What Is CDW Insurance?

If you've hired a car or van before, you've probably come across the term CDW insurance. While it sounds complicated, CDW is actually a standard part of many vehicle hire agreements and helps protect you from certain costs if the vehicle is damaged during your rental period.

Understanding what CDW insurance is and what it covers can help you make informed decisions when hiring a vehicle.

What Does CDW Stand For?

CDW stands for Collision Damage Waiver.

It's important to note that CDW is not technically insurance. Instead, it's an agreement between you and the vehicle hire company that limits your financial responsibility if the hire vehicle is damaged.

Without CDW, you could be liable for the full cost of repairs if the vehicle is involved in an accident or suffers damage while in your possession.

What Does CDW Cover?

A Collision Damage Waiver typically covers damage to the hire vehicle caused by:

• Road traffic accidents
• Collisions with other vehicles
• Accidental impacts with objects
• Minor bodywork damage

The exact level of cover can vary between hire companies, so it's always worth checking the terms and conditions before booking.

What Isn't Covered by CDW?

While CDW can significantly reduce your liability, it doesn't usually cover everything.

Common exclusions include:

• Damage to tyres
• Damage to windscreens or glass
• Damage to mirrors
• Interior damage
• Lost keys
• Incorrect fuel use
• Negligent or reckless driving

These exclusions can vary depending on the rental agreement and any additional protection packages selected.

What Is an Insurance Excess?

Even when CDW is included, you'll normally be responsible for an insurance excess.

The excess is the maximum amount you would need to contribute towards repair costs following a claim.

For example, if the excess is £1,000 and the vehicle suffers damage, you may still be liable for up to £1,000 of the repair cost, with the remainder covered under the rental agreement.

Can You Reduce the Excess?

Many vehicle hire companies offer excess reduction options.

By paying an additional daily fee, you can often reduce the amount you're liable for if damage occurs during your hire period.

This can provide extra peace of mind, particularly for longer hires or when driving an unfamiliar vehicle.

Is CDW Included With Van Hire?

In many cases, yes. Most reputable vehicle hire companies include Collision Damage Waiver as part of the rental package, although the excess amount and terms may vary.

Before collecting your vehicle, it's always a good idea to:

• Review the rental agreement
• Understand the excess amount
• Check for any exclusions
• Inspect the vehicle and report existing damage

Final Thoughts

CDW, or Collision Damage Waiver, is designed to reduce the amount you could be required to pay if a hired vehicle is damaged during your rental period.

While it doesn't cover every situation, it can offer valuable protection and help avoid unexpected repair costs.