What is LRO?

Liability Reduction Option (LRO) (also known as Collision Damage Waiver (CDW)) is an optional insurance product that can be purchased when renting a vehicle. It is designed to reduce the renter's financial responsibility in case of an accident or collision that results in damage to the rental car or injury to other people or their property.

The LRO typically provides the renter with additional liability coverage that exceeds the minimum required by law, which can vary depending on the location and jurisdiction of the rental. This additional coverage can help protect the renter from the financial consequences of an accident that exceeds the limits of their personal insurance coverage.

However, it is important to note that LRO is not mandatory and is an optional product that can add to the cost of the rental.

It is also important to read the terms and conditions of the LRO policy carefully to understand any exclusions or limitations that may apply, such as restrictions on the types of roads or terrain that are covered or a deductible that must be paid in case of an accident.

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