If you’ve ever rented a car, you may have come across car excess waiver insurance as an option in the agreement. They’re good for one thing: covering any extra costs that may have incurred due to something happening to your rented vehicle. It is, however, an optional policy, meaning you don’t have to opt for it. With that, you might wonder, do you need it? What’s the catch if you tick it? Does the cost justify the benefits? 

In this article, we’ll talk about everything you need to know about car excess waiver insurance.

Collision Damage Waivers

Collision damage waivers (CDW) and car excess waiver insurance are the same things. It is an insurance policy that covers any excess payments that you would have otherwise paid for if you didn’t agree to the plan. 

For example, if you’ve run into an accident, the first payment would be made by you, which can range from a few hundred to thousands of pounds. That’s the “excess” that is covered by the CDW policy.

The Cost

Of course, if you genuinely believe that you will never ever get into an accident or know that your car will never be stolen, you can ignore the CDW. But of course, accidents are called accidents for a reason, and no security in the world is going to be theft-proof. With that in mind, you are most likely better off paying for CDW. 

Generally, if buying the policy from the same company you rented the car from, expect to pay around £20 every day during the renting period. Of course, the final cost will depend on a few factors: level of coverage, area, type of car, service provider, and many more. If that’s a little too much for you, then you’d opt for third-party vendors that offer the same service. They’ll cost as little as 10 per cent of the typical cost. In other words, you can end up paying as little as £3 a day. 

Logically, we’d recommend you opt for third-party services, but if you find that too inconvenient, then go ahead with the one offered by the rental company.

The Catch

When purchasing the car, you should remember not to tick the CDW box on the agreement. And here’s the catch, they’ll ask you to deposit a sum using your credit card. Although they might share scare stories about how much an accident will cost, do it anyways. That’s perfectly fine, and you know that you’re opting for third-party services anyways. 

CDW in Action

What should you do if you happen to have an accident? Remember, because you didn’t tick the CDW checkbox, you’ll have to pay the initial cost first. Here’s the important part: keep the receipt and paperwork. With that in hand, submit it to the third-party company that you bought your CDW policy from. After a few weeks, your money should be returned in the form of a cheque. 

Get your rented car insured right away. Remember, the money you spend now is tiny compared to what you will avoid should an accident occur. Your wallet will thank you later. 

If you’re looking for car excess insurance cover in the UK, get in touch with us today!  We’re happy to help!