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Blog Car hire tips Car hire tips | What is CDW?

Car hire tips | What is CDW?

When we hire a car we usually come across words and phrases that are unfamiliar to us. We talked to our Customer Service Manager Petra Demsar to help us explain some of the basic expressions in car rental.
Table of contents

What exactly is CDW (Collision damage waiver)?

CDW or Collision damage waiver - is a protection of the hired car that usually covers the bodywork of the car. Our customers are often unaware that CDW normally doesn't cover:
internals, roof, and undercarriage 
windows and mirrors
wheels and tires
undercarriage
engine
flat battery
personal belongings
key loss, lockout
additional equipment, such as GPS, child seats or ski racks
towing and roadside assistance costs.

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What about excess coverage?

Car hire companies are the insurance holders that can pass on their full liability to you or they can ask you for the liability up to a certain amount. That amount is called your »excess« or in the US your »deductible«. In other words, if the car you booked has CDW included, you'll most likely have an excess amount – that amount is the maximum you, as the driver, will pay in case of bodywork damage. Some car hire companies offer cars where the excess amount will be zero. That means you are not liable for any bodywork damage.

What does TP you mentioned before cover?

TP or theft protection covers the amount the car hire agency can claim from you in case your hired car gets stolen or damaged when someone tries to steal it. 

And there is also the third party liability coverage?

TPL or third party liability protects you in the event you hurt anyone or damage someone else's property with your hired car. 

How do I cover other parts, those which aren't covered by CDW?

At the pick-up, the car hire agent will offer you an additional insurance which will be extra charged. That insurance is not legally required, but it will most likely reduce the excess amount, and cover parts of the hire car CDW does not include. Or you can always protect your excess with us. Here you can read more about our coverage. 

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