What Is CDW (Collision Damage Waiver) Insurance?
A Collision Damage Waiver limits how much you'd have to pay if the rental car is damaged or stolen during your rental. It's technically a waiver, not insurance, though it's sold and marketed as "insurance" almost everywhere.
What CDW actually covers
It caps your financial responsibility for damage to the rental vehicle itself, up to a stated excess or deductible, and usually covers collision damage and theft of the vehicle.
What CDW typically excludes
- Damage to the vehicle's interior, tires, windscreen, undercarriage, or roof in many policies - closing these gaps often requires a separate ""super CDW"" or excess-waiver product
- Injury to you or other people, which is covered separately, if at all, by personal accident or liability cover
- Damage to other vehicles or property, which falls under third-party liability, usually included by law but often only at the legal minimum
CDW vs "full coverage"
CDW with a deductible still leaves you liable up to that deductible amount if something happens. A separate excess-reimbursement or excess-waiver product - often cheaper when bought independently, such as through a standalone travel insurer - can bring that remaining liability down to zero.
Do you already have cover elsewhere?
Some credit cards include rental car collision cover as a cardholder benefit if you pay for the rental with that card. Some personal auto insurance policies extend to rental cars too. Check both before buying the rental counter's CDW at a markup.