What is Collision Damage Waiver/Car Hire Excess?
If you are hiring a car your car hire rental agreement should include Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), Third Party Liability and Theft. However, usually there is an excess on the CDW/LDW and Theft part of the rental agreement which means that you will have to pay the first portion of every claim. This excess is likely to range from about £500 to £2,000.
When you rent a car in the USA or Canada you will need Supplementary Liability Insurance (SLI) to cover losses incurred as a result of damage, fire, theft and vandalism. You will also need cover for an injury you may cause to other people. The SLI tops up your existing third party liability insurance and is only available upon payment of an additional premium.
How does it work?
This policy operates on a pay and re-claim basis. If you are held responsible to pay the excess to the Car Hire Company, you pay them directly and re-claim the excess amount back from us up to the policy limit.
Who can purchase a Collision Damage Waiver/Car Hire Excess policy?
Any Resident of the United Kingdom aged between 21 years and 85 years.
What do I do in the event of a claim?
Please refer to the Make A Claim page for details of how to make a claim.
What is the difference between a daily policy and an annual policy?
A daily policy will cover you for a ‘one off’ car rental agreement, and is only valid for the rental dates specified on the certificate of insurance. The maximum period is 180 Days on a Single policy. An Annual policy is valid for 12 months from the issue date and will cover you for unlimited car rental agreements so long as the individual car rental does not last longer than 62 days at any one time.
What is the maximum duration of continual cover allowed on this policy?
Daily policy - 180 days any one continuous rental. Annual policy - 62 days any one continuous rental, unlimited rentals.
What countries am I covered in?
Cover is provided on a European or Worldwide basis.
EUROPEAN POLICIES COVER
- The countries of the continent of Europe plus Morocco, Tunisia, Turkey and Israel but excluding any trip in, to, or through Belarus.
WORLDWIDE POLICIES COVER
- Anywhere in the world but excluding any trip in, to, or through Afghanistan, Belarus, Cuba, Congo, Iran, Iraq, Ivory Coast, Liberia, North Korea, Myanmar, Sudan, South Sudan, Syria or Zimbabwe.
Who underwrites this policy?
The insurance is underwritten by Certain underwriters at Lloyd’s in respect of Lloyd’s Syndicate 5820.
What is the difference between Excess, Super CDW, Non–Waiver and the Deductible?
Each car rental company uses different terminology, but they all refer to the same thing. When a car is hired, Collision Damage Waiver and Theft cover are included in the car rental price. There is always an Excess (also referred to as Super CDW, Non Waiver or Deductible) on the CDW and Theft portion of the rental agreement. This amount varies according to the car rental company, the location and the size of the vehicle, and can range from £200 - £2,000.
Will the car rental company pre-authorise my credit card when I have your Excess Insurance?
Each car rental company will have their own policy and procedures on deposits. A number of companies will either pre-authorise or debit a sum equal to the Excess from your credit card, while others may merely take an imprint.
I have a credit card which covers my Collision Damage (CDW) – Do I need your coverage?
You should carefully read the policy that is provided by the credit card company to determine the coverage, ensuring that it covers the country in which you are renting the vehicle, and whether or not there is an Excess(non waiver, deductible) on the policy.
What is the Minimum and Maximum age limit on the policy?
You must be a minimum of 21 years of age and a maximum of 85 years of age at the date of hiring the vehicle.
What is the maximum coverage limit on the policy?
We will reimburse you for the excess, or repair costs up to a maximum of £7,500 (or equivalent in local currency) for any single incident under a single rental agreement. You can claim more than once but in total we will only reimburse you up to a maximum of £7,500 (or equivalent in local currency) during any one period of insurance. If a payment has been made in local currency any limits specified in this policy will be applied based on the exchange rate that applied at the time of the purchase of Your policy.
If you are hiring the car in the USA Canada, the Caribbean or South America, it is generally the case that your car rental will not include insurance. The renter must purchase CDW (Collision Damage Waiver)/LDW (Loss Damage Waiver) and Supplemental Liability Insurance. The CDW/LDW cover is included in our worldwide cover up to $100,000 and our Supplemental Liability Insurance is available upon payment of additional premium.
N.B. Where you were covered by any other insurance for the same excess, we will only pay our share of the claim. At any point during the period of insurance we will only cover one rental agreement, rental agreements may not overlap.
Is there an Excess on this policy?
No excess applies to this policy, the amount deducted from your card will be the amount returned to you up to the limit specified in the policy.
What types of Vehicles are not covered by the policy?
Update answer to:
The policy does not cover rental of any of the following vehicles:
- A vehicle more than 10 years old
- A vehicle valued at more than £70,000 (or equivalent in local currency)
- A motor home, camper van, trailer or caravan, van, commercial vehicle or truck, motorcycle, moped, motorbike, off-road vehicle, recreational vehicle, high performance vehicle, prestige or exotic vehicle, passenger van or other vehicle with more than 7 seats.
Am I covered to rent a vehicle in my country of residence?
In order to purchase this insurance you must be a permanent resident of the United Kingdom. If you are permanently resident in the United Kingdom and you purchase this insurance then yes, you will be covered to rent in your country of residence.
What is Family Cover?
The Family Cover option extends cover for immediate family members listed on the certificate of insurance to rent vehicles independently, without the lead names accompanying them. Family Members defined as Mother, Father, Brother, Sister, Daughter, Son, Foster Child, Husband, Wife, Step parent, Step child, Step-sister, Step-brother, Parent-in-law, Son-in-law, Daughter-in-law, Sister-in-law, Brother-in-law, co habiting partners.