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What Is Collision Damage Waiver?

Published On Jan 11, 2022, Updated On Feb 18, 2022

Learn more about Collision Damage Waiver and function.

If you want to hire a car from a car rental business, you must understand what collision damage waiver covers before deciding whether or not to acquire CDW insurance. Examine the typical contents of a collision damage waiver. It provides coverage for dents and scuffs on the vehicle's bodywork. It covers the leased vehicle against theft, fire, and vandalism. It covers the costs of towing.

What Is Collision Damage Waiver?

Collision Damage Waiver

A collision damage waiver is a type of extra insurance that automobile rental customers can purchase to protect themselves financially in the event of an accident. If the renter has acquired CDW auto insurance online, he will not be responsible for the cost of the leased car's repair if it is damaged in an accident.

Is Car Insurance with Collision Damage Waiver Required?

If you want to buy a car but can't locate one that fits your budget, renting one might be a good choice. It will not only make life easier for you, but it will also save you money. Furthermore, if you cover the rental automobile with CDW insurance, you will be financially protected to a large extent against the expense of fixing any damages caused by the car's accident. You will be responsible for any damages to your rental automobile if an accident occurs unless you purchase a collision damage waiver. It's possible that this will result in significant financial loss. You won't have to worry about the expense of repairs if you have CDW insurance.

Is Damage Waiver and Car Insurance the Same Thing?

Collision damage waiver is not to be confused with automobile insurance; the former solely covers rental car repairs. An automobile insurance policy, on the other hand, is acquired to cover a car that you have purchased rather than rented. Furthermore, the coverage provided by these forms of insurance is different. A collision damage waiver covers only covers a fraction of the repair expenses incurred by a renter in the case of a rental car accident. An automobile insurance policy, on the other hand, offers more coverage.

Inclusions and Exclusions of Collision Damage Waiver

Before purchase a collision damage waiver, you should know about what all is covered and what all is not covered under a collision damage waiver cover:


Below-mentioned are some aspects which are included under a collision damage waiver cover:

  • Damages to the rented car such as dents, scruffs etc.
  • Theft of the rented vehicle.
  • Cost of towing the insured vehicle towards the nearest garage.


Below-mentioned are some aspects which are not included under a collision damages waiver cover:

  • Damages to the rented vehicles parts such as gearbox, wheels, windscreen etc.
  • Damages to the rented vehicle in case of not abiding with traffic rules
  • Damages to the third party vehicle and their property that may arise during an accident involving the rented vehicle.

Benefits Of Collision Damage Waiver Cover

If you are considering to rent a rent and purchase a collision damage waiver cover, then you can avail the benefits mentioned below:

  • Helps You Save Money: When you choose to purchase a collision damage waiver cover, you eliminate the chances of bearing the expenses of the damages to the rented car that may arise due to an accident.
  • Provides Peace of Mind: With collision damage waiver you can have peace of mind while resting for a night during your road trip as theft of the insured vehicle that is the rented car.

Take Away

It is entirely up to you whether to purchase a collision damage waiver. Take photographs of your rental car when you pick it up from the rental agency, regardless of your decision, especially if you see any past damage. This allows you to document any existing damage on the rental automobile and use it as proof that the car in your possession has not suffered any harm. Also, before opting to get CDW insurance, make sure you have all of your questions answered.

Also read - 5 Tips To Follow To Buy The Right Car Insurance In India

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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