A collision damage waiver (CDW) is a short-term auto agreement in which the rental company limits the renter’s liability for collision damage to the rental vehicle, subject to exclusions.
What it covers
CDW usually reduces the renter’s out-of-pocket exposure for accidental collision or rollover. It does not usually remove all risk, and it may not apply to specific damages or user violations.
Claims and underwriting context
The waiver is priced as part of the rental transaction and usually requires selecting a deductible option. Loss controls rely on vehicle condition inspection, signature on agreement terms, and fraud checks.