Rental Car Companies Sell Collision Damage Waiver (CDW) Coverage Which Shifts Liability For Collision Damage From The Person Renting The Car To The Car Rental Company. Should I Buy That Coverage When I Rent A Car?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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In most cases you can save money by declining the CDW coverage. But before you act you should make sure that you have adequate coverage. Your own auto policy may cover you adequately — check your policy or ask your agent.

If you are traveling on business, your employer may have insurance which makes CDW coverage unnecessary — ask your employer. Many credit cards provide this coverage when you use them to charge the rental — read your credit card agreement.

If you only rent cars infrequently or are not sure if you have other coverage, you may find that it is preferable to pay the extra premium for the peace of mind.

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