A collision damage waiver (CDW) is a car insurance coverage dedicated to rental cars to protect renters from financial consequences in case of damage to the rental car. CDW might come in handy when renting a vehicle, especially if you get into an accident. The level of coverage that CDW policies offer usually differs based on your insurer.
Some people tend to rent cars frequently. Renting cars has recently become quite popular in the UAE. If you’re traveling for work, like to drive different vehicles, or just rent cars a lot in general, opting for an annual collision damage waiver helps you save a lot of money and hassle during those times. This Lookinsure mag article will teach you all about it.
Frequently Answered Questions
Is a Collision Damage Waiver the same as car insurance?
A CDW is an additional car insurance policy dedicated to rental cars. It differs from standard insurance policies for car owners.
What does a collision damage waiver cover?
A collision damage waiver (CDW) covers damage to the rental car, theft, vandalism, and usually liability for third-party damage. However, the level of coverage your policy has depends on many factors, such as your insurer.
Do I need an annual collision damage waiver insurance?
You need an annual CDW car insurance policy if you’re a frequent car renter.
Which credit cards offer collision damage waivers?
Visa, Mastercard premium cards, and American Express cards are among the credit cards offering CDW.
How do I add a collision damage waiver to my rental?
You can get your CDW with Lookinsure for your rental car. Some rental car companies also offer this feature. However, we recommend getting an annual CDW with Lookinsure’s affordable and high-quality services.
What is a Collision Damage Waiver?
A collision damage waiver or a CDW is another protection that provides coverage in case of getting into an accident or damaging a rental car. The amount of CDW coverage depends on your policy.
However, CDW is vital car insurance for rental cars, especially if you’re a frequent renter. Due to the high repair costs, we highly recommend investing in CDW, especially if renting a car in the UAE.
To get a collision damage waiver rental car, you will only have to pay the excess amount in case of an accident, and the insurance company will take care of the rest.
Differences Between Collision Damage Waiver and Traditional Car Insurance
Do not confuse a Collision Damage Waiver with a typical and standard car insurance policy. CDW only covers the repair costs of rental cars, and is one of the answers to how to get cheap car insurance.
Coverage Options
There are a few different coverage options available when renting your car. Below are the most common CDW coverage options:
| Standard CDW | The standard collision waiver rental car insurance protects your rental car against damage due to theft or collision. However, this coverage does not protect you against personal injuries, vandalism, driving under the influence, etc. |
| Loss Damage Waiver (LDW) | LDW is a type of CDW that covers theft of the rental car (total loss) and collision damage. This coverage is more expensive and provides broader protection. |
| Super CDW | Super collision damage waiver is the most comprehensive version of CDW insurance policies. This coverage even eliminates the excess you would need to pay if you get into an accident. This is the most expensive option. |
| Standard Comprehensive Car Insurance | A standard comprehensive car insurance is a type of coverage that offers full coverage protection. In case you’re asking what full coverage car insurance covers, the answer is financial protection in case of any third-party liabilities, damage due to natural disasters, fire, theft, and more. However, this coverage is dedicated to car owners and only protects if you own the car you’re trying to insure. |
Collision Damage Cost Comparison
Let’s take a look at the costs of CDW coverage and standard comprehensive coverage in the Emirates:
| Collision Damage Waiver (CDW) | CDW cost can vary in the UAE depending on the insurer, type of policy, make and model of the rental car, and other factors. The daily cost of CDW for rental cars ranges from around AED 30 to AED 100 per day. For annual coverage, the approximate cost starts from around AED 5,000 and goes up from there. |
| Third-party Liabilities Car Insurance | Without third-party insurance, you might face severe financial consequences, especially in the UAE, where this type of insurance is mandatory for all drivers. It is essential to ensure your CDW covers third-party liabilities; if it does not, you should consider obtaining additional coverage that does. |
| Comprehensive Car Insurance | The cost of your comprehensive policy also varies based on factors such as your car’s make and model, driving history, policy details, insurer, and more. However, the estimated cost for a comprehensive car insurance policy in the UAE ranges between AED 2,000 and AED 7,000 annually. |
Easier Claims Process
Learning How to claim insurance for car accident on your CDW is slightly different from a standard insurance policy. Below is how to claim a CDW with Lookinsure:
1. Call the police
Make sure to call the police immediately after an accident. It is also important to receive police reports.
2. Inform your insurer
Let your insurer know about the accident.
3. Fill out a claim form
Fill out the claim form available on Lookinsure’s website.
4. Attach documents
Attach all the necessary documents and evidence, such as photos and police reports. You will have no problem in this step if you know how to report accident in Dubai.
5. Verification of incident
Your insurer and the rental company will verify whether the accident falls under the terms of your policy.
6. Wait for your insurer’s notice
Your insurer will inform you about your claim process and whether it has gone through.
Annual Collision Damage Waiver Insurance
An annual CDW is suitable for frequent renters. Rental cars are very common in the UAE. Whether you’re a traveler, a resident, or a car enthusiast, renting cars frequently is popular.
Therefore, we highly recommend frequent renters opt for an annual CDW plan instead of paying daily for their rental car insurance. This helps save a lot of money while not worrying about your policy’s consistency.
Plus, annual plans usually provide a wider range of coverage options. Especially for frequent luxury car rentals in Dubai, you should purchase a yearly CDW policy without hesitation.
How to Choose the Right Collision Damage Waiver?
Choosing the right CDW policy for rental cars is a process that requires precise consideration. This is how to choose the right auto rental collision damage waiver in the UAE:
Determine Your Insurance Needs
Before committing to any insurance policy, ensure you know your requirements. Are you a frequent renter? How expensive is your rental car? What amount of protection do you wish to receive?
Many CDW policies don’t cover third-party liabilities. Make sure you know exactly what you’re looking for. Answer all of the previous questions accurately and determine your needs. Then, you can move on to the next steps.
Compare Insurance Costs
How much are you willing to pay for your policy? Many people look for an affordable insurance excess, while others want a perfect and high-protection policy and don’t care about the price. Make sure you determine your budget.
Compare Quotes
Compare quotes with Lookinsure easily. Answer essential questions, determine your needs, and receive suggestions that are suitable for your needs. Compare quotes and choose a policy.
Look For Additional Coverage Options
Lookinsure allows you to find additional coverage options. Some CDWs provide theft, third-party liabilities, and personal accident coverage, while others don’t.
Tips for Renting a Car with Collision Damage Waiver
Purchasing a CDW is not that different from other types of insurance policies. After learning how to rent a car in Dubai and how to choose a CDW for it, it’s time to get into more details. There are some tips you might find helpful when you want to get a car hire collision damage waiver.
Understand CDW Coverage
Ensure you understand precisely what your Collision waiver covers and the excess you must pay. This helps you choose a better option, avoid unnecessary claims, reduce costs, and more.
Ask for a Car Inspection
Before renting a car, ask for details on its inspection and scrutinize it. This is important to ensure that all previous and current damages are documented and that the car is safe.
Understand Local Traffic Laws
Learning their local traffic rules and regulations when renting a car in another country or state. This helps avoid traffic fines and unwanted claims.
A collision damage waiver is an optional car insurance policy for rental cars. This coverage provides financial coverage for rental car damages in case of an incident. For car renters, especially frequent ones, we highly recommend getting an annual CDW policy that helps you avoid high repair costs. Especially if you’re driving a high-maintenance car, it is even more important to get a CDW. Lookinsure has gathered all of UAE’s best insurers to provide rental car protection services and simplify the process for you.
