What Is CDW Insurance On Car Rentals? 
-- > Normal 0 It is my understanding you will find CDW in many car rental agreements and it is an abbreviation for Collision Damage Waiver . When you rent a car , you are required to sign a rental agreement . Most renters fail to read the agreement but in most cases the agreement states you agree to accept full responsibility should the car is damaged in any way , even if that damage is not your fault ! For an additional daily charge , often $ 20 or more , rental companies will not charge you should you return their car with damage or report it stolen . Thats a pretty hefty charge for what many would consider one day 's comprehensive and collision coverage . Annualized that amounts to rental customers paying more than $ 7000 a year just for potential damage to the car ! Your own car insurance may extend to cover damage to cars you rent but check with your agent or insurer to make sure . Even if your insurance coverage extends to cover a rental car you are driving , it may not cover all the charges the rental company makes you responsible for . Often when signing the rental agreement , you assume responsibility for the loss of value to their car if it is damaged , the loss of rental revenue they lose while the car is being repaired and even their administrative costs incurred as a result of the damage . These costs are usually not covered by most personal auto insurance policies . And more than likely , you have given the rental company permission to put those charges right on your credit card . Be alert ! 