Collision damage waiver (CDW) provides comprehensive protection when renting a car. In essence, the car hire company waives its right to charge a high excess if its vehicle is damaged or stolen. In return, you pay an excess fee, limiting your liability so you won’t be hit with a massive bill and giving you peace of mind.
What is covered by a collision damage waiver?
CDW typically covers damage or theft of a rental vehicle in addition to loss-of-use charges the rental company can impose while the car is being repaired.
It is crucial to note that CDW only covers the rental vehicle’s bodywork. Consequently, you may need to take out additional insurance to cover other eventualities, including loss of personal belongings, lost keys, and damage to windows, mirrors, lights, and tyres.
Always read the agreement carefully to understand the charges you are liable for, even if you have CDW cover. Keep your paperwork safe and carry copies detailing how to make a claim.
Is CDW the same as car hire excess insurance?
It is important to note that car hire excess insurance and CDW are not the same. Knowing this distinction can help you decide on the cover you need when renting a car.
Collision damage waiver cover protects you against paying the total cost if your hire car is stolen or damaged. Car hire excess insurance, which is available from specialists such as https://www.moneymaxim.co.uk/insurance/vehicle-hire/car-hire/excess-insurance/, insures the excess you pay on any insurance you take out. In the event of an accident or damage, you will be reimbursed for your excess.
To avoid pressure selling or expensive policies, arrange standalone car hire cover before renting
Do you need collision damage waiver cover?
There are some essential points to consider when buying CDW cover; for example, without CDW in place, you could be liable for the entire cost of the vehicle. CDW may also be a legal requirement in the country you are visiting.
You may also need to take out supplementary liability insurance (SLI), which is the equivalent of third-party insurance.
