Quick Summary:
- CDW limits your costs for damage to the rental car itself.
- It usually includes an excess, plus key exclusions you must check.
- CDW is not liability insurance, it will not cover third-party injuries.
- Compare your card cover and travel insurance before paying for upgrades.
When you arrange car hire in Florida, you will often see CDW on the quote or at the rental counter. CDW stands for Collision Damage Waiver. Despite the name, it is usually not a standalone insurance policy, it is a waiver offered by the rental company that can reduce, or sometimes remove, what you must pay if the rental vehicle is damaged.
Because Florida is a high-demand driving destination with busy motorways, frequent storms, and crowded tourist areas, understanding CDW is practical. If you do not know what you are accepting or declining, you can end up double-covered, under-covered, or surprised by an excess and exclusions.
If you are comparing providers, you can browse location pages such as car rental in downtown Miami to get a sense of typical cover options you may be offered in Florida and beyond.
What CDW means in Florida car hire
CDW is the rental company’s agreement to waive some or all of its right to charge you for damage to the hire car following a collision or incident. In practice, CDW generally addresses the rental vehicle only, not people, not other vehicles, and not property belonging to others.
In Florida, CDW commonly covers the cost of repairs to the rental car after an accident, vandalism, or a single-vehicle incident such as scraping a pillar in a car park. If the car is stolen, CDW may also reduce what you owe, depending on whether theft protection is bundled or separate.
CDW is often sold in tiers, for example a basic waiver with a higher excess, and a premium option that reduces the excess. Names vary by brand, but the key is the same: it affects how much of the repair bill is transferred from you to the rental company.
CDW versus LDW, and why wording matters
You may see LDW (Loss Damage Waiver) instead of, or alongside, CDW. In many US rental programmes, LDW is broader wording that can include both collision damage and theft-related loss, while CDW may focus more narrowly on collision damage. Some companies use the terms interchangeably, and some bundle both concepts under one product name.
For travellers, the practical approach is not to rely on the acronym. Read what the waiver says it covers: collision damage, theft, vandalism, glass, tyres, underbody, towing, and loss of use are all key items to confirm. If you are comparing policies across destinations, pages like car rental in Doral can help you understand how options are presented by location and supplier.
What CDW typically covers
Coverage varies by rental company and by the level of waiver you choose, but Florida CDW commonly relates to these cost areas:
Repairs to the rental car after an accident, impact, or vandalism, subject to exclusions and an excess.
Replacement cost if the vehicle is a total loss, again typically subject to a cap or excess.
Administrative fees may be included in some waivers, but may still be charged in others. Always check the rental terms for “administration”, “processing”, or “claims handling”.
Towing after an accident may be included when damage makes the car undriveable, but not always. If you end up with a flat battery or run out of fuel, that is often treated as roadside assistance rather than CDW.
Some higher-tier waivers also include loss of use, which is the rental company’s claim for revenue while the car is off the road. Loss of use is one of the most misunderstood charges, and it can be significant if not waived.
Common exclusions and limits to check carefully
CDW is not a promise that you will pay nothing. Many Florida rental agreements include exclusions where the waiver can be voided, or where specific damage types are not covered. These are the areas to look for in the terms and conditions:
Excess or deductible. CDW often leaves you responsible for an excess per incident. The excess can be reduced by upgrading, or by separate cover, but it is rarely eliminated without a premium product.
Unauthorised drivers. If someone not listed on the agreement drives and an incident occurs, CDW may not apply.
Driving under the influence, reckless driving, or illegal acts. These typically void the waiver.
Off-road use. Even a sandy access track to a beach can count as off-road in some contracts.
Keys and key fobs. Lost keys, key replacement, and locksmith services are commonly excluded from standard CDW.
Tyres, wheels, windscreen, and underbody. These items may be excluded or only covered in premium packages. Florida roads are generally good, but kerb damage and debris can still happen.
Interior damage. Spills, burns, or pet-related damage may not be treated as collision damage.
Also check whether the waiver has geographic restrictions. Florida renters sometimes plan side trips to neighbouring states. Most agreements allow this, but any restriction should be confirmed before you drive.
CDW is not liability insurance
A critical point for Florida car hire is that CDW does not usually cover damage you cause to other vehicles or property, and it does not cover injuries to other people. That is the role of liability coverage.
In the US, rental packages can include liability in different ways, and minimum state requirements may not match what visitors expect. Make sure you distinguish between cover for the rental vehicle (CDW/LDW) and cover for third-party claims (liability). If you are unsure what is included in your specific rental, review the inclusions list carefully before you arrive at the counter.
