Quick Summary
- Collision Damage Waiver (CDW) limits what you pay if the hire car is damaged or stolen, but it does not cover injuries or damage to other people.
- Whether you should buy CDW depends on what is already included in your Hola Car Rentals booking, any personal car insurance you hold and any protection from your credit card.
- For most visitors, choosing a clear CDW package before travelling to the United States is usually simpler and better value than deciding at the counter.
What is a Collision Damage Waiver (CDW)?
When you are booking your US car hire you will almost always see something called Collision Damage Waiver, often shortened to CDW or LDW. It is a contractual waiver from the rental company that limits how much they can charge you if the vehicle is damaged or stolen while it is in your care.
CDW is not the same as liability insurance. It normally only deals with damage to the vehicle you are driving. If you collide with another car or hit a fence, CDW is the part that helps with repairing or replacing the rental car, not paying for injuries or damage to other people.
What does CDW usually cover and exclude?
Every supplier has slightly different wording, but CDW on a typical US hire car will usually cover damage to the vehicle after a crash or act of vandalism, plus theft of the car itself, up to a certain limit or subject to an excess that you still have to pay.
- Damage to the bodywork, doors and panels after a collision.
- Theft of the whole vehicle, if you followed the security rules in the contract.
- Repairs after vandalism or minor parking scrapes, where these are not listed as exclusions.
There are always exclusions, so it is vital to read the policy details on your Hola Car Rentals voucher and on the rental agreement at the counter.
- Glass, tyres, wheels, roof, undercarriage and interior damage are often excluded.
- Driving while under the influence, driving off paved roads or using the car in races will cancel the protection.
- Damage caused by an unauthorised driver or by using the wrong fuel is usually not covered.
Many CDW policies also come with an excess. That is the amount you still pay even when CDW accepts a claim. For example, if the excess is 800 dollars and the damage costs 1,500 dollars, your share is 800 dollars and the rest is waived by the rental company.
Do you really need to buy CDW?
In the United States, some rates already include CDW as standard while others leave you to decide at the desk. When you book with Hola Car Rentals you will see exactly which protections are included, so you can choose a package that matches your risk appetite before you confirm.
If you have a personal US car insurance policy, it may extend collision and comprehensive cover to a rental car used for personal trips. That can reduce the need for separate CDW, but it might also mean making a claim on your own policy, which could affect your premium. Only your insurer can confirm how this works for you.
Many travellers from the UK or Europe do not have a US car policy, so CDW is often essential. Hola Car Rentals offers All Inclusive+ style deals on many routes that bundle CDW with low or zero excess and clear limits, so you are not trying to decode a long insurance menu after a long flight.
If you would like a step by step view of all the main protections available, you can read our full US car rental insurance breakdown before you travel. Remember that this information is general only and not personal insurance or legal advice.
For example, travellers landing in California often combine CDW with generous liability cover when they arrange their Los Angeles Airport driving plans, so they know from day one how much they would have to pay if something went wrong.
If you are dreaming of a loop that starts with city streets and ends on the coast, plenty of Miami driving deals already include CDW, so you can focus more on choosing the right car size and less on last minute extras at the counter.
In destinations like Nevada, where parking garages can be busy at any hour, many visitors choose a package that builds CDW into their Las Vegas driving package, which keeps potential repair bills grounded even if another driver brushes your bumper in a tight space.
How Hola Car Rentals includes CDW in US bookings
Hola Car Rentals works with major US brands to offer bundles where CDW and other key protections are already priced in. That way you see the real cost of your trip upfront instead of trying to calculate extra daily fees at the airport desk.
- Free Cancellation up to 48 hours before pick up on most bookings, giving you flexibility if plans change.
- All Inclusive+ rates that add maximum coverage and reduce or remove the excess on damage to the hire car on selected itineraries.
- No additional fees at pick up on many offers, with savings that can reach up to 60 percent compared with paying locally.
- Free travel insurance up to 150,000 US dollars and maximum liability coverage on selected packages, so both the vehicle and third party cover can be strengthened in one step.
Because everything is presented in plain language at the time of booking, you can compare options with your partner or friends at home instead of trying to decide after a long flight in front of a queue.
Practical tips for driving with CDW
Even with CDW in place, a few simple habits make a big difference to how smoothly your trip goes.
- Inspect the car carefully at pick up and mark every scratch and chip on the form before you leave the car park.
- Take photos or a short video of the car from all sides at the start and end of the rental.
- Park in well lit, official parking areas and keep windows closed and doors locked when you leave the vehicle.
- Avoid leaving key documents or luggage visible in the car, especially in big city centres and tourist hotspots.
- Stick to paved roads and follow the rules in the rental agreement so your CDW stays valid.
FAQs
Is CDW mandatory on a US hire car? Some US states require certain protections to be included, but CDW itself is usually offered as part of a package. When you book with Hola Car Rentals you will see whether CDW is included or optional for your chosen car and pick up point.
Does CDW cover theft of my belongings from the car? CDW normally applies to the vehicle itself, not to personal items. Luggage and gadgets are usually covered, if at all, by your travel insurance policy rather than by the rental agreement.
Will CDW cover every type of damage? No. Most CDW packages exclude damage to tyres, glass, the roof and the undercarriage, and any damage that happens while breaking the rental rules. Always read your voucher and the agreement at the counter before you sign.
Can I rely on my credit card instead of CDW? Some credit cards provide a form of collision damage cover, but there are often strict conditions, exclusions and claim limits. You need to check your own card policy in detail. If you are not completely comfortable with that, choosing a clear CDW package through Hola Car Rentals can be a more relaxed option.
Once you understand how CDW works and what is already included in your booking, you can pick the protection level that feels right and then enjoy planning the fun parts of your trip. When you are ready, book your next vehicle with Hola Car Rentals and choose a package where the key protections are locked in before you land.
