Collision Damage Waiver Explained

The car hire space is teeming with jargon, but don’t let yourself get lost in unfamiliar terms and acronyms. This is a handy guide to Collision Damage Waiver and Supplemental Liability Insurance that explains what they are and how they work, so you don’t have to be another confused traveller thrown off by confusing car hire phrases.

What is a Collision Damage Waiver?

A Collision Damage Waiver (CDW – sometimes called a Loss Damage Waiver (LDW) or Physical Damage Waiver (PDW) – reduces your financial responsibility if the hire car gets damaged, stolen or is declared a total loss. Although CDW does, in effect, relieve you from covering the full cost of repairs or replacement, you will still be liable for an initial amount. This is otherwise known as the excess. 

The CDW is essentially an agreement between you and the hire company that they will cover a certain amount of the cost. This means that CDW basically shifts the bulk of the cost from you to your car hire firm and you are left to cover the excess. With a car hire excess insurance policy from Eversure, this leftover cost can be refunded back to you.

Can I Get CDW with my Car Hire Excess Insurance Policy from Eversure?

You can only purchase CDW through Eversure if you select the Worldwide+ coverage option. With our Worldwide+ cover you get $50,000 CDW in the US and Canada. This option is specifically designed for customers hiring customers outside of Europe as basic CDW is already a part of most European rental agreements and so it’s not included as our standard coverage.

Seeing ‘CDW Not Selected’ On Your Eversure Policy?

Don’t worry – this doesn’t mean you’re unprotected! What this means is that you're likely hiring in Europe and the company is already supplying CDW as part of the rental agreement.

However, you are still responsible for an excess. Let’s break it down:

• You receive a damage claim bill that comes to €1500. The excess limit is €500. The rental firm then handles the remaining €1000.

With an Eversure excess policy, you can reclaim this €500 once you fill in our online claim form with all the correct supporting documentation.

Together, the hire company’s CDW and your Eversure policy means you won’t be left out of pocket.

How CDW Differs by Region

As previously mentioned, CDW is usually included in European car hire agreements, but let’s look closely at the regional differences of CDW.

Hiring A Car in Europe

CDW coverage included in European car hire agreements is often limited, often only applying to damage to the vehicle’s exterior body. Aspects like the car tyres, windscreen, wheels and undercarriage are all frequently excluded.

Although CDW is built into your agreement, you will still be responsible for an excess if damage occurs.

At Eversure, our policies will reimburse you for this amount. Not only that, but they also cover windscreens, all auto glass, tyres and the undercarriage – the aspects deliberately excluded from this built-in CDW.

Hire agreements in Europe also generally include coverage for theft and third-party liability. Although you should, of course, review the terms carefully, making sure to ask your provider about anything you’re not sure about.

Hiring A Car in the United States and Canada

In North America, CDW is not usually part of the basic car hire price. Instead, it’s considered an optional extra. If you want the added protection, you will need to ask for it when you book or you can purchase a Worldwide+ car hire excess policy with us.

What About Supplemental Liability Insurance?

Supplemental Liability Insurance (SLI) is another form of cover that protects you against claims made by third parties for damage or injury you’ve caused whilst driving the hired car. The case is the same: it’s commonly included in European car hire packages but is often an extra you’ll need to add in the US and Canada.

When arranging your hire car and excess insurance, please be aware that Eversure policies do not extend to third-party injury or property damage.

Final Thoughts

Familiarising yourself with terms like CDW and SLI will allow you to feel more prepared proving you with confidence when it’s time to collect the keys. Make sure to always carefully review your hire agreement and ask any questions before you sign. Finally, don’t forget excess insurance for additional confidence.