How credit cards and travel insurance interact with CDW
Many travellers have a credit card that advertises rental car cover, and some travel insurance policies include rental vehicle excess protection. These can be useful, but they are not identical to rental-company CDW.
Credit card cover can be primary (pays first) or secondary (pays after other cover). In the US, many cards are secondary, which can still leave you dealing with claims processes and possible up-front charges. Some cards also exclude certain vehicle types, long rentals, or specific countries, and may require the full rental to be paid on that card.
Travel insurance add-ons often reimburse the excess you pay, rather than preventing the rental company from charging you. That means you could still have money taken from your card and then claim it back later.
If you want a sense of how different suppliers present protection options across markets, comparing location pages like car hire at Chicago O’Hare can help you recognise common wording and avoid misunderstandings when you return to Florida rentals.
Do you need CDW in Florida?
Whether you need CDW depends on your risk tolerance, your existing cover, and the trip details. Consider these decision points:
Vehicle value and your budget. If you decline CDW and there is damage, you may be liable for the full cost of repairs, plus fees, depending on the contract. Even minor bodywork can be expensive.
Driving environment. Florida has heavy traffic around Miami and Orlando, complex junctions, and intense rainstorms that reduce visibility. These conditions increase the chance of a minor incident even for careful drivers.
Your existing protection. If your card or insurer provides robust, primary cover for rentals in the US, you may decide CDW is less essential. Confirm exclusions in writing before you rely on it.
Convenience. Rental-company CDW can simplify the process after a claim because the rental company deals with repairs directly. Reimbursement-style cover can be cheaper but may involve paperwork and waiting.
Questions to ask before you accept or decline CDW
At the point of rental, clarity matters more than the acronym. Ask, or check in the rental terms, the following:
What is the excess amount for damage and for theft, and is it per incident?
Are tyres, windscreen, roof, and underbody included in this level of waiver?
Is loss of use covered or charged if the car is in the workshop?
Are there administrative fees that still apply even with CDW?
What actions void the waiver, such as unsealed roads or unreported incidents?
What documentation is required after an accident, for example a police report number?
What to do if an incident happens in Florida
If there is damage, act in a way that protects your safety and your documentation. First, move to a safe location if possible and check everyone is okay. If there are injuries or significant damage, contact emergency services.
Next, notify the rental company as soon as you can and follow their instructions. Take clear photos of vehicle damage, number plates, the location, and any relevant road signs. If another vehicle is involved, exchange details. If the police attend, note the report information.
Keep all paperwork. Even with CDW, you may need to show you complied with the agreement. If you have separate cover through a card or insurer, you will likely need the rental agreement, incident report, and repair estimate. For travellers who sometimes switch vehicle sizes, supplier pages such as van hire options at Chicago O’Hare illustrate how protection wording can vary by vehicle category, so check terms when upgrading in Florida too.
Practical CDW tips specific to Florida driving
Inspect the car carefully before leaving, especially bumpers, alloys, and the windscreen. Photograph existing marks and ensure they are recorded.
Understand parking risks. Tourist areas, beach car parks, and hotel garages can be tight. Low-speed scrapes are common, and CDW terms determine how costly these become.
Be ready for heavy rain. Florida downpours can come suddenly. Slow down, increase distance, and avoid driving through standing water, because water damage may not be treated as a collision claim.
Keep the paperwork accessible. If an incident occurs, you will want the rental company contact details and agreement number without searching through emails.
FAQ
What does CDW cover when renting a car in Florida?
CDW usually covers damage to the rental vehicle after a collision or incident, reducing what you owe, often with an excess and exclusions depending on the contract.
Is CDW the same as insurance in Florida car hire?
Not exactly. CDW is commonly a waiver from the rental company rather than an insurance policy, and it typically does not replace liability coverage for damage to others.
Does CDW cover theft of the rental car in Florida?
Sometimes. Theft may be included under LDW or a combined waiver, but in other cases theft protection is separate, so you should confirm the wording and any required precautions.
Can I rely on my credit card instead of CDW in Florida?
Possibly, but check whether your card cover is primary or secondary, what vehicle types are excluded, and whether it covers loss of use and administrative fees.
What is the most common CDW surprise cost in Florida?
The excess and exclusions, especially for windscreens, tyres, underbody damage, and loss of use, which may still be charged unless explicitly waived.
