Renting a car comes with numerous advantages: it allows you to move freely and plan your holiday or business trip with complete flexibility. However, before booking, it’s extremely important to understand the conditions and the different types of insurance. Today, we want to clarify how CDW insurance works and what it covers in the event of accidents or vehicle damage.
CDW and LDW insurance for rental cars
In the car rental insurance sector, you often hear about CDW and LDW, but what do they mean? Both terms refer to protection against damage to a rental car. Specifically: CDW stands for Collision Damage Waiver, while LDW stands for Loss Damage Waiver.
CDW is therefore a type of insurance that offers a partial waiver of liability for damage. In other words, it removes the customer’s responsibility for vehicle damage, except for the amount corresponding to the deductible.
Car rental companies offer CDW/LDW insurance policies with different levels of coverage against theft, loss of the vehicle, and damage. In some cases, certain parts of the vehicle may be excluded from coverage.
When renting a car, CDW/LDW coverage is required, although in some countries—such as the United States and Canada—you may need to purchase additional insurance.
What is the deductible?
The deductible corresponds to the portion of responsibility not covered by CDW, partial damage waiver, TP (Theft Protection) or partial theft waiver. The amount of the deductible depends on the vehicle category and the specific policy conditions, but it can be eliminated by purchasing full coverage (Kasko or SCDW).
The deductible is the maximum amount the customer must pay in case of damage to the vehicle. This amount is fixed, defined when the contract is signed, and may be held on the credit card or requested as a security deposit.
Damage coverage in case of an accident with a rental car
In the event of an accident involving a rental car, CDW liability limitation allows the driver to reduce financial responsibility. The rental company therefore agrees not to charge additional amounts beyond the deductible if damage occurs.
Each company defines its own CDW conditions, but generally tyres, windscreens, underbody, locks, keys and towing costs are excluded. If these parts are damaged, the driver must cover the cost even when a CDW policy has been purchased.
It is also important to know that CDW is valid only if the rental conditions outlined in the contract are respected. For example, if the driver drives under the influence of alcohol, violates traffic laws, or parks the car in a dangerous area and it gets damaged, they are responsible for repair and replacement costs.
Looking for car rental in Olbia and want to learn more about the insurance coverage offered by Ellepirental? Contact our team and discover all the details before booking the vehicle for your holiday!
