Vehicle hire: what is a collision damage waiver (CDW)?
What is a collision damage waiver when hiring a car? Learn about this handy financial safeguard in our guide.
We believe that vehicle hire shouldn't be stressful, whether you're renting a replacement work van, a family car for a weekend away or a minibus for a field trip.
MVH always has you covered with the best-value car hire in Tyne and Wear. But are you covered if the worst happens?
Chances are, you'll have other things on your mind the day of your rental, so here's a quick guide to collision damage waivers (CDWs).
You'll learn what they are and why they're useful so you can drive away with complete peace of mind.
What is a collision damage waiver?
First things first, what is a CDW?
It's quite simple, really. A CDW is a type of insurance policy that covers the period for which you have responsibility for the hire vehicle. It removes financial responsibility from you, the hirer, for the repair cost of physical damage if the vehicle is involved in an accident.
If there is collision damage and you have a CDW, the rental company will ask for a payment equal to the excess you've agreed to. You're not usually responsible for any further costs.
How much does a collision damage waiver cost?
Just like a normal insurance policy, the price will vary based on a few key factors like the value of the vehicle you're hiring and where it will be driven.
Some firms, for an additional fee, will also offer an excess waiver on its policy. This means there's nothing for you to pay towards repairs as you've guaranteed this at the start of the hire.
What does a collision damage waiver cover?
It varies from company to company. Be sure to check what's covered when taking out your CDW.
Our insurance covers accidental damage. However, it doesn't cover the following even if a CDW has been purchased on the hire vehicle:
- Damage above door height
- Tyres (charged at the cost of repair or replacement)
- Wheels
- Windows and windscreens (cost of repair or replacement)
- Misfuelling (filling up with the wrong type of fuel)
- Lost, stolen or damaged keys – this requires the vehicle to be recoded with an average cost of £300
Before you hire, you'll be asked to agree to these exceptions on the rental agreement.
All of our cars have an insurance excess of £1,000. Larger vehicles, such as vans and minibuses, carry excesses between £1,250 and £2,500. Purchasing a CDW will reduce the excess you're expected to pay.
What else is covered?
If you purchase a CDW from your rental company, your policy will normally cover the administrative costs associated with making a claim and vehicle recovery.
The same goes for what's often called "loss of use". This refers to the cost incurred by a rental agency when it's unable to rent out the vehicle due to damage.
Is a collision damage waiver worth it?
Now you understand what a CDW is, let's cut to the chase. Is it worth the price?
Forking out that little bit extra for your hire car has the potential to save you time, money and stress. In all likelihood, you won't have an accident – but a CDW is peace of mind for the worst-case scenario. If you do end up in a collision, you won't have to worry about parting with your hard-earned cash – or, at least, not much of it.
Before you pay for a CDW, however, it's worth checking that you're not already covered. You may have an existing third-party policy in place. These are often offered with credit cards or with other types of insurance policies like home and car insurance.
Scrutinise these policies carefully, though. You don't want to enter into a rental agreement believing that you're covered, only to find out later that you have to pay.
More collision damage waiver FAQs
Is a CDW the same as car insurance?
No. A CDW is part of your hire contract and is separate from any car insurance cover. The CDW is offered by the hire car company rather than a third-party insurer or broker.
Then again, it doesn't really matter whether it's called insurance or not. Much like insurance, it serves to stop unexpected bills – bills that can spoil the memory of a great holiday.
Does a collision damage waiver cover all repair costs?
No. Like most types of insurance or coverage, a collision damage waiver almost always has an excess attached. The excess is the maximum that the renter will pay towards bodywork repairs. It varies depending on the type of vehicle – usually, it lands somewhere between £500 and £2,500.
Who qualifies for a collision damage waiver?
You don't need to qualify for a CDW. Anyone renting a car can opt in when booking or at pick-up, so long as they're eligible to hire the car.
How long does the cover last?
A CDW covers you for the entire rental period, 24/7. It even applies when you're not in the vehicle.
Is a loss damage waiver worth it?
Yes – if you're not covered elsewhere, a CDW could save you time hassle and money.
If you're looking to rent a car, van or minibus in the North East, choose MVH Rental for cheap rates and friendly service. Browse our rental vehicles to get started.
