Damage waiver or collision damage waiver (CDW) is additional cover that is offered when you rent a car. Such type of cover can be expensive in some countries and can add twenty to 50 percent more to the rent of the car. However, people opt for such cover in some circumstances such as when using the vehicle on long vacations or when using an expensive vehicle.

• Collision cover is offered in another form which is called collision cover top up or super collision cover. These are really expensive compared to normal collision damage waivers and are only advisable if you are renting a very expensive vehicle. Buying such cover from a car rental company is not advisable and you may get such cover from your own car insurer instead of the rental company.
• Such cover is also given by credit card companies including Visa, MasterCard, Amex, and Discover. This is another option of opting for such cover; however some types of damage can be excluded from credit card coverage. For instance damage due to war, terrorist activity, lack of reasonable care, violating the law, and racing are usually excluded by all credit card companies.
• The major distinction among the four credit card companies listed above is that MasterCard and Amex cover collisions, theft, vandalism and weather; Visa covers collisions and theft, but excludes vandalism and weather; while Discover covers merely collisions. MasterCard also gives this coverage only to specific cards: “Standard” cards do not provide this advantage, only “Gold” or “Platinum” cards.
• In case of credit card companies the rental period can range anywhere from 15 days to 48 days. It completely depends on the credit card company’s terms and conditions. Moreover the cover that is provided only protects the driver in some cases and some credit card companies cover the driver as well as other passengers. Most cards offer cover against vandalism, theft, damage due to falling objects, and weather.
• Another point to be considered here is that some car rental companies may include the waiver automatically in their contract. Many people are not aware of this fact and are kept in the dark by the rental agency. This means that if you are already insured by the rental company with a built-in clause then your credit card company may fail to reimburse you in any way as it usually voids the contract with the credit card issuer.
• Many people have reported problems with credit card companies denying them such cover because of the location or country where the car was rented. It is advisable to call and ask the credit card company about the “fine print” issues that may burn a hole in your pocket. The main reason for getting CDW is that for a personal car, a dent on scratch is a small thing but for a rental company, it may require professional repair which may be costly.
• The bottom line for such types of insurance is that it is absolutely necessary when you rent a car. Furthermore it is advisable to clarify all the terms and conditions from the insurance provider (or credit card /rental agency) before opting for CDW. The terms and conditions can be complicated and vary according to the company and the location where the car was rented.

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