A Collision Damage Waiver (CDW) is a type of insurance policy, designed to reduce your liability for damage if your rental vehicle is stolen or damaged. All vehicles for hire will have a standard excess amount which you, as the hirer, will be liable to pay should the vehicle be returned with damage or involved in an accident. However, this standard excess liability can be reduced should you wish to take our CDW.

Just like a normal insurance policy, the price of Collision Damage Waiver insurance for a hire car will vary from company to company. At Caversham Vehicle Hire, the following charges apply for a CDW:

• Cars: From £10 per day, or £70 per week.
• Vans: From £11.50 per day, or £80.50 per week.
• Lutons: £20 per day or £140 per week.

In this blog, we’ll outline everything you need to know about a Collision Damage Waiver (CDW), from what it includes, to the benefits of choosing this insurance option. To find out more about the self-drive vehicle hire insurance and CDW we offer here at Caversham Vehicle Hire, please get in touch with our team.

Is a Loss Damage Waiver (LDW) the Same as a Collision Damage Waiver (CDW)?

Yes, a Loss Damage Waiver (LDW) is the same as a Collision Damage Waiver (CDW). If your hire car is stolen or damaged and you do not have LDW or CDW coverage, you will be responsible for covering the full cost of the excess payment. This cost varies depending on the type of vehicle.

Deciding whether to purchase CDW or LDW insurance is a personal choice. At Caversham Vehicle Hire, we recommend weighing the potential risk against the additional cost. While no one hopes to need insurance, having it provides significant peace of mind compared to not having it.

What Does a Collision Damage Waiver Cover?

The coverage provided by a Collision Damage Waiver (CDW) can vary from one rental company to another. It is crucial to carefully review the specifics of your CDW and to ask questions if any details are unclear.

Generally, a CDW will also typically cover the administrative costs associated with making a claim, vehicle recovery and daily lost revenue while the vehicle is being repaired. However, please be aware as the driver or hirer you will need to be fully co-operative with the Rental Company to mitigate their losses/claims.

For more detailed information about what’s included in Collision Damage Waiver insurance for a hire car, please get in touch with our team.

Is a Collision Damage Waiver (CDW) the same as Insurance?

No, a Collision Damage Waiver (CDW) is not the same as insurance. A CDW is a provision in your car hire contract that limits your financial responsibility for damage to the rental vehicle. It is separate from traditional car insurance coverage.

If you have any disputes regarding your CDW, you will need to resolve them directly with your car hire company. On the other hand, insurance companies are regulated by the Financial Conduct Authority (FCA), which allows you to file complaints free of charge if you believe you have been treated unfairly.

Does a Collision Damage Waiver Cover Third Party?

A Collision Damage Waiver (CDW) only protects the rental vehicle, not third parties.

Third-party liability insurance, which covers damages or injuries to others, is separate and required by law.

To ensure you’re fully covered, always verify the details of the rental company’s insurance policies and consider purchasing additional coverage if needed.

What Are the Benefits of Opting For a Collision Damage Waiver (CDW)?

Opting for a Collision Damage Waiver (CDW) when renting a vehicle offers several benefits, including:

– Reduced Financial Liability
The primary benefit is that it limits your financial responsibility in the event of an accident or damage to your hire vehicle. Without a CDW, you could be liable for the full excess costs.

– Peace of Mind
With a CDW, you can drive with greater peace of mind, knowing that potential repair costs are covered. This allows you to focus on your trip, driving safely without worrying about potential financial repercussions.

– Lower Excess Fees
CDWs often include a lower excess fee.

At Caversham Vehicle Hire, taking out rental car excess waiver insurance reduces the excess from £500 to £200. Or in the case of larger vans or minibuses, it can reduce your excess liability from £1,100.00 to £750.00

– Comprehensive Coverage
A CDW often covers a wide range of potential damages, including collision damage, theft and vandalism.

To find out more about what our CDW covers, please get in touch.

Is it Worth Getting a Collision Damage Waiver?

Ultimately, if you choose not to purchase a Collision Damage Waiver (CDW), you will be solely responsible for covering the full standard excess cost. This can be an expensive proposition, so consider your options carefully before declining coverage.

At Caversham Vehicle Hire, we are committed to providing our customers with comprehensive car hire insurance and CDWs for all vehicle hire options.

Terms For Providing Your Own Insurance

If you have indicated in your Rental Agreement that you wish to provide your own insurance for the vehicle, the following terms apply:

– You are responsible for insuring the vehicle from the moment you take possession until the time it is returned to us.

– You authorise your insurer to communicate with us and provide all the necessary information. You also authorise us to manage any claims related to the vehicle and to negotiate and settle them with your insurer.

– You must not use the vehicle in breach of the insurance policy.

– You must insure the vehicle on a fully comprehensive basis with a reputable insurance company.

– If the amount we receive from the insurance company is less than the loss we incur, you must pay the difference.

Understanding Your Coverage

Please note that our car hire insurance does not provide complete coverage. The amount you are not covered is called the excess. This can be reduced by purchasing a CDW. The Rental Agreement will indicate whether you have accepted or declined this option, along with the excess amount not covered.

To find out more about Collision Damage Waiver insurance for hire vehicles, please get in touch with our team. Call us on 01189476500 today!