England Finance

Dec 31 2017

What is a collision damage waiver – CDW.

When you hire a car / van / motorhome / minibus you naturally don’t want to think about accidents, particularly when you are driving a hired vehicle. Unfortunately though, accidents can happen at any time when you are sitting behind the wheel. Unless you have taken out something called collision damage waiver (CDW) then having even a minor accident in a hired car could prove very expensive indeed. Unless you have taken this out in many cases you won’t be given the keys to the rental car.

Collision damage waiver (CDW). sometimes confusingly also called loss damage waiver (LDW). is essentially a form of insurance that may or may not come included in the rental price of a hired car. It exists to provide cover for damage that occurs to the rented vehicle itself.

It is because in some countries and with some hire companies, the basic hire charge only includes a limited form of insurance called third party. This means that anyone else involved in an accident with the vechile you have rented is covered, but the rented vehicle itself isn�t.

If the car only has third party cover then any damage to it will need to be paid for by you the renter. Remember that even if the third party cover also includes theft risk for the rented vehicle, a large dent in the bodywork still won�t be covered and you�ll have to pay.

C ollision damage waiver is the insurance that will provide cover for damage to the rented vehicle; it may be included in the hire price in some cases, or the car hire company may offer it to the renter as a chargeable extra. In either case, it would be prudent to check to ensure what it covers as some CDW policies can exclude damage to certain commonly damaged areas of a vehicle such as tyres, wheels and windows, – all these areas can be expensive to repair if damaged and it will be you the renter that has to pay.

It is also usually a good idea to be clear what excess the policy carries. Collision damage waiver policies sold through the car rental companies may have a hefty excess on them � that is the �first part� of any claim amount that the renter will be expected to pay themselves. It�s not unusual to see this stated to be in the range 500-1500pounds sterling.

If you decide, for peace of mind and security, that you want the best CDW cover possible at the lowest price, then it can be purchased not only from car rental companies but also general insurance companies � often via the Internet.

The CDW policies sold by insurance companies cover a policyholder and not a rented car so they will cover all rented vehicles used by the policyholder within the life period of the policy. This means that the price is often very attractive when compared to similar offerings from the car rental companies and furthermore, they frequently will cover areas of vehicles typically excluded from cover by the rental company�s policy.

For collision damage waiver, as with all insurance, it is usually a good idea to shop around in advance to find the best deal possible. It�s worth doing some Internet searching and familiarising yourself with the offerings available � youcould save some serious money!

When you book your car hire on line there is sometimes an option to decline the CDW – Collission Damage Waiver. You will be given a lower quote, however when you turn up to collect the car, will not be allowed to hire it without paying an additional fee for the CDW. It is normally aimed at US/Canadian credit card holders

According to one major car rental operator in Ireland, if you WAIVE CDR MasterCard Auto Rental Insurance and Canadian Visa Card Auto rental Insurance MAY ALLOW you to waive the cost of Theft Protection and Collision Damage Waiver (CDW) for rental cars in some countries. For Ireland this coverage is ONLY available with a limited number of Mastercard�s issued by a US bank and some Canadian Visa card programs. If you pay for the full rental with your eligible MasterCard card or Canadian Visa Card you may be covered for up to $50,000 Auto rental Insurance for your rental without excess. This insurance may cover the rental vehicle.

This is an insurance program, certain restrictions and exclusions apply. In order to establish if your MasterCard or Canadian Visa includes Auto Rental Insurance in the Republic of Ireland please call your credit card issuer and/or MasterCard/Canadian Visa before making your reservation.

This coverage is a service provided by MasterCard/VISA Canada to the cardholder and therefore it is the card holders responsibility to ensure that they are adequately covered for the entire duration of the rental period. Should you choose to waive our CDW insurance we require written confirmation from your credit card issuer that you have adequate auto rental insurance for the duration of your rental. This must be presented on pick up.

Contact Details for Mastercard and Visa Canada Mastercard can be contacted from the U.S. by calling 1-800-MC-ASSIST. Visa Canada can be contacted from Canada by calling 416.367.8472 In order to establish if your MasterCard or Canadian Visa includes Auto Rental Insurance in the Republic of Ireland please call your credit card issuer and/or MasterCard/Canadian Visa before making your reservation. It is important to confirm to your credit card issuer that the Republic of Ireland as your place of rental.

The major Irish car rental company has informed us that they can not accept Auto Rental Insurance Programs offered by European Banks and Credit card institutions and reserve the right to refuse third party insurers details if not satisfied with the coverage on their rental vehicle.

When you book your car hire on line unless you have checked with your credit card company first, make sure you don’t decline this as it will probably cost you a lot more when you turn up to collect the pre-booked car than had you paid for it when you made the booking.

If you have a credit card which covers your Collision Damage (CDW) � will you need additional cover? You should carefully read the policy that is provided by the credit card company to determine the coverage, ensuring that it covers the country in which you are renting the vehicle, and whether or not there is an Excess (non waiver, deductible) on the policy.

What is the difference between Excess, Super CDW, Non�Waiver and the Deductible? Each car rental company uses different terminology, but they all refer to the same thing. When a car is hired, Collision Damage Waiver and Theft cover are included in the car rental price. There is always an Excess (also referred to as Super CDW, Non Waiver or Deductible) on the CDW and Theft portion of the rental agreement. This amount varies according to the car rental company, the location and the size of the vehicle, and can range from �200 – �2,000

Information supplied byinsurance4carhire.comand an Irish car hire company

Collision damage waiver – how to avoid unexpected bills

What is loss damage waiver?

Questor�s Insurance Jargon Buster – July 2015

CDW Insurance (Collision Damage Waiver) What is it?

More info to see here

Guides on driving abroadClick on an area below

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