Understanding Collision Damage Waiver (CDW)

Renting a car can be a confusing experience for beginners, particularly with the inclusions of services and coverage. Collision Damage Waiver is often a mandatory insurance policy among car rental companies in UAE. You’ll either be required to secure fully comprehensive or third-party insurance as part of the standard agreement. The waiver cost depends on various factors, such as the destination, duration, and the car model.

Without a Collision Damage Waiver or CDW, it is the renter’s responsibility to cover repair expenses in the event of an accident. That won’t be the case if you have a CDW. The repair work cost for damages done to the exterior of the rental car will be covered by insurance. The limits and specifics of the waiver will all be described in the rental agreement. Thus, it’s essential to ensure you have the right level of cover.


Here are the advantages of having a Collision Damage Waiver with your car hire UAE:

Reimbursement protection. If you refuse a CDW, you are putting yourself at risk of buying the rental company a new vehicle. A personal auto policy only requires an insurance company to pay the lesser amount of the damaged vehicle’s actual cash value or simply the amount necessary to have it repaired or replaced. However, most rental agreements will require clients to reimburse the full cost of the vehicle in question. A Collision Damage Waiver will protect you from paying that big difference.

Future payments protection. Most rental agreements will require immediate payment for damage repairs in the event of an accident. The rental company will use your credit card to make sure they get it. In addition, you will be held responsible for paying them their ‘loss of income’ during the time that the damaged vehicle is in the shop. Thus, a CDW will not only save you from paying expensive collision repairs but also from fees you have to pay in the succeeding days or weeks. This is a thing to consider when booking cars for rent in UAE.

Protection from the legal battle. Your auto policy has coverage gaps and may exclude some vehicles and territories. For instance, you might only get 1,800 AED coverage in damage to a trailer, and no coverage to damages done to a motorcycle or motorhome. It can also exclude accidents that happen outside a particular region. In other words, your auto policy is not intended to be the first in line to cover you in case of an accident. A CDW is designed to do just that. You might find yourself going to court if you insist that your personal auto policy should cover the damages.


Protect your driving record and save your deductible by paying the low cost of a Collision Damage Waiver or CDW. It’s a one-time investment that can save you from a lifetime of unwanted expenses. A CDW also offers theft protection. To know more about how CDW can help you or if you’re looking for the best car lease deals, contact Eurostar Rent A Car UAE today! Call 600 587004 or 600 587005.