A collision damage waiver is the rental company's promise not to pursue the renter for damage to the vehicle, usually subject to a deductible.
A collision damage waiver is the rental company’s promise not to pursue the renter for damage to the vehicle, usually subject to a deductible.
Also called: CDW, LDW, Loss damage waiver.
How it works#
It is a contractual waiver rather than insurance, and its limits follow from that: tyres, glass, undercarriage, roof and lost keys are frequently excluded, as is driving off sealed roads. Card benefits typically apply only when the entire rental was paid with that card and the company’s own waiver was declined, that condition decides whether a claim succeeds.
Not to be confused with#
A collision damage waiver is not liability insurance: it covers damage to the rental vehicle, not damage caused to other people or their property.
In German#
The German term is Haftungsbefreiung beim Mietwagen. German version of this term
Related terms#
- Deductible: A deductible is the amount the insured person pays on every claim before the insurer covers the remainder.
- Primary coverage: Primary coverage means a card’s insurance pays first in a claim; secondary coverage only pays what another policy has not already covered.
- Credit limit: A credit limit is the maximum balance a card account may carry between statements.
Articles that use this term#
TopicEvery article and term onCards and money.