LDW cover rental car damage in other countries?

Hertz LDW coverage varies by country and rental location. Some countries require you to buy local insurance instead of or in addition to Hertz LDW. Check your rental agreement or contact Hertz before you travel internationally to confirm what coverage is available and what is required by local law.

Can I use my personal insurance and Hertz LDW at the same time?

Yes, but your personal insurance is primary and Hertz LDW is secondary. This means your insurer pays first (minus your deductible), and Hertz LDW covers the deductible you owe. You cannot collect from both for the same damage, but you can use LDW to eliminate your out-of-pocket deductible cost.