Car rental, decoded
Collision Damage Waiver (CDW)
Also known as: CDW
An agreement in which the rental company waives its right to charge you for damage to the car, usually above an excess. It is not insurance, it is the company agreeing not to pursue you for some or all of the repair cost. Exclusions (tires, glass, undercarriage, roof) are common.
What you may think
CDW is full insurance with nothing left to pay.
What is actually happening
CDW is the company waiving some or all damage cost, usually above an excess, with common exclusions such as tires, glass, and undercarriage.