Rental Car Deductible in the USA: How to Get to Zero (2026)
Updated October 30, 2026 · By Yaniv Segal, RentCarUSA
In short: In the USA, when you rent a car without a damage waiver (LDW/CDW), you may be responsible for damage up to the full value of the car. When the LDW is bought from the rental company itself, in most cases no deductible remains for the car, subject to the exclusions in the contract. Other options, such as a reimbursement policy or a credit card, require you to pay first and claim the money back later.
What is a deductible on a rental car, and why is it different in the USA?
A deductible ("deductible" in the USA, "excess" in Europe) is the amount you pay yourself for damage to the rental car before the coverage starts to work.
If you have rented a car in Europe, you may know this situation: the price includes CDW, but with a deductible of hundreds or thousands of euros, and at the counter you are offered "Super Cover" to reduce it to zero. In the USA, the structure is the opposite:
- Without LDW/CDW, there is no "deductible" in the usual sense. You are simply responsible for the damage, in the worst case up to the value of the car, and sometimes also for administration fees and lost rental days.
- With LDW bought from the rental company, in most cases the company waives charges to you for damage to the car or its theft, with no deductible amount. So in the USA, the LDW itself is usually the way to zero.
Please note: this is the common situation, not a law. There are also offers in which the damage waiver includes a deductible. Always check whether the word "deductible" appears next to the LDW in the contract. An explanation of all the abbreviations is in the guide Rental car insurance in the USA.
What are the ways to reach a zero deductible?
| Option | How it works | Advantages | Disadvantages |
|---|---|---|---|
| The rental company's LDW | A direct waiver in the contract | No payment and no claim. You settle everything with the branch | Expensive at the counter, often tens of dollars per day |
| A package with LDW already included | The final price already includes the waiver | Clear in advance, no surprises at the counter | You need to confirm that LDW is really included, not only "basic insurance" |
| Deductible reimbursement policy (third party) | You pay the rental company, then claim from the insurance company | Relatively cheap, and sometimes covers tires and windows | You pay for the damage until you are reimbursed, and you need available credit |
| Credit card insurance | Similar to a reimbursement policy, according to the card's terms | You may already have it | Terms vary a lot; sometimes limited in days and in amount |
For the last option, we wrote a special guide: Does credit card insurance cover a rental car in the USA.
What is still not covered, even with a "zero deductible"?
A zero deductible does not mean you can never be charged. The waiver depends on following the terms of the contract, and these are the common cases in which it does not apply:
- A driver who is not listed on the contract. If your partner drove and was not listed, the coverage may not apply. See Additional driver on a rental car in California.
- Driving under the influence of alcohol or drugs.
- Driving to a prohibited place. With us, for example, driving to Mexico is not allowed, and dirt roads are also usually excluded.
- Gross negligence, such as leaving the key in an unlocked car.
- Items excluded in some contracts, such as tires, windows, the underside of the car, lost keys or towing that is not caused by a breakdown.
In addition, a damage waiver covers the rental car, not what happened to the car you hit. For that you need third-party liability, which we explain in the guide Third-party liability in California.
How do you protect yourself at pickup and return?
Even with a zero deductible, the cheapest option is never to get into an argument about damage at all. A few minutes of documentation save a lot:
- Take a video of the car before you leave the branch: a full walk around the car, including the bumpers, wheels, windshield and roof. Los Angeles is full of tight parking spaces, and small scratches are common.
- Photograph the dashboard with the odometer and the fuel gauge.
- Make sure all existing damage is recorded on the rental form or in the app before you leave.
- At return, take photos again in the same way, preferably in good light and at the return location itself.
- Keep all documents until the deposit is released from your credit card.
And if something does happen on the road, there is a step-by-step guide: What to do after an accident or damage to a rental car in Los Angeles.
What is included in our monthly rental?
Every quote we give includes damage and theft coverage for the car (CDW/LDW), third-party liability up to $300,000, all taxes and airport and tourism fees, and unlimited miles. You do not need to buy a damage waiver at the counter. The exclusions are those that appear in the rental contract, such as an unlisted driver or driving to Mexico. Even with the coverage, there will usually be a hold on the driver's credit card, from a few hundred dollars up to about $1,000, which is released after the return.
For example, for 26 days: Compact sedan (Ford Focus or similar) $832 in total, Midsize SUV (Nissan Rogue or similar) $962. The prices are fixed also during holidays. More about the monthly rental in the main guide.
Frequently asked questions
Do I need to buy "Super Cover" in the USA, like in Europe?
Usually not. In the USA, the LDW bought from the rental company already removes, in most cases, your responsibility for damage to the car. It is important to confirm in the contract that no deductible appears.
If I have a deductible reimbursement policy, can I decline the LDW?
You can, but then for any damage the rental company will charge your card, and you will claim the amount back. On a one-month rental, this is a financial risk and requires a large credit limit.
Is a small scratch in a parking lot considered damage?
It depends on the size and on the branch's policy. The best way to avoid an argument is careful documentation at pickup and at return.
Why is money still held on my card if everything is covered?
The deposit covers things that the waiver does not cover, such as missing fuel, tolls, tickets and damage caused by a breach of the contract. See Credit card and deposit hold for a car rental.
Want a long-term rental without deductible calculations? Get a quote.