An agreement with an auto rental company in which the renter
is released from liability for physical 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. In some contracts, the
renter may be able to choose either a full damage waiver or one
that holds the renter responsible for damage only over a certain
specified amount, sort of an inverse deductible. The rental agreement
typically stipulates that purchasing the damage waiver is not mandatory.
Collision damage waiver (CDW).
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PracRisk, Topic G-9