Quick Summary:
- CDW limits what you pay if the rental car is damaged.
- It usually excludes tyre, glass, roof, and underbody damage.
- CDW is not liability insurance, separate cover is still required.
- Check your excess, deposit, and proof rules before collecting in Orlando.
When you arrange car hire in Orlando, “CDW” is one of the most common terms you will see on the quote, the voucher, or at the rental desk. It is also one of the most misunderstood, because it sounds like a type of insurance, but it is typically a waiver of the rental company’s right to claim the full cost of damage from you, as long as you follow the rental agreement.
CDW stands for Collision Damage Waiver. In plain terms, it is protection linked to damage to the rental vehicle. If the car is damaged in a collision, scraped on a pillar, or hit in a car park, CDW can reduce what you are responsible for paying. The key is that CDW almost never makes your cost automatically “zero”. In many cases it limits your exposure to an excess, also called a deductible, and it may come with important exclusions.
If you are picking up near Orlando International Airport, it helps to understand these details before you arrive, because the terms can influence your deposit, the amount blocked on your card, and whether you need additional cover. For practical Orlando airport planning, see car hire at Orlando MCO.
What CDW covers in Orlando car hire
With most Orlando rental agreements, CDW relates to physical damage to the rental vehicle caused by a collision or incident, such as:
Bodywork damage from a crash, bump, or scrape, including doors, bumpers, and panels, when the incident is reported correctly.
Theft-related loss can sometimes sit alongside CDW or be bundled as separate protection, often called Theft Protection (TP). The names vary, so read your voucher wording.
Vandalism may be covered, but it can depend on whether you can provide a police report, where required.
Even when CDW applies, you may still owe an excess. For example, if the excess is $500 and repairs cost $2,000, CDW could mean you pay up to $500 rather than the full $2,000. Some packages reduce the excess, and some premium cover can reduce it to zero, but do not assume that is the default.
What CDW often does not cover
Exclusions are where many travellers in Orlando get caught out. CDW commonly excludes, limits, or applies extra rules to certain damage types. Typical examples include:
Tyres and wheels. Punctures, sidewall cuts, and wheel damage from kerbs may be excluded unless you have specific tyre and wheel cover.
Glass and mirrors. Windscreen chips are common on Florida roads. Some CDW products exclude glass or apply a separate excess.
Roof and underbody. Low-clearance strikes, parking garage impacts, and underbody scrapes are frequently excluded.
Interior damage. Burns, tears, and stains are generally not collision-related and may be charged as cleaning or repair.
Negligence or contract breaches. Driving off-road, ignoring warning lights, using the wrong fuel, or allowing an unauthorised driver can void CDW. If the waiver is voided, you could be liable for the full cost.
Because exclusions vary by supplier and package, treat CDW as “helpful but conditional”. It is designed to limit risk, but only under the rental agreement’s rules.
CDW vs liability insurance in Florida
A crucial point for Orlando car hire is that CDW is about the rental vehicle, not injuries or damage to other people’s property. That is handled by liability cover.
If you hit another car, CDW may help with the cost of repairing your rental vehicle, but it does not automatically cover the third party’s vehicle, medical bills, or property damage. Those costs fall under liability insurance, which may be provided at a basic level by the rental company or available as a higher limit supplement, depending on what is included in your package.
In other words, you can have CDW and still be underinsured for third-party claims, and you can have liability cover but still face a big bill for damage to the hire car if you have no CDW and no other cover.
Excess, deposits, and the credit card hold
Even when CDW is included, the rental company often requires a security deposit. This is typically a temporary hold on a credit card. The amount can depend on vehicle group, length of hire, and what protection is included.
In Orlando, you may see a larger hold when:
CDW has a high excess, because the rental company wants to be confident you can pay it.
You decline optional cover at the counter, which can increase the perceived risk.
You are hiring a larger vehicle, where repair costs and replacement values are higher.
It is also common for policies to specify that the deposit must be on a credit card in the main driver’s name. If you arrive with only a debit card, you may have fewer options or a higher deposit requirement, depending on the supplier and package terms.
How CDW is presented on Orlando rental quotes
CDW can appear in a few ways, and that causes confusion:
Included in the rate. Many holiday packages show CDW as included, sometimes alongside Theft Protection. This means the price already accounts for it, but you still need to verify the excess amount and exclusions.
Optional at the counter. Some rates are lower because they assume you will take CDW at the desk, or because the base rate only includes minimal protection. In those cases, the desk may offer CDW or a similar product under a different label.
