| Collision Damage Waiver (CDW) Insurance (also | | | | of cover for a week may be around €50, so |
| referred to as Damage Waiver Insurance) is a | | | | the hirer is paying €50 to potentially save |
| type of rental car insurance which covers the | | | | €500 if damage occurs. |
| hirer against paying an excess figure in the event | | | | Some forms of damage to the rental vehicle may |
| of damage to the hired vehicle. The excess | | | | be excluded by CDW Insurance policies. Often |
| amount is typically a few hundred Euros for a | | | | tyre damage, loss of keys, interior upholstery |
| small car, rising to as much as one thousand | | | | damage and glass damage may not be covered. |
| Euros for larger rental vehicles. | | | | Also if the hirer is over the legal alcohol limit for |
| Although some rental vehicle insurance policies | | | | the country, damage caused to the vehicle will |
| include "zero excess" or "full cover", the price of | | | | not be covered. |
| the rental contract usually reflects this. Many | | | | Some rental companies offer additional insurance |
| people will look to find the cheapest possible | | | | to cover types of damage to the rental vehicle |
| quote, and not pay for any additional insurance. | | | | which are excluded from the CDW policy. Terms |
| The cost of CDW insurance can add up to 20% | | | | such as "Super Insurance", "Full Insurance" or |
| to the rental vehicle hire price. In Europe most | | | | similar may be used to describe this additional |
| countries will require that the vehicle has 3rd | | | | cover. It is always worth checking with the rental |
| party insurance by law, so the lowest quote | | | | company what is not covered by the policy. |
| prices are likely to be 3rd party, fire and theft | | | | In the event of an accident or damage to the |
| with a high CDW excess figure. By purchasing | | | | rental vehicle it is usually required that the hirer |
| CDW insurance for the rental vehicle, the hirer will | | | | obtains a police report, as this will be needed by |
| not be liable to pay the excess figure in the event | | | | the insurance companies. It is advisable to check |
| of damage to the vehicle. | | | | with the rental company as to whether a police |
| For example, consider a rental contract for a | | | | report is required if any damage to the vehicle |
| small economy car which has 3rd party insurance | | | | occurs. |
| and an excess figure of €500. The hirer | | | | For most people the decision of whether to |
| decides not to purchase the additional CDW | | | | purchase additional insurance is simply a matter of |
| Insurance cover. If the car is involved in an | | | | peace of mind, and many will choose to take a |
| accident but the hirer has not purchased CDW | | | | calculated risk, and not take out the additional |
| cover, he/she will be liable to pay the first | | | | CDW cover. |
| 500€ towards the damage. Typically the cost | | | | |