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Definition of CDW

CDW, commonly known as Collision Damage Waiver, is an additional insurance policy that car rental companies offer to their customers. This policy is designed to cover the costs incurred in case the rental vehicle is damaged or even lost during the rental period.

The CDW policy shifts the responsibility for the vehicle damage or loss from the renter to the insurance company. This means that the renter will not have to bear the financial burden of repairing or replacing the damaged or lost vehicle. However, it is important to note that the CDW policy may have certain limitations and exclusions depending on the specific terms and conditions of the policy.

In general, CDW is not mandatory, but it is highly recommended for customers who want to reduce their financial risk and have peace of mind while driving a rental vehicle. The cost of CDW varies depending on the rental company and the level of coverage selected by the customer. Therefore, it is advisable to read the rental contract carefully and understand the CDW policy before signing it.

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