Collision Damage Waiver Insurance
Buy/renew Collision Damage Waiver insurance in 2 Minutes⚡️
Upto 85% Off on Collision Damage Waiver Insurance Price
Getting a brand new car?
Save up to ₹40,000* on your insurance
Home / Car Insurance / Collision Damage Waiver
What is a Collision Damage Waiver?
A Collision Damage Waiver or CDW is a protection that you can choose to include when you rent a car to limit your financial liability in case the car is damaged in an accident. In any chance if you hit another car with the rental vehicle, the CDW will cover the repair costs, and thus you will not have to pay the entire amount of the damages. Although, it is not an insurance policy as such, it can be seen as a safety net for your rental period.
For example, you are driving in a rented car on a curvy hill-station road. Suddenly, some monkeys jumped across the road. As a result, you lose control of the car and hit a tree. Thankfully, you emerge injury free, but the car’s front door is damaged. It’s dented.
Here are the two likely outcomes in this scenario.
If you had purchased a Collision Damage Waiver Cover (also known as CDW car insurance) while renting the vehicle, then you will not have to pay the car’s repair bill apart from the minor cost not covered by the cover.
If you had not purchased a Collision Damage Waiver Cover, then the car rental company will look into the matter as per the agreed terms and conditions of the rental agreement, and you might have to pay for the repairs.
What is covered under collision damage waiver?
A Collision Damage Waiver reduces your financial liability in case the rented car gets damaged from a covered incident(s) during the rental period.
Collision or accident damage to the rental car
Body repair, dent, or scratch costs (in accordance with policy provisions)
Damage from the car being overturned
Repair costs either in part or full depending on the coverage limit
On a few occasions, the rental company may charge loss of use fees, which will be covered
What is not covered under collision damage waiver?
Besides offering protection against collision damages, CDW does not cover all the situations or types of losses.
Drunk driving or illegal activities related damages
Damage caused by reckless or negligent driving
The car being stolen (unless Theft Protection has been purchased separately)
Tires, windshield, side mirrors, and roof or undercarriage damage (mostly cases)
Stolen personal possessions from the vehicle
Mechanical failure not caused by an accident
Since coverage can depend on the rental company as well as the policy terms, it is vital to review the agreement carefully.
Benefits of Collision Damage Waiver Cover?
If you are renting a car and opting to purchase a Collision Damage Waiver Cover, then you will be able to avail of the following benefits.
Save money
With a Collision Damage Waiver Cover, you will not have to spend a huge sum of money from your pocket to repair the car if its body gets damaged due to an accident.
Peace of mind
With a theft cover in place, you don’t have to worry about the financial implications of the rented car being stolen while you are resting for the night during a road trip.
How much does a Collision Damage Waiver Cover cost?
Usually, a Collision Damage Waiver Cover is sold via the rental company, as they might have a tie-up with an insurer. Unlike Third-party Car Insurance, the cost of Collision Damage Waiver Cover is not stated by the Insurance Regulatory and Development Authority of India (IRDAI). Thus, it can vary from one seller to the other.
Is it compulsory to buy Collision Damage Waiver Cover while renting a car?
Purchasing a Collision Damage Waiver Cover while renting a car in India is optional. However, make sure the rented car is covered as per The Motor Vehicles Act, 1988. Rental companies make it an optional extra that you can use to lessen your financial obligation if the vehicle gets damaged.
Still, even if it is not a legal requirement, rental companies are likely to hold you financially responsible for any damage during the rental period. If you do not have a CDW, you could be required to cover the cost of repairs in full or pay a hefty deductible. A few rentals may come with a basic damage protection feature, but the coverage is likely to be minimal.
Before going for the CDW purchase, it is always advisable to examine the rental contract and ascertain your liability.
Collision Damage Waiver insurance for car rentals and car insurance in India
Collision Damage Waiver Cover and a car insurance policy are two different financial products. Here’s a table highlighting the key differences between the two.
Frequently Asked Questions (FAQs)
Here are some of the top FAQs associated with Collision Damage Waiver.
Can I purchase the Collision Damage Waiver for my private vehicle?
No, such a cover can be purchased only in case of renting or leasing a car.
Can I convert my private car insurance policy into Collision Damage Waiver for a car that I plan to rent?
No, a car insurance policy and Collision Damage Waiver are two separate financial products, and they cannot be converted from one to the other.
Will I be blamed if the car I rent gets stolen?
If the car you rent gets stolen, you might be required to cooperate in the ensuing legal proceedings. However, as far as reimbursing the car rental company for their loss due to theft, such an instance can be covered if you purchase a Collision Damage Waiver.
#36/5, Hustlehub One East, Somasandrapalya 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102