Rental car agreements may obligate you legally to more than any Personal Auto Policy (PAP) can fully cover. Because of these coverage gaps, we generally recommend that you purchase “Collision Damage Waiver” (CDW), sometimes called "Loss Damage Waiver" (LDW), to avoid potential costs that are not covered by your PAP and especially for added convenience. You don’t want a rental car claim to spoil your vacation plans, create unplanned expenses, impair your available credit and cause stress. With CDW, after a collision, you just return the car, report the damage, hand off the keys and go on your merry way.

Get answers and more detailed information to help you make your own decision by clicking on these questions about rental car coverage:

1. What is "Collision Damage Waiver"?
2. What coverage is provided by my Personal Auto Policy?
3. What coverage is NOT provided by my Personal Auto Policy?
4. Are their alternatives to CDW from the rental car company?

NOTE: The added cost of CDW or LDW when renting a car is why many people choose not to buy this coverage and rely only on their Personal Auto Policy (PAP). They are either unaware of the potential of uninsured obligations, feel that the added risk is minimal, or find a less expensive alternative coverage program when they rent a car.

You can always contact your American Insurance Agent to discuss the details of your specific policy.