CDW (Collision Damage Waiver)

An optional waiver that limits what a renter pays if the rental car is damaged.

A Collision Damage Waiver is not insurance in the strict sense: the rental company agrees to waive its right to charge the renter the full cost of damage, down to an excess amount. Operators usually sell it per day at the counter or online, and set exclusions such as tyres, glass or negligent driving in the rental terms.