collision damage waiver

Meaning

A collision damage waiver (often abbreviated as CDW) is an optional insurance coverage offered by car rental companies that waives the renter's financial liability if the rental car is damaged or stolen. It is a formal, legal, and financial term highly relevant to international travelers renting vehicles. It is important to know that a CDW is technically a waiver of liability, not an insurance policy itself.

Examples

• When renting a car in Europe, it is highly recommended to purchase the collision damage waiver.

  When renting a car in Europe, it is highly recommended to purchase the collision damage waiver.

• Does my credit card already provide a collision damage waiver, or do I need to buy it from the agency?

  Does my credit card already provide a collision damage waiver, or do I need to buy it from the agency?

• The rental agent explained that the collision damage waiver does not cover damage to the tires or windshield.

  The rental agent explained that the collision damage waiver does not cover damage to the tires or windshield.

• Without a collision damage waiver, you could be held liable for the full cost of any repairs.

  Without a collision damage waiver, you could be held liable for the full cost of any repairs.

• I opted for the super collision damage waiver to reduce my excess liability to zero.

  I opted for the super collision damage waiver to reduce my excess liability to zero.

Common Mistakes

• ✗ I bought a collision damage waiver to pay for my medical bills after the crash.

  ✓ I bought personal accident insurance to pay for my medical bills after the crash.

  A collision damage waiver only covers physical damage to the rental vehicle, not personal injuries or medical expenses.

• ✗ The rental company forced me to sign a collision damage waiver for my own personal car.

  ✓ The rental company offered me a collision damage waiver for their rental car.

  CDWs are exclusively for rental vehicles, not personal cars which use standard auto insurance.

Related Expressions

Practice

• If you decline the ___, you will be responsible for any scratches on the rental car.

  💡 An agreement that limits your financial liability for rental vehicle damage.

  Show answer

  collision damage waiver

• Many premium credit cards offer a complimentary ___ as a travel benefit.

  💡 CDW.

  Show answer

  collision damage waiver