Bond, excess, CDW, excess reduction, damage waiver, most rental car paperwork throws several similar-sounding terms at you at once, and they genuinely mean different things. Understanding the difference before you get to the counter is the easiest way to avoid an unpleasant surprise if anything goes wrong with the car.<\/p>\n\n\n\n
These two get confused constantly, so it’s worth being precise:<\/p>\n\n\n\n
Every rental in Australia comes with some form of basic damage cover included in the price, often called CDW (Collision Damage Waiver) or LDW (Loss Damage Waiver). The name makes it sound comprehensive, but it isn’t. Basic CDW simply caps your liability at the excess amount, it doesn’t eliminate it. If the standard excess on your booking is $5,000, that’s genuinely what you could be liable for if something happens, even with CDW included.<\/p>\n\n\n\n
This is where “excess reduction” or “excess waiver” products come in, an add-on, usually offered at the counter or during online checkout, that lowers your potential liability from the standard excess down to a much smaller amount, sometimes to zero.<\/p>\n\n\n\n
A few things worth knowing before you buy one at the counter:<\/p>\n\n\n\n
Your first step is to address it directly with your car rental company. Failing that, most companies subscribe to the AFIA Car Rental Code<\/a>, which sets clear customer service and business practices for major vehicle hire companies in Australia.<\/p>\n\n\n\n\n\n