CDW Insurance for rental cars

CDW Insurance for rental cars

The so-called CDW insurance (collision damage waiver) covers the excess of the cost of repairing damage to the rental vehicle. But so far, no insurer in Argentina offers comprehensive insurance for rental vehicles. For this reason, a cost sharing is agreed with most car rental companies in Argentina. Mostly in the case of self-inflicted partial damage, rollover, total damage, theft, etc.

In the case of high-quality vehicles, this deductible amount can reach several thousand euros.

The best way to insure yourself against this residual risk of claiming any damage up to a maximum of the deductible is to take out a collision damage waiver (CDW) policy.

CDW definition

Damage waiver or, as it is often referred to, collision damage waiver (CDW) or loss damage waiver (LDW), is optional damage insurance coverage that could be available to you when you rent a vehicle.

Car rental companies treat the CDW as a waiver of their right to make the renter pay for damages to the car.

In many countries, it is a legal requirement to have such insurance included in the basic car rental rate. It covers the rented car. In Argentina a CDW is not a requirement. Some rental companies also offer liability insurance and coverage of towing charges. Terms and prices vary. Alternatives to the CDW include other car insurance policies, some coverage from credit card issuers (Visa, MasterCard, etc.) and some travel insurance.

Where can I take out CDW insurance?

In Germany e.g. HanseMerkur Insurance offers worldwide CDW insurance.