Guides / Renting a car
Rental counter coverage, explained
CDW, LDW, SLI, PAI and PEC: what each one is and what to check before you say yes.
At the rental counter you'll usually be offered several products. Some may duplicate coverage you already have; others may fill a real gap. Knowing what each one is makes the decision calmer.
The usual options
- Collision or loss damage waiver (CDW/LDW): the rental company agrees not to charge you for damage to or theft of the rental car, subject to its terms. Technically a waiver, not insurance.
- Supplemental liability insurance (SLI): extra liability protection above what the rental includes or what your own policy provides.
- Personal accident insurance (PAI): medical and accidental death benefits for you and passengers.
- Personal effects coverage (PEC): theft of belongings from the car.
What to check first
- Does your own auto policy extend collision, comprehensive and liability to rental cars, and in this country?
- Does the credit card you'll pay with offer rental car coverage, and is it primary or secondary?
- Do your health insurance and homeowners or renters policy already cover what PAI and PEC offer?
- What are the rental company's fees for "loss of use" and administrative costs, and does your coverage pay them?
Coverage varies by policy, card and country. Confirm with your insurer, card issuer and rental company before you travel. Global Auto Coverage is not an insurer, broker or rental company and takes no referral fees.