Collision Damage Waiver Coverage

Collision Damage Waiver Coverage Rental car companies frequently sell collision damage waiver (CDW) coverage. A CDW is a contract offered by rental car companies. The contract shifts legal responsibility for collision damage from the person renting the car to the car rental company. Collision damage to the rental vehicle is any damage resulting from an accident. Most personal automobile policies include coverage for damage to a rental car.

Before renting a car, check with your agent to see if you have coverage under your personal vehicle policy.

NOTE: If you rent a vehicle in an area where your regular insurance does not provide coverage, usually anywhere except the United States and Canada, purchasing a CDW is probably worthwhile.

If you are having problems with a car rental company, you ought to contact the Consumer Protection Unit of the Attorney General’s Office in the state in which you rented the car.

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