Collision damage exemption (CDW), also called rental car insurance, eliminates a car renter's liability for all or part of the damage suffered by the rental vehicle in an accident, similar to collision insurance. The CDW can also cover cases of theft or vandalism. The collision damage exemption (CDW) is additional insurance coverage offered to a person who rents a car. The collision damage exemption is optional, and the cost of the exemption depends on a variety of factors, including the type of vehicle rented and where the car is being driven.
The exemption generally covers losses caused by the theft or damage of a rented car, but is unlikely to cover bodily injuries caused by an accident. When you rent a car, the rental company can offer you collision coverage in the form of a loss damage waiver, also known as a collision damage exemption, at an additional cost. Technically, these exemptions do not offer insurance coverage, but rather indicate that you are not required to suffer collision damage to the vehicle. The rental company may also offer a theft exemption that can be combined with collision damage exemptions.
If your car insurance policy includes collision coverage, you may already be covered for collision damage to your rental car. The CDW is excellent coverage, but it only applies to damage to rental vehicles, unlike comprehensive and collision insurance would. Full coverage with comprehensive and collision insurance is the norm for all drivers of rental vehicles; simple liability insurance will not be enough to cover the rented vehicle. Car rental customers who purchase a collision damage exemption pay an additional daily fee in addition to the car rental fee.
There are cases where you may be able to skip the collision damage exemption because you already have coverage for rental vehicle damage with other types of insurance. CarInsurent offers independent annual franchise exemption insurance for multiple trips or daily car rental trips, which will cover deductible expenses or CDW or LDW deductibles. Another popular name is loss damage exemption insurance, but this isn't really accurate, since a collision damage exemption doesn't count as an auto insurance policy. An example would be that if the limits of your personal car insurance policy are not sufficient for the rental car, perhaps a damage exemption or credit card coverage from the credit card company would be the best option to take out liability insurance or collision insurance.
If the vehicle is damaged, the renter is not responsible for some or all of the repairs, or for any loss of use fees that may accrue while the rental car is being repaired. Most auto insurers extend their collision coverage to any rental vehicle you drive, as long as you drive it for personal use. That's why it's important to know everything about liability, collision damage exemptions, collision damage insurance, and other types of rental car insurance. A CDW is a great option if you don't want to have to pay a lot of expenses after a collision or accident in a rental car, which would inevitably affect your personal car insurance premium.
A third option you have to cover damages after a rental car accident is to get car insurance from outside insurance companies. You should consider a collision damage exemption if you don't have collision coverage in your car insurance policy. No, car rental companies only offer a collision damage exemption for rental vehicles, not an everyday car insurance product.