What is a collision damage waiver (CDW)?

A collision damage waiver (or CDW) is an extra offered by car rental companies to reduce your liability when you rent a car from them. By buying a collision damage waiver, you reduce the excess fee (or deductible) you'd have to pay if the car is damaged. Usually, a CDW reduces your liability to zero. It's a way of giving yourself extra protection when renting a high-value asset, such as a car.

Is it worth buying? That depends on your risk appetite, and whether you think you're likely to pick up any damage during your rental period. Some rental companies will roll the collision damage waiver into a more general loss damage waiver (LDW).