Physical Damage Waiver/ Loss Damage Waiver/ Collision Damage Waiver: they are all the same thing.PDW/LDW/CDW for short. None are insurance. You will see these three letters in any car rental contract in the US. The easiest explanation is that PDW/LDW/CDW is a way for car rental companies to make more money. PDW assigns an additional daily rate payable to the rental car company that provides a finite liability to the renter for accidents in involving collision only (i.e. hitting a deer). Example, PDW costs renter $15/ day with a $1,000 maximum. Renter hits a deer, they pay rental car company daily rate, plus $1,000, and they walk away. Regardless of the cost of repairs, Loss of Use, or just about anything else. This system can work well for the renter, but it is rife with wording designed to minimize the companies actual exposure. If you read the small print, you will see the Prohibited Use of vehicle on the back voids PDW/LDW/CDW agreements. So if you drive on a gravel road- at any point of your rental term- you have voided your PDW agreement. Not practical for a rental car in Montana.
If you accept the PDW/LDW/CDW your insurance company, and/ or your credit card company will most likely deny all coverages!!!
PDW in conclusion:
If you have personal auto insurance with rental car coverage, accepting the PDW is not a sound financial idea.
If you have additional primary collision insurance, such as our RCP Insurance, or American Express Premium Coverage, accepting the PDW is not a sound idea.
At Explore Rentals we do not offer CDW/ PDW/ LDW.