Damage waiver
Damage waiver or, as it is often referred to, collision damage waiver (CDW) or loss damage waiver (LDW), is optional damage insurance coverage that is available to you when you rent a car.
Car rental companies treat the CDW as a waiver of their right to make the renter pay for damages to the car.
In many countries, it is a legal requirement to have CDW insurance included in the basic car rental rate. It covers the rented car. Some rental companies also offer liability insurance and coverage of towing charges. Terms and prices vary. Alternatives to the CDW include other car insurance policies, some coverage from credit card issuers (Visa, MasterCard, etc.,) and some travel insurance.
Risks addressed
Liability. If the car damages property or injures someone, the customer or other insurance must pay for the damages (liability). US car rental companies sometimes include minimum liability insurance required by law in the basic rental charge. Hertz includes it in all states except California, but will subrogate any damages against the driver (meaning the car is insured to the state minimum but the driver will pay for all damages paid by Hertz). Avis includes it in all states except California and Texas, at least for renters who lack their own coverage. Other companies do not publicize where they include liability insurance in the basic rental charge. Some car rental companies offer more liability insurance for a fee.
