Collision damage waiver (CDW) refers to a policy provided by car rental companies that financially covers damages to the vehicle in case of an accident. However, there are other phrases that can be used in place of CDW. Such alternatives include Loss Damage Waiver (LDW), Physical Damage Waiver (PDW), or Damage Waiver (DW). These interchangeable terms refer to the same policy provided by car rental companies. In essence, whatever name used, it is crucial to understand the coverage offered and its terms and conditions before signing on the dotted line. This helps to avoid unexpected charges, costly repairs, and legal tussles that may arise from collision damage.