The Collision Damage Waiver: Learning The Basics

If you’re new to car hire, you might be looking through the paperwork wondering what half the terminology means. Well, if it’s the Collision Damage Waiver (CDW) you’re unsure about, then you’ve found the right article.

Not knowing the ins and outs of your rental agreement has the potential to cause you serious money problems in the long run, so it’s vital that you take the time to get clued in. Read on to learn what a CDW is and how you can avoid unexpected pay-outs with car hire excess insurance.

What Is It?

Hire companies usually offer a Collision Damage Waiver to their customers as part of the rental agreement – but although it’s a type of insurance, it isn’t always as helpful as it’s made out to be.

Having a CDW means that the company will limit the amount they charge for any damage done to the rented vehicle… however once you read the small print you’ll realise that most CDWs don’t cover all of the components. For example, if the windscreen, tyres or undercarriage get damaged, it’s likely that you’ll be responsible for paying the full repair price.

The Loss Damage Waiver

The Loss Damage Waiver (LDW) operates on a similar principal and so, by default, is similarly unhelpful. It claims to also encompass the costs of replacements, such as if the car is written off or stolen. This might sound like a good deal but, in fact, the excess charge from a LDW can be even higher than that of a CDW.

Expect the Unexpected

Thankfully, there’s a way to get around these unexpected fees – investing in car hire excess insurance. Purchasing this cover on top of what’s already included in your rental agreement is by far the best way to make sure you’re fully protected.

Some car hire excess insurance companies offer fantastic comprehensive cover, so you can be sure that all parts of the vehicle are protected. Many policies even include cover for stolen or damaged personal possessions, sunroof damage and broken, lost or stolen keys.

Making a Claim

If you’ve purchased car hire excess insuranceand want to make a claim, you’ll usually need a number of documents on hand in order for everything to go ahead smoothly. Make sure you have:

• Your rental agreement
• Travel documents
• Receipts and invoices for expenses
• Your driving licence

Top Tip: You may need other documents depending on your insurance provider – be sure to check you have everything before you claim.

With your newfound knowledge of CDWs, LDWs and car hire excess insurance, you’ll no doubt be able to save a few pennies the next time you decide to rent. Plenty of specialists offer low-cost, comprehensive policies, so don’t hesitate to invest – spend a little to save a lot.

Author Plate

Sam Walker is a specialist insurance expert at LowerHire, a company that offers low-cost single trip and annual multi-trip car hire excess insurance policies. Travellers can rest easy knowing they will be fully protected against any hidden hire car costs and look forward to a stress-free rental experience.