Bundled as “full protection”. Some packages wrap CDW with other cover types and reduce the excess. The label varies by supplier.
For comparison, you can see how protection can differ by location and vehicle type on other Hola pages, such as SUV hire in Tampa or car hire in Dallas DFW. The key lesson is that the wording is not universal, so your voucher is the best reference.
Practical Orlando scenarios where CDW helps
Car park scrapes at theme parks. Busy car parks around the theme parks increase the chance of minor door dings and bumper scuffs. CDW can cap your costs to the excess, assuming the damage type is covered and you follow reporting rules.
Minor collisions on I-4. Interstate traffic can be heavy. If you are involved in a low-speed shunt, CDW may protect you from the full repair bill for the hire car.
Weather-related incidents. Florida storms can reduce visibility and road grip. CDW may help with accidental collision damage, but it will not cover reckless driving or contract breaches.
How to check whether your CDW is “good enough”
Rather than focusing only on whether CDW is present, check these points in your documentation:
1) What is the excess? Look for a dollar amount. If it is high, decide whether that level of risk is acceptable for your trip.
2) What are the exclusions? Specifically search for tyres, glass, roof, and underbody. If you will be doing lots of motorway driving or parking garage stops, glass and wheel cover may matter more.
3) What are the reporting requirements? Many agreements require you to report incidents promptly and to obtain a police report for theft or significant accidents. Failing to do so can affect cover.
4) Who is allowed to drive? CDW usually applies only when an authorised driver is behind the wheel. If you plan to share driving, make sure additional drivers are properly added.
5) Where can you drive? Some rentals restrict cross-border travel. While most Orlando visitors stay in Florida, those heading further afield should confirm permitted areas.
Does your personal car insurance or credit card replace CDW?
Some travellers rely on a credit card benefit or a personal motor policy, but this is not automatically a like-for-like substitute for CDW in Orlando.
Credit card cover may be secondary or primary depending on the card, and it can exclude certain vehicle categories, rental durations, or driver ages. It often requires you to decline the rental company’s CDW at the counter. If you accept CDW, the card benefit may not apply.
Personal motor insurance from the UK may not cover US rentals, or it may cover third-party liability only, not damage to the hire car. If it does extend to rentals, it may have limits and documentation requirements.
Because the financial stakes can be significant, align what you have with what the rental agreement expects, especially around excess, authorised drivers, and proof of coverage.
Counter terms related to CDW you may hear in Orlando
Rental desks may use different labels depending on the brand and product bundle. Common terms include:
LDW (Loss Damage Waiver), which often combines collision and theft elements. In some contexts, LDW is broader than CDW, but the practical effect is similar: it limits your responsibility, subject to exclusions and an excess.
Damage waiver, a generic term that could refer to CDW, LDW, or an upgraded product.
Full cover, an informal phrase. Always confirm what “full” means in writing, particularly the excess and exclusions.
If you like to compare how major brands present these options, you can browse supplier-specific pages such as Hertz car rental in Las Vegas. The naming conventions can vary, even when the core concept is the same.
Key takeaways for Orlando car hire
CDW in Orlando is best thought of as a financial safety net for damage to the rental car, not a blanket insurance policy for everything that can go wrong. It can significantly reduce your exposure after an accident, but you still need to understand the excess, the exclusions, and the separate role of liability cover.
Before you travel, read the included protection details on your voucher, check the deposit rules, and make sure all drivers who will drive are properly authorised. Taking a few minutes to confirm these points can prevent surprises at the desk and help you choose the right level of risk for your trip.
FAQ
What does CDW mean on my Orlando car hire voucher? CDW means Collision Damage Waiver. It usually limits what you pay if the rental car is damaged, often up to an excess, provided you follow the rental agreement.
Is CDW the same as insurance in Orlando? Not exactly. CDW is commonly a waiver that reduces the rental company’s right to recover full damage costs from you. It is different from liability insurance, which covers injury or damage to others.
Will CDW cover a cracked windscreen or tyre damage in Orlando? Often not. Glass, tyres, wheels, roof, and underbody damage are common exclusions or have separate rules. Check your rental terms for the exact inclusions.
Do I still need a credit card deposit if CDW is included? Usually yes. A security deposit is common even with CDW, and the amount can vary based on excess, vehicle type, and supplier policies. The hold is typically placed on the main driver’s credit card.
What happens if an unauthorised driver crashes the rental car? CDW may be invalidated if the driver is not authorised on the agreement. That can mean you are responsible for the full cost of damage and related fees.
