Definition of Collision Damage Waiver (CDW)
Collision Damage Waiver (CDW) is an insurance policy that is offered by car rental companies. It is an optional insurance policy that eliminates any responsibility of the driver in the event of an accident. This insurance policy covers any damage that may occur to a rental vehicle. It ensures that the driver is not held liable for any costs associated with repairing or replacing the rental car.
The CDW insurance policy may be included in the car rental agreement or offered as an additional coverage option. It is advisable to read the rental agreement carefully before signing it to determine if CDW coverage is included or not. If it is not included, it is recommended that the driver purchases the coverage to protect themselves from any unforeseen circumstances.
Many credit card companies may offer CDW coverage to their clients if they use their credit card to pay for the rental. However, it is important to check with the credit card company to see if the coverage is applicable and to what extent. Some credit card companies may have limitations on the coverage provided, and it is essential to understand these limitations before assuming that the coverage is adequate.
In conclusion, Collision Damage Waiver (CDW) is an optional insurance policy that car rental companies offer to drivers. It eliminates any responsibility of the driver in case of an accident and covers any damage that may occur to the rental vehicle. CDW coverage can be included in the rental agreement or offered as an additional option. It is advisable to understand the terms and conditions of the rental agreement and to check with the credit card company for any additional coverage provided.
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