Collision Damage Waiver
What Does Collision Damage Waiver Mean?
A collision damage waiver (CDW) is a waiver of responsibility for individuals renting an automobile, and it is not technically considered a form of insurance coverage. By purchasing a CDW, the renter cannot be held liable for any loss or damage to the rental car. The cost of a CDW depends on various factors, including the model of the rental car and the renter’s planned driving destinations.
A CDW is also referred to as a loss damage waiver.
Insuranceopedia Explains Collision Damage Waiver
This optional waiver adds an additional daily fee to the rental cost and protects the renter from expenses related to repairs in the event of damage, as well as any loss of use fees while the car is being fixed. Rental companies typically offer a CDW at least once during the rental process. However, certain credit card users may receive this coverage as a benefit when using their credit card to pay for the rental.
Since every state requires some form of automobile insurance for drivers, renters must comply with these varying requirements. Declining a CDW often necessitates providing proof of alternative insurance coverage. If the renter cannot demonstrate that they have another form of coverage, they may be required to purchase a CDW.
