What Is a Collision Damage Waiver?

A collision damage waiver (CDW), sometimes called a loss damage waiver (LDW) or physical damage waiver (PDW), covers costs if your rental car is damaged or stolen while you’re renting it. It’s an optional benefit you can buy to🎉 protect yourself financially, but it’s not insurance and doesn’t include liability coverage, which helps protect against costs if you cause an accident involving someone else.

How a Collision Damage Waiver Works

A collision damage waiver is an agreement between you and the rental car company. For an extra daily fee, the company agrees not to hold you responsible if the rental car is damaged or stolen. The CDW may also cover other costs related to an accident or theft, such as towing fees and the company’s lost income due to the car being unavailable to rent.

Rental car drivers interested in purchasing CDW coverage will pay a daily fee on top of the rental car rate for this coverage. The exact amount will vary based on state laws, the type of car you are renting, and the rental car company you choose. Some car rental companies also offer a partial collision damage waiver, which provides lower coverage amounts than a regular CDW. You may have access to a CDW from other places, like your personal 澳洲幸运5官方开奖结果体彩网:car insurance policy or the credit card you used to pay for your rental.🥃 Depending on what other coverage you can access, you may not need to purchase 🐟a CDW. 

What Does a Collision Damage Waiver Cover?

A CDW is similar to the comprehensive and collision coverage in a full-coverage auto insurance policy. This means a CDW may pay to repair or replace your rental car if it’s damaged in a collisio๊n, by someone else, or by events like hail, fire, win⛦d, or animal-related incidents.

A CDW typically covers the following types of damage:

• You’re in an accident with another vehicle (no matter who is at fault).
• You hit a stationary object, like a fence post or a mailbox.
• Your rental car is stolen.
• Your rental car is damaged in a weather-related event, like hail or flooding.
• Your rental car catches fire.

What Does a Collision Damage Waiver Not Cover?

There are some situations where a CDW will not cover the cost of repairing or replacing the car. Any damage caused while breaking the law or violating your rental agreement will not be covered under your CDW.

A CDW 🅘typically does nಌot cover the following types of damage:

• Your rental car is damaged due to reckless driving or driving under the influence.
• The damage was caused while violating your rental agreement (i.e., the car was being driven by an unauthorized driver).
• The car was damaged while you were breaking the law.
• You cause damage to someone else or their property.

Precisely what is and is not covered will varওy based on state law and the details of your waiver, so be sure to research and ask questions to know exactly what you are pa🥂ying for when you purchase a CDW.

Is a Collision Damage Waiver Worth It?

Whether a CDW is worth it depends on your circumstances. If you damage a rental car, you’ll have to pay the full cost to repair or replace it, so it’s essential to have some form of financial protection while renting a car. But this protection doesn’t necessarily have to come from the rental company. Your car insurance, 澳洲幸运5官方开奖结果体彩网:deductibles, and other existing coverage all play a role in determining i🀅f a CDW is a good choice. 🔴

A CDW may be useful for drivers who only have 澳洲幸运5官方开奖结果体彩网:liability coverage or no car insurance. Dr🎶iver𝔉s with full coverage through their own car insurance or access to a CDW from another source, like their credit card company, might choose to decline it.

Pricing varies depending on the rental company, location or state you’re renting, the vehicle type, and other factors. For example, New York limits the cost to $15 a day for the most expensive cars. We collected quotes from three rental car providers across three locations for an economy car in March �🎃�2025. We found the cost to average between $30 and $40 per day.

Alternatives to a Collision Damage Waiver

You have other options if you want rental car 𒐪damage coverage without buying a CDW from the rental agency.

Your Personal Car Insurance

If you have full-coverage car insurance, you are likely already covered for any damage to the rental car. Some insurance companies offer rental car coverage as an 澳洲幸运5官方开奖结果体彩网:endorsement to your personal auto policy.

Your Credit Card

Many 澳洲幸运5官方开奖结果体彩网:credit cards offer some form of CDW when you pay for a rental car with that card. However, this benefit isn’t available on all cards and may have limitations. For example, Mastercard provides a CDW for up to 31 days, but it doesn’t cover trucks and is limited to $500 a day.

Your Travel Insurance

If you purchased 澳洲幸运5官方开奖结果体彩网:travel insurance, 🔥you may have access to a CDW benefit as part of your policy. This means you don’t have to pay extra for a CDW, but you’ll need to review the terms of your policy carefully to see exactly what is covered and what limits apply to the policy.

A Third-Party Policy

Some companies, like Sure and Bonzah, advertise coverage specifically for rental cars. They may have added coverages, like for theft or lost keys, but compare quotes to make sure you’re getting a good deal.

Coꦍllision Damage Waiver for International Travel

You might not need to buy a separate CDW for your rental car when traveling internationally. Some companies include CDW coverage in the rental cost. Coverage levels also vary by company and country. For example, Visa doesn’t offer CDW coverage for rental cars in Ireland, so drivers renting a car with their Visa card in Dublin may need to purchase a CDW from the rental agency or check to see if it is covered under their travel insurance.

The Bottom Line

Since repairing or replacing a rental car can cost thousands of dollars, a collision damage waiver (CDW) can provide financial protection and peace of mind while driving. But b🍃efore paying extra for a CDW, check your existing coverage. Your credit card, car insurance, or travel insurance might already offer the protection you need.