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Understanding Collision & Loss Damage Waiver Insurance for Rental Cars

Written by Ahmed Shabbir

Collision Damage Waiver Insurance

The Collision Damage Waiver insurance is an additional insurance cover that prevents you from financial liabilities in a rental car collision. If the car renter has purchased the CDW insurance, he doesn’t have to pay the rental company in case of any collision damage. 

Loss Damage Waiver Insurance

The CDW insurance for rental cars prevents the renter from any financial liability in case of loss or theft of the rental car. The insurance company will pay the financial liability to the rental company in this case.

What is the difference between CDW and LDW Insurance?

CDW insurance covers the financial liability in case of the collision of the car with another, where the insurance company pays the liability to the rental company that owns the car. In contrast, LDW insurance covers the liability in case of loss or theft of the car. 

Is CDW the same as Car Insurance?

No, CDW is different from third-party or comprehensive car insurance. CDW Insurance coverage is for rental cars. Whereas comprehensive insurance sometimes includes CDW as well. Because it has been offered to the car owner, at the same time, third-party insurance is a must in UAE for a car owner.

Do I need Collision and Loss Damage Waiver Insurance?

In case of using a rental car instead of your car, it’s recommended to purchase collision and loss damage waiver insurance to prevent yourself from a substantial financial liability in case of a collision or loss or theft of the rental car. It safeguards your financial risk in case of damage or loss to the car.

However, if you already have an insurance policy covering CDW Insurance and LDW Insurance. Then, there is no need to waste your money on CDW insurance.

Can you skip CDW Insurance for rental cars?

CDW Insurance can be skipped if you already possess a comprehensive insurance policy or third-party insurance for the car. Secondly, credit card companies sometimes offer CDW insurance if you’re paying the car rentals through their credit card facility. Above all, it is recommended to cover your collision or loss risk with CDW Insurance if you’re using a rental car.

What does CDW Insurance cover for Rental Cars?

If you’re opting for CDW Insurance UAE for the rental car. It’s good to know what has been covered under the CDW Insurance policy:

  • It covers damage to the car’s body like dents and scuffs.
  • It covers the risk of theft, fire, and vandalism of the rented car.
  • It also covers towing expenses of the rented car.

What is not covered under the CDW Insurance policy?

A Collision Damage Waiver insurance policy does not cover the repairing expense of the car in the following scenarios:

  • It does not cover any injuries to the renter if they have caused the accident.
  • It doesn’t cover the damages of the third party.
  • It doesn’t cover damages to certain car parts like wheels, tires, roof, windscreen, gearbox, & battery.
  • It doesn’t cover the expenses of the driver found drunk during the accident.
  • If the driver is driving a car into a barrier that is too low to pass the vehicle.
  • If they drive into the car park barrier before it fully opens.
  • Driving into the flooded road to damage the car engine.
  • Burning the clutch or misusing the handbrake.
  • Damage to the rim due to driving the vehicle with a flat tire.
  • Damage resulting from locking the car or losing the vehicle keys.
  • Damage due to putting the wrong fuel or due to the contaminated fuel.
  • Damage to the car due to leaving the car with open windows.
  • Damage due to ignoring the warning light or ignoring the traffic lights.
  • Damage due to fitting an unauthorized object to the interior or exterior of the car.

These are specific reasons why any claim on a rental car by the CDW Insurer will not be fulfilled. Furthermore, above all these scenarios, in case the driver has been found guilty due to ignorance or negligence. The insurance company will not cover the expenses of the damages.

If I Don’t Choose CDW Car Rental Insurance, What are Other Options available?

If you don’t choose CDW Insurance for rental cars, you are at risk. In case of a rented car accident, you might have to bear financial liability due to the accident. Hence, getting CDW insurance for your rented car is recommended to avoid any financial liability risk.

Choose the Best CDW Insurance with BuyAnyInsurance


You need Collision Damage Waiver insurance if you rent a car. Because it will reduce your financial liability risk, which may occur in case of an accident. So, we recommend you to get CDW Insurance for rental cars. BuyAnyInsurance is a 24/7 insurance buying portal where you have many insurance companies that give you discounted offers for best CDW Insurance. Furthermore, you feel free to contact BuyAnyInsurance to get the best advice for CDW Insurance Comparison.

Frequently Asked Questions:

Is CDW full coverage?

Yes, CDW is full coverage insurance covering damage to your rental cars.

Can I buy cdw insurance online?

Yes you can easily buy cdw insurance online.

Wrapping Up!

Collision Damage Waiver Insurance is one of the best options to cover your risk of financial liability for a rented car. It is recommended to buy CDW Insurance to cover your risk but understand the CDW Insurance well. So that you have a complete idea of its coverage furthermore, feel free to contact BuyAnyInsurance if you have any questions related to car insurance.

Related Article:

What Are The Essential Documents Required For Car Insurance?

List of Best Car Insurance Companies in Dubai and the UAE

These Factors Will Change Your Approach to getting Car Insurance in Dubai

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    Originally published Feb 25, 2022 10:46:45 AM, updated May 10, 2024

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