When you hire a car / van / motorhome
/ minibus you naturally don't want to think about accidents,
particularly when you are driving a hired vehicle. Unfortunately
though, accidents can happen at any time when you are
sitting behind the wheel.. Unless you have taken out
something called collision damage
waiver (CDW) then having even a minor accident
in a hired car could prove very expensive indeed. Unless
you have taken this out in many cases you won't be given
the keys to the rental car.
damage waiver (CDW), sometimes
confusingly also called loss damage
waiver (LDW), is essentially a form of insurance
that may or may not come included in the rental price
of a hired car. It exists to provide cover for damage
that occurs to the rented vehicle itself.
is because in some countries and with some hire companies,
the basic hire charge only includes a limited form of
insurance called third party.
This means that anyone else involved in an accident
with the vechile you have rented is covered, but the
rented vehicle itself isn’t.
the car only has third party cover then any damage to
it will need to be paid for by you the renter. Remember
that even if the third party cover also includes theft
risk for the rented vehicle, a large dent in the bodywork
still won’t be covered and you’ll have to pay.
damage waiver is the insurance that will provide cover
for damage to the rented vehicle; it may be included
in the hire price in some cases, or the car hire company
may offer it to the renter as a chargeable extra. In
either case, it would be prudent to check to ensure
what it covers as some CDW policies can exclude damage
to certain commonly damaged areas of a vehicle such
as tyres, wheels and windows, - all these areas can
be expensive to repair if damaged and it will be you
the renter that has to pay.
is also usually a good idea to be clear what excess
the policy carries. Collision damage waiver policies
sold through the car rental companies may have a hefty
excess on them – that is the ‘first part’ of any claim
amount that the renter will be expected to pay themselves.
It’s not unusual to see this stated to be in the range
you decide, for peace of mind and security, that you
want the best CDW cover possible at the lowest price,
then it can be purchased not only from car rental companies
but also general insurance companies – often via the
CDW policies sold by insurance companies cover a policyholder
and not a rented car so they will cover all rented vehicles
used by the policyholder within the life period of the
policy. This means that the price is often very attractive
when compared to similar offerings from the car rental
companies and furthermore, they frequently will cover
areas of vehicles typically excluded from cover by the
rental company’s policy.
collision damage waiver, as with all insurance, it is
usually a good idea to shop around in advance to find
the best deal possible. It’s worth doing some Internet
searching and familiarising yourself with the offerings
available – you could
save some serious money!
you book your car hire on line there is sometimes
an option to decline the CDW - Collission Damage Waiver.
You will be given a lower quote, however when you turn
up to collect the car, will not be allowed to hire it
without paying an additional fee for the CDW. It is
normally aimed at US/Canadian credit card holders
to one major car rental operator in Ireland, if you
"WAIVE CDR" MasterCard
Auto Rental Insurance and Canadian Visa Card Auto rental
Insurance MAY ALLOW you to waive the cost of Theft Protection
and Collision Damage Waiver (CDW) for rental cars in
some countries. For Ireland this coverage is ONLY available
with a limited number of Mastercard´s issued by a US
bank and some Canadian Visa card programs. If you pay
for the full rental with your eligible MasterCard card
or Canadian Visa Card you may be covered for up to $50,000
Auto rental Insurance for your rental without excess.
This insurance may cover the rental vehicle.
is an insurance program, certain restrictions and exclusions
apply. In order to establish if your MasterCard or Canadian
Visa includes Auto Rental Insurance in the Republic
of Ireland please call your credit card issuer and/or
MasterCard/Canadian Visa before making your reservation.
coverage is a service provided by MasterCard/VISA Canada
to the cardholder and therefore it is the card holders
responsibility to ensure that they are adequately covered
for the entire duration of the rental period. Should
you choose to waive our CDW insurance we require written
confirmation from your credit card issuer that you have
adequate auto rental insurance for the duration of your
rental. This must be presented on pick up.
Details for Mastercard and Visa Canada Mastercard can
be contacted from the U.S. by calling 1-800-MC-ASSIST.
