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If you pay for a collision damage waiver, it could be your ticket out of responsibility for damaging your rental car. However, you don’t get to waive responsibility for every situation, especially if you violate the rental agreement terms and conditions. In some cases, you might not need the waiver if you already have coverage in other places.
A collision damage waiver is a type of agreement that waives your financial responsibility for loss or damage to the rental car you use. The coverage kicks in for damage you cause to the car as long as you don’t break the rental agreement’s terms and conditions.
If you’re getting coverage from a rental car or travel insurance company, you’ll have to pay for the coverage up front and sign the necessary paperwork. The collision damage waiver (CDW) may also be called a loss damage waiver (LDW) interchangeably.
A collision damage waiver generally covers the following:
Paying for a collision damage waiver can be worth it in some situations. Before being confronted with this option at the rental counter, you can research whether your car insurance covers rentals or your credit card offers rental coverage. Read through the exclusions and terms and conditions to understand if that coverage is similar to what the rental company offers. If so, you may not need a CDW.
But because there are so many exclusions, a collision damage waiver may provide the extra protection you need. You may be able to walk away from damage without paying a deductible or filing a claim. On the other hand, car insurance that extends to rental cars can offer wider coverage if you’re at fault for any reason.
Consider using multiple options if you’re looking for broad coverage. That way you have the least chance of paying for damage out of pocket.
A typical collision damage waiver can cost you an extra $10 to $30 per day. Although this cost can significantly increase your car rental cost, weigh the benefits of buying this coverage:
Exclusions to the damage waiver vary by car rental company but may include:
You can find coverage for your rental car in several places:
You might opt for the collision damage waiver if you don’t have enough coverage from your current car insurance or credit card company. It can also relieve you of the stress involved with filing a claim yourself if you damage does happen to your rental. However, consider coverage from travel insurance since you could get extra coverage for your trip along the way.
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