Short guide to Super CDW

Super CDW (collision damage waiver) is a term used to describe an additional insurance covering certain aspects of car rental.

It may be needed because the basic insurance that comes with rented cars as part of ‘the price’ can vary depending upon country and rental company and it may not be sufficient to guarantee peace of mind.

When renting a car, the vehicle may or may not come with third party, fire, theft and damage insurance (usually called CDW) included in the price. This can vary significantly by country and rental company and it would be advisable to check carefully before booking what is or is not included.

Any accidents resulting in costs not covered by the basic insurance would need to be paid for by the renter. Most car rental companies will make this clear at the outset and recommend any additional forms of insurance they consider advisable.

In many countries insurance against theft, fire and third party claims are all included in the rental cost and in some cases, notably the UK, the third party cover is unlimited by law. Even so, all of these may be subject to excess – an amount the renter will have to pay as the ‘first part’ of a claim. In other words if the vehicle is damaged by fire to the tune of 3000pounds or dollars, and there is an excess of 500, then the renter will need to pay the 500 as the ‘first part’ of the total damage of 3000.

It is also the case that many major car rentals companies will offer some form of CDW insurance in the price of the rental. CDW will provide cover against collision or other damage to the rented vehicle itself, including things such as dents incurred during a minor accident.

However, this ‘included in the price’ CDW is usually limited in two respects.

Firstly it typically excludes damage to certain areas of the rented vehicle such as windows, tyres, wheels, roof areas and possibly lights. These are all parts of a car that are easily damaged in minor accidents and they can be expensive to repair.

Secondly the basic CDW will also have an excess stated. Once again this would mean that some costs of the repairs to the vehicle would need to be paid for by the hirer. The amount of the CDW excess varies tremendously by country and company but it may be high and should be checked before hire.

Many hirers are not comfortable with driving a hired vehicle that carries such a potential financial exposure for them in the event of an accident and as a result there are two ways of reducing these risks and possible costs.

Most car rental companies will offer various forms of supplemental insurance at rental time to limit the excesses payable in the event of an accident and sometimes this will also include the extension of cover to areas such as lights and tyres etc. These supplemental insurance offerings may be referred to by several names including ‘top-up’ insurance and Super CDW.

Super CDW type policies can also be purchased directly on-line from specialist insurance companies. As these are policies sold directly to a person rather than a hired car, they cover the policyholder for all rentals they make over the period of the policy – which may be up to 12 months. This can offer significant cost advantages over purchasing the cover for an individual care hire.

Typically Super CDW policies will also cover damage to those areas of the vehicle usually excluded from the basic ‘in the price’ CDW. Depending upon the specific terms and conditions of the policy, they may also cover any excess payments for the other insured areas such as theft and fire.

Whether purchasing Super CDW from an insurance company or the car rental organisation, the details, conditions and exclusions must be noted carefully to ensure that the cover provided meets the hirer’s needs.