Fee glossary · Optional add-on
CDW / LDW: Collision or loss damage waiver
A waiver, not insurance. If you buy it, the rental company agrees not to hold you responsible (or to limit what it charges) for damage to or theft of the car, under the terms of the agreement.
Also shown as: CDW LDW CDW3 damage waiver MDW
What to know
- It is usually the most expensive line on a counter receipt and is priced per day.
- Codes and tiers vary ("CDW", "LDW", "CDW3", "full coverage"). Ask what the tier number means and what deductible or exclusions remain.
- Many personal auto policies extend some coverage to rentals, and many credit cards offer secondary or primary rental collision coverage when you decline the waiver and pay with that card. Coverage varies; check before you travel.
At the counter, say
"I am declining the collision or loss damage waiver. Please show me the line marked declined before I initial."
Check on your agreement
- The line says declined (or $0.00) on the agreement you initial.
- The daily rate times the number of days matches the total on the line.
- If you were told it is mandatory, ask where the agreement says so and write down the answer.
On a real receipt
On the receipt behind review #1, "CDW3" was $44.99/day, or $539.88 for 12 days, more than the $358.19 base rate.
If it was charged anyway
- Ask for a corrected, itemized receipt before you leave the lot.
- Do not sign a release that trades a partial refund for your card-dispute rights unless you have decided that is what you want.
- Send your card issuer a written billing-error notice within 60 days after the first statement showing the charge (15 U.S.C. § 1666; CFPB guide).
- Use the receipt checker to total it and draft the letter.
Related company pages
Frequently asked questions
Is a collision damage waiver required to rent a car?
In most U.S. rentals, no. It is an optional product the company sells. Some rentals (for example certain international or debit-card rentals) can carry extra requirements, so read the terms of your specific booking.
Does my credit card cover rental car damage?
Many cards include rental car collision coverage when you decline the company waiver and pay with that card. Whether it is primary or secondary, and which vehicles and countries it excludes, depends on the card. Call the number on the back of the card or read its guide to benefits.
What if the waiver was added after I declined it?
Ask for a corrected receipt before you leave the lot. If it is not fixed, keep the agreement and receipt, and dispute the charge with your card issuer. Under the Fair Credit Billing Act, a written billing-error notice must reach the card issuer within 60 days after it sent the first statement showing the charge.
Reviewed . General consumer information, not legal advice. See something wrong? Request a correction.