Collision Damage Waiver

Collision Damage Waiver cover is a type of insurance offered by many car rental companies in the UAE. This cover helps protect drivers from any financial losses that may result from a collision or accident. It covers the cost of repairs to the rental car as well as medical expenses for any passengers in the event of an accident. more

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Car rentals in the UAE have become quite popular in recent years due to the convenience they offer. Not only are they more affordable than owning a car, but they also provide travellers with the opportunity to explore the country in a flexible and comfortable manner. 

Rental cars come in a variety of models and sizes, meaning that you, as a traveller, can easily choose the one that best suits your needs. Additionally, most car rental companies in the UAE offer discounts and even free upgrades if you rent for longer periods of time

What is Collision Damage Waiver?

A Collision damage waiver is an insurance coverage that you should take in case you are renting a car in the UAE. This type of car insurance plan is usually offered by car rental companies at the time of the rental process. 

So if an accident takes place when the car is rented to you, the car rental company will waive their right to make you pay for the repairs. They will cover the repair costs - you would be required to pay the excess amount only. As a car renter, you will be obligated to pay an excess ranging between AED 1,500 and AED 5,000.

Note -  A comprehensive car insurance plan does not cover the damages incurred by the car that you rented. 

With a collision damage waiver, you would be able to -

  1. Save money - In case your rented car accidentally undergoes a collision, you would not have to pay a hefty amount from your pocket to incur the repair costs in case only the car's body is damaged.
  2. Drive with peace of mind - Your collision damage waiver cover also covers theft. Thus, you do not have to stress about the financial consequences of the rented car getting stolen while you are relaxing on a road trip.

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What are the Inclusions for CDW Insurance in UAE?

When securing CDW insurance, you should be aware of the inclusions to know where you would not have to face any hefty expenses.

Here are some inclusions for CDW insurance coverage -

  • Damages to the car including dents and scuffs
  • Coverage for towing expenses of the rented car
  • Cover in case of theft, fire, and vandalism (to the rented car)

What are the Exclusions for CDW Insurance in UAE?

The Collision Damage Waiver insurance does not cover any expenses incurred if your rented car is in any of the following scenarios -

  • Any injuries that you incur in an accident caused by you
  • Any damages that you caused to a third-party car, property, or driver
  • Any damages to certain parts of the vehicle like tires, windscreen, gearbox, wheels, roof, and car battery
  • If you drive the vehicle into a barrier that is low enough to let your vehicle pass
  • Driving on a water-logged road and damaging the rented car’s engine
  • Damage on the rim due to driving the vehicle in spite of a flat tyre
  • Misusing the handbrake and burning the clutch
  • Accidents caused under the influence of substances
  • Car damage due to filling the wrong fuel or contaminated fuel
  • Car damage because of neglecting the warning light or traffic light
  • Installing an illegal object in your car’s interior or exterior
  • Damages that your rented car incurred because you left the windows open
  • Loss of the vehicle keys

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Do You Need Collision Damage Waiver Insurance in the UAE?

Car renting is a great idea in case you are a traveller or do not have enough funds to purchase a car. This not only adds to your convenience but also helps you save considerably. When you rent a car, it is advised to secure a CDW insurance plan from the car rental company. This coverage eliminates the burden of repair costs that you would need to pay out of your pocket.

However, if you need to pay a large sum, you are liable to pay the same. Note that you might not need additional coverage from your car rental company if you have a credit card.

Why Rental Car Has Become a Go-To Choice in the UAE

Difference Between CDW Insurance and Comprehensive Car Insurance

You should not confuse your car insurance plan with collision damage waiver insurance as the latter covers the repair costs of only rented cars. A car insurance plan, on the other hand, offers financial coverage for your own vehicle. Even the extent of coverage for both insurance types is different. 

Talking about CDW insurance coverage, it only covers some repair costs that you may incur in case of an accident. This insurance type does not cover third-party damages or physical injuries. A car insurance policy, on the other hand, offers broader financial coverage for your car. It also offers third-party liability cover in case you end up damaging third-party property or vehicle or cause physical injuries. 

Other Kinds of Rental Car Insurance Coverage

Here are the different types of car rental insurance coverage -

  • Super Collision Damage Waiver - This is an optional cover provided in addition to CDW insurance. When you opt for this insurance, you end up lowering the liability for any damage to the vehicle to ‘zero’. Simply put, you won’t have to pay anything from your pocket in this case. 
  • Personal Accident Insurance - This is another additional coverage that secures the drivers and passengers in the rented car in case there is a medical cost, emergency care requirement, or accidental death, up to a certain limit.
  • Miscellaneous Coverage Options - These options include coverage for windscreen damage or any non-mechanical breakdown during the rental tenure. Another coverage is Roadside Safety Net (RSN), which is meant to provide you with roadside assistance services while you are on the road and face a sudden breakdown. The services included under RSN are towing, flat tyre replacement, lockouts, jump starts, replacement of the lost key, and more. 

Under the miscellaneous coverage option, yet another coverage that can be discussed is the cover for flat or damaged tyres. It covers the additional charges that you would need to pay for getting the tyre repaired or replaced.

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Q1. Can you skip the purchase of collision damage waiver when renting a car in the UAE?

Ans. You can skip buying CDW insurance coverage if you have a credit card that comes with this feature.

Q2. Is CDW insurance a full coverage insurance plan?

Ans. Collision damage waiver is a full coverage insurance plan.

Q3. Can you buy CDW insurance for your privately-owned vehicle?

Ans. No, you cannot buy CDW insurance for your vehicle. This insurance is available only for rented cars or leased cars.

Q4. Can you convert your car insurance plan into a CDW insurance plan when you plan to rent a car?

Ans. No. This is because your car insurance plan and your CDW insurance plan are two different types of insurance products.

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