Collision Damage Waiver
A Collision Damage Waiver (CDW) is an optional service sold by rental car companies to cover you in case of an accident or damage to your rental car. The collision damage waiver covers only the rented vehicle and means that the rental company waives its right to pursue you for damage. Your rental car company may call it a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), and may also be referred to as Collision Damage Waiver insurance or Loss Damage Waiver insurance.
Key Things to Know About Collision Damage Waivers
- A CDW covers damage to the rental car, but not to other people’s property.
- Collision damage waivers for economy vehicles typically cost $10 – $30 per day.
- Damage waivers do not cover theft or risky behaviors that result in damage, such as drunk driving.
- Personal auto insurance and credit card benefits serve as alternatives to collision damage waivers.