collision damage waiver (2024)

FAQs

Does collision damage waiver cover everything? ›

Collision damage waiver (CDW), also called car rental insurance, removes a car renter's liability for all or some damage to a rental vehicle in an accident, similarly to collision insurance. CDW also may cover instances of theft or vandalism. The renter will normally only have to pay for a deductible in an accident.

Damage Waiver protects you in the event of damage to or theft of the vehicle and lowers the amount you are liable for. It may be included in the cost of your hire and have an excess dependent on the vehicle category. It means your financial responsibility is limited should something go wrong.

A CDW may also be worth considering if you: Simply want to be sure you're not responsible for any extra charges due to vehicle damage. Don't want the hassle of identifying coverage gaps in your auto insurance and credit card coverage.

A collision damage waiver typically covers losses from any damage to a rental car while in your possession. For example, if you drive around town and get into a fender bender, you won't have to pay anything out of pocket for repairs. A CDW will usually also cover the following types of car damage:2. Accident.

Damage Waiver Fee: The renter pays a fee for the damage waiver insurance, often calculated as a percentage of the rental cost (10-15%). Coverage: During the rental period, the equipment is covered by the insurance policy.

The main difference between a damage waiver fee and a security deposit is that a damage waiver fee is non-refundable and only covers unintentional damage while a security deposit is refundable and also covers intentional damage and missing items.

While the cost of a CDW (or LDW) will vary by rental car company, vehicle class, and even rental period, pricing typically ranges from $5 to $40 per day on top of your rental fees. Another option for rental car protection is to use a credit card that offers primary or even secondary coverage.

Does a CDW cover scratches? It depends on the company. For example, Enterprise, one of the largest car rental companies in the world, says its damage waiver covers minor damage, such as scratches and dents.

What's the difference between LDW and CDW? CDW covers damage to the rental vehicle in case of an accident. LDW offers the same protection, as well as coverage if the car is stolen. Since these terms are sometimes used interchangeably, pay attention to the fine print to know what kind of coverage you're getting.

No, car hire excess insurance is different to a collision damage waiver (CDW). A CDW means you don't have to pay the full cost of damage to your hire car if you're in an accident. Car hire excess insurance covers the excess you pay on your insurance claims (an amount of a claim you have to pay yourself).

What is a super collision damage waiver? ›

Collision Damage Waiver (or CDW) is an important part of most rental contracts. This limits the maximum financial liability to the customer for any damage to the rental vehicle, as long as the terms and conditions are adhered to during the rental period.

Rental car insurance can be expensive — it can easily double your rental costs if you purchase a full coverage package. You also technically don't need to purchase insurance since rental cars are automatically covered for the minimum requirements in their state. However, it can still be worth it in some situations.

Car-Rental Company CDW

This coverage technically isn't insurance — it's a waiver: The car-rental company waives its right to collect a high deductible from you in the event the car is damaged. Note that this "waiver" doesn't actually eliminate the deductible, but just reduces it.

Damage Waiver protects you in the event of damage to or theft of the vehicle and lowers the amount you are liable for. It may be included in the cost of your hire and have an excess dependent on the vehicle category. It means your financial responsibility is limited should something go wrong.

CDW insurance typically covers any damage to a hired vehicle while in your possession, such as driving in a city and getting into a fender bender. It also covers theft of the vehicle and vandalism.

A collision deductible waiver may make sense if you choose a high deductible for your collision coverage. Auto insurance deductibles typically range from $100 to $2,500. If you have a deductible at or above $1,000, then a CDW could save you a significant amount if an uninsured motorist damages your vehicle.