What is Collision Damage Waiver (CDW)?

What damage does a Collision damage waiver cover?

A CDW is designed to only cover damage to the body of the vehicle, it doesn’t cover the interior or mechanical parts. It covers items such as side panels, doors, bonnet, back panel, boot cover and wing mirror housings.

What does CDW insurance not cover?

A CDW comes with a long list of exclusions. While exclusions can vary by policy, in most cases, the following are not covered by a CDW:

• Any liability coverage: There is no liability coverage for either bodily injury or property so if you injure a person or a person’s property (their car for example) there is no coverage.

• Risky driving: Any vehicle damage that is caused by risky driving, off roading, drunk driving or even speeding will not be covered.

• Loss or theft: If you lose the vehicle or it is stolen, there is no coverage.

• Glass: This includes all the windows, lights, mirrors, and windshields.

• Tyres: The tyres and wheels are not covered by a CDW.

• Personal belongings: Any personal belongings in the vehicle that are stolen or destroyed in an accident are not covered. This includes the boot and glovebox.

• Keys: If you lose the keys to the vehicle you will have to cover the replacement.

• Battery: If the battery goes flat or is damaged in an accident there is no coverage.

• Interior: The entire interior of the vehicle is excluded, this includes seats, steering wheel, carpet, stereo, and any other items in the interior of the vehicle.

• Additional equipment: Child seats, GPS units, ski or bike racks are all excluded.

• Towing: A CDW does not cover towing charges.

• Gears/motor/transmission: The components that move the vehicle, the engine and transmission are excluded from coverage.

• Agreement violations: If you violate the rental contract and are involved in an accident, the damage would not be covered.

Is Collision Damage Waiver the same as car insurance?

No, a CDW is not insurance, it is added protection that rental car companies (who cannot legally sell insurance policies) offer to their renters.

A CDW is designed to cap your out-of-pocket costs if a rental vehicle is damaged while in your possession. Instead of having to cover the entire cost of repairing the vehicle as well as any losses the rental car company experiences while the vehicle is being repaired, you will only have to pay the agreed upon excess or deductible outlined in the CDW which typically falls between $500 and $3,000.