Collision Waiver

A Collision Waiver is a rental car insurance option that waives financial responsibility for vehicle damage in case of an accident.

What is a Collision Waiver?

A Collision Waiver, also known as a Collision Damage Waiver (CDW), is a protection offered when renting a vehicle. It covers damage to the rental car in the event of an accident, theft, or collision. While it sounds like insurance, it’s technically a waiver that limits or eliminates the renter’s financial liability for any damage to the vehicle.

This waiver is important because, without it, renters could be responsible for the full cost of repairs or replacement, which can be financially burdensome. However, it typically doesn’t cover everything. Things like damage to tires, windows, or the interior of the car may not be included. It also doesn’t usually cover personal injury, which would require additional insurance.

In terms of practicality, a Collision Waiver is often offered by rental companies as an optional add-on. Renters may also be covered by their personal auto insurance policies or credit card benefits, so it’s essential to verify coverage before opting for the waiver. In personal insurance, a collision waiver can provide peace of mind when renting a car for business or travel purposes, ensuring that any damage to the vehicle is handled without major financial impact.

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