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collision damage waiver (CDW)

An agreement with an auto rental company in which the renter is released from liability for collision damage to the vehicle in exchange for a fee, subject to the terms of the rental agreement or a state statute if one exists. It is not insurance but a contractual obligation subject to many restrictions. See Loss damage waiver.


Links for IRMI Online Subscribers Only: CAI III.K; PRMI 8.D; PracRisk, Topic G-9

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