--- title: "Collision damage waiver" description: "A collision damage waiver is an optional rental car add-on that waives your responsibility for damage to the car. What it covers and what voids it." canonical: https://engine.com/glossary/collision-damage-waiver updated: 2026-11-02 author: "Engine Editorial" --- # Collision damage waiver A collision damage waiver (CDW) is an optional add-on in which the rental car company agrees to waive all or part of your responsibility for damage to, or theft of, the rental car. Also called: CDW, loss damage waiver, damage waiver Not to be confused with: liability coverage Updated November 2, 2026 by Engine Editorial ## What is a collision damage waiver (CDW)? A collision damage waiver is the optional add-on that takes damage to the rental car off your hands. This cheat sheet covers how to think about one and what to check before you accept or decline it. The detail is further down. ### How to think about it - **It's a waiver, not insurance.** The rental company agrees to waive your responsibility for all or part of the cost of damage to, loss or theft of the car. Enterprise and Wisconsin's consumer protection agency both say plainly that it is not insurance. - **It's optional.** Buying the waiver is not required to rent a car. It adds a cost per day to the rental. - **It covers the car, not people.** The waiver won't pay for bodily injuries or damage to your personal property. Third-party liability is a separate product. - **Breaking the rules voids it.** The waiver is subject to the actions listed on the rental agreement that invalidate it. An unauthorized driver at the wheel usually means no coverage. ### Before you accept or decline - **Check your auto policy.** To protect a rental car, a personal policy needs collision and comprehensive coverage. Your agent can tell you if and how it extends to rentals. - **Check your card.** Credit card coverage could be secondary to your auto policy. Ask the card company what it covers before you get to the counter. - **Know what declining means.** By declining the waiver, you accept responsibility for damage to the rental car, which could mean significant out-of-pocket costs upfront. - **Read the exclusions.** Look for limits on authorized drivers, unpaved roads, intoxicated driving and drag racing. Enterprise's waiver, for example, doesn't apply to damage in Mexico. ## Collision damage waiver vs. other rental coverage | Coverage | What it pays for | Watch for | | --- | --- | --- | | Collision damage waiver | Damage to, loss or theft of the rental car | Actions listed on the rental agreement that void it | | Supplemental liability protection | Third-party liability claims, up to $300,000 combined at Enterprise | Sold separately, for a daily charge | | Your personal auto policy | The rental car, if you carry collision and comprehensive | Fees like administrative charges, towing and diminished value | ## How it works on Engine Engine's [rental car booking](https://engine.com/features/rental-car-booking) applies company travel policies to cars. Policies can control daily rates and out-of-policy handling, with vehicle, brand, protection and payment settings available. Reservation terms and cancellation fees vary, so review the details shown for the selected rental before booking. ## Set rental car rules once On Engine, admins can set daily rate limits, vehicle restrictions and preferred brands for rental cars. Free to use. [Get started](https://engine.com/sign-up) ## Questions ### Is a collision damage waiver the same as insurance? No. It is a guarantee you buy from the rental company that it will pay for damage to the rented car. Enterprise's terms say in capitals that its damage waiver is not insurance. ### Do I need a collision damage waiver if I have car insurance? Maybe not, if your policy has collision and comprehensive coverage that extends to rentals. An auto policy may not cover rental agency fees like administrative charges, towing and diminished value, and credit card coverage may exclude some vehicles, such as some pickups and SUVs. ### What's the difference between CDW and LDW? Rental companies use different names. Hertz's UK terms say Collision Damage Waiver, Enterprise says Damage Waiver and Avis's FAQ covers both loss damage waiver and collision damage waiver. Enterprise's version covers damage to, loss or theft of the car. ### How much does a collision damage waiver cost? Engine's guide to rental car fees puts counter collision waivers at $10 to $30 a day. If your company card or fleet policy already covers damage, buying it means paying twice for the same protection. ## Go deeper - [Rental car booking on Engine](https://engine.com/features/rental-car-booking) - [Rental car mileage fees and other charges](https://engine.com/blog/rental-car-mileage-fees) - [Car rental agreement](https://engine.com/glossary/car-rental-agreement) ## Sources 1. Enterprise Rent-A-Car, "What insurance options are available for my Enterprise rental car?," https://www.enterprise.com/en/car-rental-faqs/us-insurance-and-protections/car-rental-insurance.html, accessed November 2, 2026. 2. Enterprise Rent-A-Car, "Rental Rate Details," https://www.enterprise.com/en/business-car-rental/business-car-rental-terms.html, accessed November 2, 2026. 3. Wisconsin Department of Agriculture, Trade and Consumer Protection, "Car Rentals and Collision Damage Waivers," https://datcp.wi.gov/Pages/Publications/MV-CarRentalCollisionDamage260.aspx, accessed November 2, 2026. 4. Hertz (U.K.) Limited, "Terms and Conditions of Rental," https://www.hertz.com/rentacar/reservation/reviewmodifycancel/templates/rentalAgreement.jsp, accessed November 2, 2026. 5. Avis, "Avis Car Rental FAQs," https://www.avis.com/en/help/protectionHelp/protectioncoverage_us, accessed November 2, 2026. 6. Engine, "Rental Car Mileage Fees: What You Need to Know For Crew Travel," https://engine.com/blog/rental-car-mileage-fees, accessed November 2, 2026. 7. Engine, "Rental Car Booking for Business Travel," https://engine.com/features/rental-car-booking, accessed November 2, 2026.