CDW vs excess insurance

Sus59

Sorry if this is a stupid question but I am confused about Collison Damage Waiver and Excess Insurance.
I'm about to hire a car abroad and have obtained quotes for excess insurance as I have been advised this is cheaper than buying insurance directly from the car rental company.
However, some car hire firms include CDW and other don't (meaning they are cheaper).
Is CDW the same as excess insurance and can I do without it if I buy excess insurance elsewhere (which I believe covers up to 5K)?
The car hire quote I have says it includes insurance but that CDW is extra (£10 per day).
Thanks in advance for any clarification :-)

eDicky

'Abroad' could be anywhere, but in Europe the CDW included with car hire usually involves an excess, which Is what you are buying the separate insurance to cover.

The hire firm will offer you their own excess cover, which you can simply and firmly decline without giving the reason, and they will need to pre-authorise an amount on your card to cover the excess. In the event of any damage they will charge you that amount and you will need to get an invoice and claim it from your separate insurance.

Make sure all existing damage is noted when you take the car, as they are often more likely to check and 'find' some if you don't buy their excess cover.

Sus59

I'm talking about Europe only thanks. So I do need CDW as well as my excess insurance?
One quote I got states that insurance is included and the CDW can be bought for £10 per day. Another quote I got included CDW but was £50 dearer for 7 days. If I do need the CDW then obviously that one is the better option.

NiftyDigits

Sus59 wrote: »

I'm talking about Europe only thanks. So I do need CDW as well as my excess insurance?
One quote I got states that insurance is included and the CDW can be bought for £10 per day. Another quote I got included CDW but was £50 dearer for 7 days. If I do need the CDW then obviously that one is the better option.

Why not just show the quote in so that we can see for ourselves?

zagfles

CDW is nearly always included for car hire in Europe. The main exception is business hires I think. But it nearly always has a big excess. Maybe £500-1000. That's what excess insurance is for.

It's the way car hire operates. They tell you CDW is included. You think you're fully insured, turn up at the desk and they tell you that there's a £1000 excess on the CDW. They say they need to reserve £1000 on your card and it'll be charged if there's any damage. You may not have £1000 headroom on your card. You may panic at the thought of being £1000 out of pocket if there's an accident.

But they have a solution - you can buy an excess waiver for £250. Sometimes called "Super CDW". You have the choice of paying another £250 or risk paying £1000. You haven't got much time to think about it. You're tired after a flight nd just want to get your car and get going. Do you think there's more than a 1 in 4 chance of an accident? Maybe not - but you're risking £1000. Maybe better just to pay the £250. Even if it's a complete and utter rip-off.

Alternatively - you can buy excess insurance in advance for £50 or less. You still need the headroom on your card, but you avoid the rip-off.

Some car hire companies claim there is no CDW excess. But then they exclude half the car from their CDW, eg roof, underside, glass, tyres etc.

Others exclude claims for "negligence" - yeah how many accidents are not the result of someone's negligence?

Car hire is a minefield. Always check what's included, read the small print, and get a decent excess policy.

Sus59

Thanks for your replies. I'll get a car with CDW and get the excess insurance also :-)

eDicky

Sus59 wrote: »

Thanks for your replies. I'll get a car with CDW and get the excess insurance also :-)

As Zagfles mentioned, it's almost certain that any car hire in Europe already includes CDW (but with a substantial excess).