Renting a vehicle can be a very daunting experience if you have never done it before. Many people are often put off by all of the terminology and jargon. Depending on where you are renting a vehicle in the world, people will refer to car hire excess insurance with a few different names. If the terms CHE, CDW, LDW, or SLI look familiar to you, then keep reading.
Collision Damage Waiver: CDW or Collision Damage Waiver is the agreement from the rental company to waive the cost of damage to the rental vehicle if it is involved in an accident. It doesn’t mean that you don’t have to pay anything. You may still be liable for an excess payment.
Loss Damage Waiver: LDW or Loss Damage Waiver is the agreement from the rental company to waive the cost in the event the rental vehicle is stolen or in the event you cannot use the vehicle (loss of use).
Supplementary Liability insurance: SLI or Supplementary Liability insurance provides cover if you are involved in an accident while renting a hired car and cause damage to a third-party by injuring them with the rental vehicle or causing physical damage to their property.
Deductible: In the USA and Canada, the excess is often referred to as a deductible.