Collision Damage Waiver (CDW)

Collision Damage Waiver (CDW)

If you’ve ever rented a car, you may have been offered a collision damage waiver (CDW) by the rental car company. CDW is an optional insurance product that can protect you from financial liability in case of an accident or damage to the rental car. In this blog post, we’ll take a closer look at collision damage waiver and what you need to know before deciding whether to purchase it.

What is a Collision Damage Waiver?

A collision damage waiver (CDW) is an optional insurance product offered by rental car companies. CDW is not an insurance policy, but rather a waiver that relieves you of financial responsibility for damage to the rental car or theft of the rental car. With CDW, if you are in an accident or the rental car is stolen, you will not be responsible for the cost of repairs or the cost of the rental car.

How Does Collision Damage Waiver Work?

If you purchase a collision damage waiver, the rental car company will waive its right to pursue you for damage to the rental car. However, there are certain conditions that must be met for the waiver to apply. For example, you may still be responsible for a deductible or excess, which is the amount you are required to pay before the waiver applies. Additionally, the waiver may not apply if you violate the terms of the rental agreement, such as driving under the influence of drugs or alcohol.

Should You Purchase a Collision Damage Waiver?

Whether or not you should purchase a collision damage waiver depends on your individual circumstances. If you have a personal auto insurance policy, it may provide coverage for rental cars. However, it’s important to check with your insurance company to confirm that you are covered and to what extent. If you don’t have personal auto insurance, or if your policy does not cover rental cars, purchasing a collision damage waiver may be a good idea.

It’s also worth considering whether the cost of the collision damage waiver is worth the protection it provides. CDW can be expensive, and it may add a significant amount to the cost of your rental car. You should also consider the deductible or excess that you may be responsible for, as this can also affect the cost of the CDW.


A collision damage waiver can provide peace of mind when renting a car, but it’s important to weigh the costs and benefits before making a decision. If you have personal auto insurance that covers rental cars, you may not need to purchase CDW. However, if you don’t have coverage or if you want additional protection, purchasing CDW may be a good idea. Be sure to read the rental agreement carefully and understand the terms and conditions of the collision damage waiver before making a decision.

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