Guide to Collision Damage Waiver Car Insurance And How Does It Work
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Do you know about Collision Damage Waiver and how to procure it? If not, read on to find all about the Collision Damage Waiver and its functionality.
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Understanding all about the collision damage waiver and what all it covers is important if you are planning to hire a car from any rental car service provider. So, what is a collision damage waiver? It is an additional protection that car rental customers can buy to waive off any monetary accountability that might occur in case of an accident of the rented car. By acquiring collision damage waiver, you can avoid paying for the repairs of the car that you have rented in case it collides in an accident.
A collision damage waiver protects the body of the car against any scratch or dent that might occur in the rented car. It also allows protection against car damages caused to the leased car by fire, theft or any wreckage along with covering towing expenses of the car.
In this blog, we are talking about collision damage waiver meaning, and other aspects related to this insurance to give you a better idea of the same.
What is Waiver of Collision Damage?
A waiver of collision damage is an additional cover insurance policy that car renters could buy to cover themselves against financial damages in the event of a road accident. With this cover handy, the renter of a car can avoid the responsibility to incur cost of repairs of the leased car if it gets damaged in any accident or mishap.
Why do I need a Collision Damage Waiver Car Insurance?
Many people prefer to rent cars for long distance travel, especially the ones who do not own a car. Renting a car is a viable option if you cannot afford a car that matches your budget. This way, you don’t have to spend a large sum of money and at the same time you can make life easy.
Now for those using rental cars can protect themselves against any accidental damages by purchasing a collision damage waiver. With a collision damage waiver, the insured or the one who has rented the car can cover him/her against the cost of repairs of the car if it gets damaged in the event of an accident. Without this insurance cover, you might have to pay off the cost of entire damage incurred in the cost of repairing the car. However, if you have this cover intact, you can avoid paying for the damages as the cost will be incurred by the insurance company.
What is the difference between Car Insurance and Damage Waiver?
There is a difference between collision damage waiver and car insurance. While a collision damage waiver covers for the cost of repair for damages caused to a rented car, a car insurance policy covers a vehicle that is your own and not rented. Moreover, the coverage allowed in both these policies are also different. In case of rental vehicle accident, the collision damage waiver covers a part of the cost of repairs paid by the renter, while a car insurance policy allows extra protection against car damages.
Collision Damage Waiver Inclusions and Exclusions
What all are covered under Collision Damage Waiver?
Here are the protection allowed under a collision damage waiver that you should know about:
- Damages against scratches and dents to the rental car.
- In case the hired car gets stolen.
- Cover the cost of towing the insured car for repairs to the nearest garage.
What all are not covered under Collision Damage Waiver?
Below are the covers not allowed under collision damage waiver:
- If any part of the rented car gets damaged, like wheels, gearbox, or windscreen etc. they are not covered under the collision damage waiver insurance.
- If any damage is caused to the rented car for violating any traffic rules.
- In case of third-party car damages caused due to accident involving the rented car.
Benefits of Collision Damage Waiver Cover
If you think of hiring a car for long distance travel or a road trip and are planning to buy a collision damage waiver, here are the benefits that you may enjoy:
Save Money – with a damage waiver car insurance, you can save money by reducing the risk paying the cost of any damage caused to the rental car caused due to an accident.
Peace of Mind – collision damage waiver allows you to have complete peace of mind and so you can travel easy on the road since you know that the rented car that you are driving is covered with collision damage waiver to save you against car theft, fire, and other damages.

Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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