Visa Canada can be contacted from Canada by calling
416.367.8472 In order to establish if your MasterCard
or Canadian Visa includes Auto Rental Insurance in the
Republic of Ireland please call your credit card issuer
and/or MasterCard/Canadian Visa before making your reservation.
It is important to confirm to your credit card issuer
that the Republic of Ireland as your place of rental.
major Irish car rental company has informed us that
they can not accept Auto Rental Insurance Programs offered
by European Banks and Credit card institutions and reserve
the right to refuse third party insurers details if
not satisfied with the coverage on their rental vehicle.
you book your car hire on line unless you have checked
with your credit card company first, make sure you don't
decline this as it will probably cost you a lot more
when you turn up to collect the pre-booked car than
had you paid for it when you made the booking.
you have a credit card which covers your Collision
Damage (CDW) – will you need additional cover?
You should carefully read the policy that is provided
by the credit card company to determine the coverage,
ensuring that it covers the country in which you are
renting the vehicle, and whether or not there is an
Excess (non waiver, deductible) on the policy.
is the difference between Excess, Super CDW, Non–Waiver
and the Deductible? Each car rental company uses different
terminology, but they all refer to the same thing. When
a car is hired, Collision Damage Waiver and Theft cover
are included in the car rental price. There is always
an Excess (also referred to as Super CDW, Non Waiver
or Deductible) on the CDW and Theft portion of the rental
agreement. This amount varies according to the car rental
company, the location and the size of the vehicle, and
can range from £200 - £2,000
you hire a car you need two types of insurance. One
is Third Party which covers you for any damage or injury
you may cause to someone else when driving the hire
car. The second is Collision Damage Waiver Insurance
(CDW) and this covers you for any damage to the hire
car itself while it is in your care.
important thing to remember with collision damage waiver
insurance is that even if you have paid out and bought
cover from the car hire company, you still may not be
completely covered. In fact you could still be liable
to pay out considerable sums of money in the event that
you have an accident and damage the hire car.
is because as with many types of insurance buying the
basic insurance does not mean that you are fully covered.
Insurance often comes with excesses and collision damage
waiver insurance is no exception.
this means for your rental is that if you are unlucky
enough to have an accident in the hire car your collision
damage waiver insurance may only cover part of the costs
and you would be responsible for the remainder. How
much the remainder would be depends obviously on the
amount of damage but also on the size of the excess.
an example, your collision damage waiver policy has
an excess of £500 GB pounds and you unfortunately
cause damage to the car that the insurers say will cost
£750 GB pounds to repair. In this case, the insurance
company will charge the whole of the excess amount to
your credit card and they will contribute only £250
GB pounds. It may be worth pointing out here that excesses
can be as much as £1,500 GB pounds.
area where you can find yourself liable for costs is
if you cause damage to the parts of the car normally
excluded from insurance policies. These parts are the
windscreen, tyres, roof and undercarriage; easy to damage
and expensive to fix, particularly if you have no say
in who does it or at what cost.
can of course extend the cover of your collision damage
waiver policy by buying additional insurance to remove
or at least reduce the excess and possibly even include
you may find though is that if you take the additional
insurance offered by the car hire company you will end
up paying a lot of money for the additional peace of
mind of knowing that you are adequately insured.
may find that the car hire insurance offered by the
specialist insurers will be significantly cheaper than
the equivalent insurance offered by the car hire company.
if you rental deal includes a basic form of collision
damage waiver insurance you can still buy any additional
policies elsewhere and benefit from significantly lower
prices. Many specialist policies may even include those
'exclusions' such as the tyres, windscreen etc as standard.
damage waiver - how to avoid unexpected bills
you have hired a car and taken out the appropriate insurance,
you may understandably think that there is little or
no possibility of 'unexpected costs' coming from the
car rental company. Unfortunately you could be mistaken
- even if you have purchased from the hire company something
called Collision Damage Waiver insurance.
damage waiver or CDW, is a form of insurance that covers
you, the renter, against any costs arising from an accident
than damages the rental car. CDW may be included in
the rental price or in some countries, most notably
the USA, the rental company may offer it to you as a
separately chargeable option.
