What Is Collision Damage Waiver Insurance For Car Rentals?

When you rent a car, you may be offered something called Collision Damage Waiver (CDW) insurance. This is an optional insurance policy that can help protect you from financial loss if the car you rent becomes damaged or stolen while in your possession.

The CDW insurance policy will usually cover up to a certain amount of the repair or replacement cost of the vehicle in the event of an accident or theft. This coverage is often referred to as “gap” coverage, since it can help pay for any expenses that exceed the actual value of the rented vehicle. In some cases, it may also cover the cost of any towing charges associated with the accident.

What Does CDW Insurance Cover?

CDW insurance typically covers the cost of repairs to the rental vehicle if it is damaged in an accident or stolen. It may also cover the cost of towing and storage fees, as well as loss of use charges, if the vehicle is disabled as a result of the accident.

It’s important to understand that CDW coverage does not cover any damage caused by driver negligence or intentional acts. It also does not cover any personal items that may have been left inside the vehicle.

Do I Need CDW Insurance?

Whether or not you need CDW insurance depends on a few factors. For instance, if you already have an auto insurance policy that includes collision coverage, it may be redundant to purchase CDW insurance. Similarly, if you have a credit card that offers CDW coverage, you may not need to purchase additional coverage.

On the other hand, if you don’t have an auto insurance policy that includes collision coverage or a credit card that offers CDW coverage, your best bet is to purchase the CDW insurance offered by the rental car company. This will help protect you financially in the event of an accident or theft.

Conclusion

In conclusion, Collision Damage Waiver (CDW) insurance is an optional insurance policy that can help protect you from financial losses in the event that the rental car you are using is damaged or stolen. It typically covers the cost of repairs to the rental vehicle, as well as any towing and storage fees associated with the accident. Whether or not you need CDW insurance depends on a few factors, including whether or not you already have an auto insurance policy that includes collision coverage or a credit card that offers CDW coverage.