Define: Collision Damage Waiver

A Collision Damage Waiver is an optional insurance coverage offered by rental car companies that protects the renter from financial responsibility in case of damage to the rental vehicle.

If your personal car insurance policy covers rental cars, you may not need a Collision Damage Waiver. However, it is important to review your policy and consult with your insurance provider to confirm the extent of coverage.

The cost of a Collision Damage Waiver varies depending on the rental car company and the duration of the rental. It is typically charged as a daily fee, ranging from a few dollars to around $30 per day.

A Collision Damage Waiver typically covers damage to the rental vehicle due to accidents, theft, vandalism, or other covered perils. It may also provide coverage for loss of use charges imposed by the rental car company while the vehicle is being repaired.

Collision Damage Waivers may have certain exclusions or limitations, such as not covering damage caused by driving under the influence of alcohol or drugs, off-road driving, or reckless behavior. It is important to carefully review the terms and conditions of the waiver before purchasing.

Yes, you have the right to decline a Collision Damage Waiver. However, if you choose to decline it, you may be held financially responsible for any damage to the rental vehicle, including repair costs, loss of use charges, and administrative fees.

Rental car companies cannot force you to purchase a Collision Damage Waiver. However, they may require you to provide proof of insurance coverage or place a hold on your credit card for the estimated cost of damages if you decline the waiver.

If you have an accident while covered by a Collision Damage Waiver, you should immediately report the incident to the rental car company and follow their instructions. They may require you to complete an accident report and provide any necessary documentation.

Collision Damage Waiver coverage is typically non-transferable and applies only to the renter named in the rental agreement. If another person will be driving the rental vehicle, they may need to be added as an additional driver and purchase their own coverage if desired.