What does a Collision Damage Waiver (CDW) provide for car renters?

A Collision Damage Waiver (CDW) provides car renters with the insurance coverage that waives financial responsibility for damage to the rental vehicle. When a renter purchases a CDW, they are protected against the costs associated with damages to the car resulting from an accident, theft, or vandalism, up to a certain limit specified in the rental agreement. This means if the rented car gets damaged, the rental company agrees to cover repairs, and the renter does not have to pay for those damages directly, provided that the terms of the waiver are adhered to.

This protection is an important consideration for renters, as it helps alleviate the financial burden that comes with car accidents while renting a vehicle. Other options, while related to rental services, do not pertain to the specific coverage provided by a CDW. For instance, coverage for lost items or refunds for early returns are handled differently and aren't addressed by CDW contracts. Discounts on future rentals focus more on customer loyalty or promotional offers rather than damage waivers.