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IT is part of the contract you can purchase when you rent a car. If you purchase it it means that provided you have not violated the terms of the contract (say by letting someone not on the contract drive it), if the car is somehow damaged, you will not be asked to pay for the damage. Also check that you do not have to pay any excess - if you cover both you can just walk away if the hire car is damaged.

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Q: What is a damage waiver?
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