The CDW (collision damage waiver, or LDW, loss damage waiver) sold aggressively at the car rental desk may be referred to as "rental car insurance." It's actually the rental company agreeing, for a fee, to waive or overlook the driver's responsibility in the event of any loss or damage to the rental vehicle.

There are other ways of handling this risk, as outlined at the bottom of this article, but one that the renter may overlook is coverage under their existing auto policy. In this article only loss or damage to the rented vehicle is considered, not third party liability (damage to property of injury to persons).

This type of loss or damage rental insurance may already be on the policy, in which case the additional cost is NIL. Or the endorsements can be added for the period of the rental for a minimal cost.