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Car is one of the most convenient commuting options in today's times. But not everybody can afford to buy it. However, one can always rent a car to travel places, without having to actually purchase one. When you drive a rental car, it becomes your responsibility to ensure you cause no damage to the car and even to others driving on roads. To protect the renter i.e, the car owner from financial implications that can arise if the rented car is involved in an accident, a collision damage waiver can come in handy.

What is Collision Damage Waiver Cover?

Collision damage cover, as the name suggests is a type of insurance cover that offers protection to the vehicle owner in case if the car is involved in an accident. If the renter has purchased a CDWC cover, then he does not have to worry to pay for the damages of the rented car in case the car gets damaged due to a collision. This type of insurance is provided by car rental companies to protect the vehicle owner against financial implications that may arise out of the damages caused to the rented car.

Inclusions of Collision Damage Waiver Cover

The inclusions of the CDWC cover may vary depending on the rental company. It is best to check on the coverage before buying such a cover. Generally Collision damage waiver cover offers the below coverage:

• Theft of the rented car
• Damages caused to the body of the car i.e. dents, scruffs, etc.
• Towing expenses

Exclusions of Collision Damage Waiver Cover

A collision damage cover cover does not offer coverage for the following:

• Damages caused due to not following the traffic rules
• Damages caused to third party or property
• Damages caused to the rented car’s parts such as wheels, roof, windscreen, battery, gearbox, wheels, tyres
• Damages caused due to drunk driving or driving at a very high speed

Difference Between Collision Damage Waiver Cover and Car Insurance

Collision Damage Waiver and car insurance are different as the former only offers coverage for rented cars. On the other hand, car insurance policy offers coverage for a car that you have purchased for personal use and not for renting. The scope of coverage of both types of insurance also varies as collision damage waiver cover provides cover only in case of damages caused to the car’s body and not to its parts. Whereas, car insurance provides coverage for both the car's body and its parts, depending on the extent of coverage chosen by the vehicle owner.

Collision Damage Waiver is not mandatory to purchase as per the law, whereas car insurance is a legal mandate as per the Motor Vehicles Act, 1988.

What is the Cost of Collision Damage Waiver cover?

The cost of collision damage waiver cover varies from rental company to company. The cost is not stated by the Insurance Regulatory and Development Authority of India, unlike for that of third party insurance cover .

It is necessary to buy Collision Damage Waiver for a rented car

Buying Collision Damage Waiver for a rented car is optional in India. However, buying one offers you the below benefits:

• Saves money

  With this cover, you don’t have to worry about spending money on repair of the car’s body parts in case the damage is caused due to a collision.

• Peace of mind

  CDWC offers coverage for theft as well which ensures you don’t have to worry about the financial implications arising due to theft of the car. This type of cover is popular in foreign countries and not in India. However, it is suggested you buy this cover to protect your rented car against theft and collision.

Also Read: Is it Possible to Include GST Number in Car Insurance Policy?