What is Collision & Loss Damage Waiver (CDW/LDW)?

Collision Damage Waivers & Loss Damage Waivers cover the full cost of a rental vehicle in a similar way to how a comprehensive motor insurance policy would protect your own private vehicle.

CDW Explained

Collision Damage Waiver, often shortened to CDW or CDW Insurance, covers the full value of the rental vehicle in the event the vehicle is damaged. Unlike excess insurance that protects you against excess charges relating to damage, CDW protects you up to the full market value of the vehicle should the worst happen during your rental.

Do I need to buy Collision Damage Waiver?

CDW is often included as standard by rental companies in Australia, New Zealand and Europe, however it is always worth checking that this cover is in place before booking your hire vehicle. Without it, you could be liable for as much as $200,000 if you were to rent a premium vehicle and write it off.

You can purchase CDW from the rental company, however this can often be more expensive and less comprehensive than buying from us. It’s also worth noting that vulnerable parts of the rental car, including tyres, roof, windscreens and undercarriage, are often excluded from the rental companies’ CDW cover altogether. This means that if these parts of the vehicle became damaged you would be liable to pay an excess. Our CDW/LDW policies cover these parts of the vehicle as standard.

What is Loss Damage Waiver (LDW)?

LDW works in the same way as CDW, with the difference being that Loss Damage Waiver also protects you against the theft of your rental vehicle. You may often find that the rental vehicle comes with combined CDW/LDW cover, however this is again not always the case, so it is worth checking with the rental company what eventualities are covered and the extent of your liability should the worst happen.