the rental company have not bundled CDW into the rental
price, it may be worth thinking about buying it from
specialist provider of car rental insurance. Such
companies operate in the open insurance marketplace,
usually on the Internet and often sell various forms
of rental car insurance at far cheaper prices than the
car rental companies.
to look out for:
you have taken or purchased your collision damage waiver
insurance from a car rental company, you may have to
watch two aspects of their policy cover and this is
where the risks of unpleasant surprises and additional
costs come from.
is highly likely that their insurance will not cover
all areas of the rented vehicle and may exclude the
wheels, tyres, windows, undercarriage and roof. The
second potential issue relates to the subject of policy
excess. The car rental company's policy will almost
certainly carry excess to the value of 500 to 1500 pounds.
That is the amount the rental company could bill you
following an accident as your 'obligatory contribution'
towards the cost of any accidents even if you have their
insurance in place.
even if you have only a minor accident AND you have
the rental company's collision damage waiver cover in
place, you could still find yourself with a large and
unexpected charge to your credit card for repairs. This
does happen and when it does, the amounts can be high
- so be warned!
can pay the car rental company for additional insurance
that may reduce or remove the excess and possibly cover
the often-excluded areas of the vehicle.
good news is that if you have purchased your CDW from
a specialist provider then there may be no areas of
the vehicle excluded from their policy and another large
bonus is that their policy may also not carry excess.
This could work out far cheaper than paying for additional
'top-up' insurance through the rental company.
final point relating to the collision damage waiver
products sold by the specialist insurance providers
is that they are sold for a period of time (a daily
or annual basis) rather than a specific car rental.
What this means is that the policyholder can use their
insurance to cover any vehicle they rent during the
lifetime of the policy, with the exception of some specialist
vehicles such as sports cars or those over $100,000
US dollars in value. It may be worth finding out more
through one of these web sites if you're interested
in saving yourself a lot of money.
Damage Waiver (LDW) is a type of insurance cover for
rental cars. It can also be known as Collision Damage
Waiver (CDW). It typically covers the loss of, and damage
to, your hire car and generally includes theft.
it isn't really insurance, it works in pretty much the
same way. You could look at it from the point of view
that since the hire car doesn't belong to you, you can't
insure it but you are responsible for any damage that
happens to it during the period of your rental.
owners (the car rental company) may typically try to
sell you a release from this responsibility known as
loss damage waiver. With this they 'waive' their right
to charge you for repairs.
of this nature is very like insurance in that it typically
carries an excess, which is the amount of money that
you agree to pay to the car hire company in the event
that the hire car is damaged while on rental to you.
addition to the excess you may find that loss damage
waiver excludes the windscreen, the tyres, the roof
and the undercarriage from its cover. This means that
if you damage any of these parts during your rental
then you would still be responsible to pay for their
repair. These costs would be separate to any excess
charges due for damage to other parts of the car.
like many, you feel that the potential expense in these
circumstances is unacceptable, then you may choose to
buy some excess insurance to top-up the loss damage
waiver cover. If you then damaged the car, you would
claim on this policy for the excess that you would be
responsible for paying.
may find that the excess insurance offered by the car
hire companies is more expensive than that available
from other sources. Happily there can be cheaper cover
out there which often has the added benefit of covering
those excluded parts as well and at no extra cost.
can find it on the web site of some of the Internet
based car hire insurance providers. These specialists
can also supply policies specifically tailored for rentals
in the UK, Europe, USA or other destinations worldwide.
also offer longer-term annual cover that may be of special
interest if you rent cars frequently. An annual policy
would provide you with excess cover for all of your
rentals in the course of a year (one at a time of course).
specialist providers tend not to cover the more exotic
makes of car such as sports or vintage models or very
high value vehicles.
They can also offer LDW (Loss Damage Waiver) cover for
USA rentals (and some other destinations worldwide)
that again may be very much cheaper than the cover you
could buy at the car rental desk.
simply buy your policy from the specialists in advance
of your rental and take the policy details with you,
as your car hire company may need them to contact your
insurer if you have an accident.