This term is used in the car rental business. When you rent a car the car rental company have Collision Damage Waiver (CDW) as an offer on their contract. It is an option that reduces a car renter’s financial responsibility in the event of damage to the car.

Some car rental companies offer two options: the normal and a Super Collision Damage Waiver. The latter will reduce the car renter’s responsibility for accidental damage even further. The limits will be set out in a table on the contract you sign when renting a car. The waiver is limited to a certain amount and normally excludes tyres, glass such as window and windscreen and towing costs. An excess also applies.

Collision Damage Wavers are not acknowledged by the South African Financial Services Board as a type of insurance. Disputes have arisen as to the right of car rental companies to insist on the purchase of these waivers as the argument is that insurance is already included in the rental. Some rental companies will now request South African residents to provide proof that they have arranged private insurance for the rental car, if they refuse to purchase the Collision Damage Waiver.  For International visitors the purchase of the CDW is a non-negotiable.