# What exactly is CDW-Collision Damage Waiver on rental cars?



## Jwerking

Does anyone know for sure how this really works? 

We are going to Europe and renting a car.  Our auto insurance company states that they do NOT insure us for any overseas car rentals - only for domestic rentals.

Consequently, we then need to purchase by CDW and personal liability while in Europe thru the car rental company to have coverage, correct?  

Because Platimum and Gold credit cards with CDW benefits only covers payment of the deductible from your own auto insurance policy  - is that correct?  

Joyce


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## Keitht

With most motor insurance policies there is an amount you have to pay before the insurance kicks in.  For example Avis in the UK has a figure of £600 (around $1000) which has to be paid by the renter towards the cost of repairs.  This can be greatly reduced or totally eliminated by adding CDW to the basic policy.
Have a look on www.avis.co.uk Help and Support for more information.


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## Pit

I called one of my CC companies to ask about this just a few weeks ago. I was told that my personal collision coverage is primary (meaning it pays first), and the CC coverage is secondary. Now, that statement assumes that you _have _ collision coverage in your personal insurance policy. If you do not carry collision coverage (i.e. only liability), then the CC CDW coverage becomes your primary collision insurance, so long as you follow the CC rules for reserving and renting the vehicle.

I would call your CC company, get a copy of their written policy, and study it carefully. Make sure it covers you overseas and find out the deductible amounts.


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## Htoo0

The CC policies I've seen ONLY cover damage to your rental vehicle.  So they are not something I would depend upon. If the accident is determined your fault it's my understanding you would be responsible for all other damage/injuries.  Some have mentioned umbrella liabilty policies which MAY be the answer.  Definitely something you should check out before you go.


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## debraxh

I'm not an expert on the subject, but recently did a lot of research before renting a car for our upcoming trip to Mexico.

My Visa card provides CDW for most countries outside the US, but ONLY if I refuse the car rental CDW coverage.  I would suggest you check with your credit card provider to see if CDW is covered in the countries you'll be visiting.  This is for collision, i.e. damage to the rental car.  It doesn't cover liability.

In the US, your personal auto insurance policy covers liability for you, in any car you drive (including rental cars).  Since your personal policy doesn't cover you outside the US, you'll need to purchase liability coverage, either an "umbrella" type policy valid in those countries you'll be visiting, or through the rental car agency if it's not included in the rental rate (many are).


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## sultan_sfo

*Primary or Secondary?*

Last year, I had to rent a car from Hertz Local for 30 days. It was a replacement rental while my car was being repaired in an accident which was the other party's fault. I read the Hertz CDW ($10 or $12 per day) coverage and it stated clearly that it was primary. I declined. So I was covered by my own insurance first, then by the credit card insurance. Looking back, with hindsight, I would have spent the $300 (that is all I would have had to pay for the 30 days) extra because the probability of the rental car being dinged while parked is very high in an inner city. We have one old car for which I have only liability and 4 weeks ago it was side-swiped hit and run while parked. In a foreign country (including Mexico), my inclination would be to buy the rental agency insurance if it were primary because there will be a lot of hassle otherwise if there is vandalism.
/Sultan


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## Lee B

I've seen the claim that "CDW is not insurance."  Maybe that's to avoid something legal.  I recall that it means that if you damage the car you rent in any kind of colision, they will not make you pay for fixing the damage.  As others said, it does not insure you as a driver.  That means you want liability insurance on yourself, and probably somebody other than the car renters, if they even offer it, would be best.

Do research on insurance firms in the place you will visit.  Maybe, besides liability coverage, they will offer coverage like CDW for better terms than the rental company.  One time I bought CDW from a firm on a little card that RCI stuck in with an exchange confirmation.

The more research you do at home, the better prepared you'll be at the counter.


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## Jwerking

Lee B said:
			
		

> I've seen the claim that "CDW is not insurance."  Maybe that's to avoid something legal.  I recall that it means that if you damage the car you rent in any kind of colision, they will not make you pay for fixing the damage.  As others said, it does not insure you as a driver.  That means you want liability insurance on yourself, and probably somebody other than the car renters, if they even offer it, would be best.
> 
> Do research on insurance firms in the place you will visit.  Maybe, besides liability coverage, they will offer coverage like CDW for better terms than the rental company.  One time I bought CDW from a firm on a little card that RCI stuck in with an exchange confirmation.
> 
> The more research you do at home, the better prepared you'll be at the counter.



Thank everyone for all the comments.  Lee, you made me laugh (please do not take offense) when you stated you purchased an "umbrella" policy based on a little card in your RCI package.  There are alot of those floating around and to research the actual coverage and deductibles on those would be another nightmare.  Of course, finding them to file a claim would be a nightmare as well.  

Talking about Mexico, we rented a car for 2 days on our first trip to Cancun and got hit from behind in downtown within a few hours.  Thank goodness there was no damage - because it was just a good bump.  Because I heard horror stories in Mexico - where they drag foreigners to the police station because of uncertainties over insurance coverage.


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## Lee B

Mexico's law, supposedly Napoleanic, assumes you are guilty until proven innocent.  So when two people crash, they quickly exchange names and info and try to leave before the police show up.


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## Doc107

*What is CDW*

What does CDW stand for?  We're going to Mexico next week and trying to figure out this rental car insurance lingo.  I have American Express Gold which has insurance coverage and now I hear that AVIS may not accept American Express!

Doc 107


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## hvsteve1

A couple of points on rental car CDW (collission damage waiver),

The biggest risk you face with a rental is not always the cost of repair, it's the amount the rental agency charges you for loss of use of the vehicle while it is being repaired. You're kind of at their mercy as to what the daily loss is, how long it should take to repair, the extent of damage, etc. Some credit cards or auto insurance policies may or may not cover the loss of use charge.

While your auto insurance may not cover you when renting out of the country, there are temporary riders you could at at little or no cost. When we rent in Canada, I call my agent and tell him to add a rider (which you also need to add when you take your OWN car there).

In another posting, (see below) there was discussion of a new policy most major auto rental companies are enforcing. When they say only "authorized" drivers may operate the car, they don't mean only on the open road. They now consider a parking valet or parking attendant an "unauthorized" driver.


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## STEVIE

After reading all this, why would anyone ever rent a car in Mexico?  I would take transfers from the airport and rent a taxi.  Or are the taxi companies corrupt and not safe?


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