Coverage & liability · Travelers + trade
Collision Damage Waiver (CDW)
Also called CDW, damage waiver
What it means
A Collision Damage Waiver is the rental company agreeing not to charge you for damage to the rental car, usually beyond a set amount (the excess or deductible). It isn't an insurance policy: it's a waiver of the company's right to recover costs from you. Common exclusions include tires, glass, the roof and underbody, and damage caused by breaking the rental agreement.
Why it matters
CDW decides how much of a damage bill lands on you. In much of the world a basic CDW is built into the rental price with a high excess; in the US it's usually an optional extra.
Wording by region
In the US the same product is usually sold as a Loss Damage Waiver (LDW), which adds theft.
Related terms
- Loss Damage Waiver (LDW)A waiver covering damage to and theft of the rental car, common in the US and Canada; it can come with a deductible or none.
- Deductible vs excessSame thing, two words: the most you pay toward damage or theft of the rental car before the rental company's waiver covers the rest.
- Super CDW / excess reductionAn optional upgrade that cuts your excess, often to zero, on top of the basic damage waiver.
- Theft Protection (TP)Limits what you pay if the rental car is stolen, usually down to a theft excess.
Also related Exclusions (rental cover), Waiver vs insurance