Collision Damage Waiver otherwise known as cdw insurance is a common type of security measure used while renting cars. This type of insurance restricts the amount of money which a rental agency can claim from you in case the car encounters any damage when it is with you. CDW comes in different variations depending on the rental company. Some credit cards also offer primary or secondary collision damage coverage. Check out www.forbes.com/sites/johnnyjet/2017/03/06/which-credit-card-is-best-for-car-rental-purchases/#32ab15fc3102 to know more.
What is covered by CDW?
CDW generally covers only the damages to the car body and engine excluding wheel work, mirrors, windows, personal properties in the car, extra elements like a child seat, GPS, etc. It Would not cover the cost required for towing the car as well. What CDW covers and not covers vary significantly from one company to another. So, they cannot be generalized as such.
How is Collision Damage Waiver different from insurance?
Collision Damage Waiver is not exactly same as insurance. It is actually a deal between you and the rental company in which they give up their right to transfer the complete accountability of damages to you. Instead of asking you to pay for the entire damage, they ask you to pay only certain amounts known as deductible or excess. You will have to pay more if the damages are more. If the damage is on the parts which are not covered under CDW, then you will have to pay the full amount required for repair.
CDW and other types of insurance coverages
In addition to CDW, there are two other types of insurance which every hired car possesses. They are liability coverage and theft coverage. Liability insurance helps you when you accidentally cause damage to any person or property with a rented car. It pays the repair or compensation charges on your behalf. Theft coverage restricts the amount of money which can be claimed from you in case the car gets stolen or gets damaged in an attempt of theft. These three coverages would be included in your rental package or would come with your credit card insurance, or you should purchase them at the hiring counter.
Additional insurance coverages
In addition to the types discussed above, you have the option to buy extra insurance coverages from the rental counter. You would have to pay extra for the same, and the cost would vary depending on the type of the rented car, the duration of the rental and also on the rental company. Buying such extra coverage would reduce your financial risks in case of any accidents. Depending on the coverage you take, sometimes you may not have to pay anything for repairing purpose.
These optional plans come under different names for different companies. So, check with the employee at the counter about the detail of each plan and choose one if you feel that is good. Remember that these additional coverages are not compulsory legally, but they are meant to provide you extra protection. So, go for them if you feel they are worthy of your money!