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Collision Damage Waiver (CDW) After an Accident: What You Need to Know

Collision Damage Waiver (CDW) is the most common rental car protection, but understanding how it works after an accident is crucial. CDW has limitations and exclusions that may leave you exposed.

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What CDW Covers

CDW typically covers:

• Damage to the rental vehicle
• Loss of use charges (in most cases)
• Diminished value claims
• Administrative fees

CDW waives your financial responsibility for these charges, though the rental company may still bill you initially.

What CDW Does NOT Cover

CDW does not cover:

• Injuries to you or others
• Property damage to third parties
• Your personal belongings
• Damage while violating rental agreement
• Damage from prohibited activities
• Some types of vehicles or locations

CDW Claim Process

To use CDW after an accident:

• Report the accident to the rental company immediately
• File a damage claim
• Provide police report if applicable
• Document all damage
• Review any charges before paying
• Contact a lawyer if charges seem improper

Frequently Asked Questions

Can the rental company deny my CDW claim?

Yes, for certain violations like driving under the influence, unauthorized drivers, or off-road use. Review your rental agreement for exclusions.

Do I need CDW if I have personal auto insurance?

Your personal insurance may cover collision damage. However, CDW avoids deductibles and potential rate increases. It depends on your situation.

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