Collision Damage Waiver
We help you travel with confidence, wherever you go.
What Is Collision Damage Waiver?
A couple had rented a car to explore coastal towns on their European vacation. Midway through their trip, their parked vehicle was struck by another car. While no one was injured, the rental’s front end was significantly damaged. Unsure of their responsibilities, they reached out for guidance, concerned about potential repair costs.
Because their travel protection plan included the optional Collision Damage Waiver (CDW), I was able to explain how this benefit works. CDW helps reduce the financial responsibility for loss or damage to a rental vehicle due to events such as collisions, theft, or vandalism. I walked them through the documentation they would need, including the rental agreement and incident report, and explained how to file a claim under their travel insurance. By the end of our conversation, they understood their coverage and felt more confident working with the rental company.
~ Roxanne, Licensed Travel Assistance Agent with AXA
What Does Collision Damage Waiver Cover?
Collision Damage Waiver is designed to help protect travelers from unexpected costs if their rental vehicle is damaged or lost due to certain events. When this optional benefit is included in your travel protection plan, it may reimburse you for costs related to a range of incidents beyond your control.
Covered events may include :
Fire
Hail
Theft
Flood
Collision
Vandalism
Windstorms
Other causes not within your control while the car is in your possession
This benefit applies when the rental agreement is in your name and the vehicle is in your care during the covered period. Specific terms, conditions, and exclusions apply, so reviewing your plan documents is important to understand what may be covered.
How AXA Covers Rental Car Damage
AXA’s optional Collision Damage Waiver is available with both the Gold and Platinum Travel Protection plans.
What Benefits Does Collision Damage Waiver Provide?
When you include the optional rental car coverage with your AXA Travel Protection plan, the Collision Damage Waiver may help reduce your financial responsibility if a covered event causes damage or loss to your rental vehicle. Covered causes can include collisions, theft, vandalism, or specific weather-related incidents, as defined in your travel insurance plan.
Depending on the nature of the event, this benefit may include :
Repair Costs and Rental Charges
Reimbursement may be available for the cost to repair the vehicle and for rental company charges incurred while the car is being repaired.
Actual Cash Value
If the rental vehicle is declared a total loss, you may be reimbursed up to its actual cash value at the time of the incident, based on your plan’s terms.
Towing Expenses
If the vehicle requires towing due to covered damage, reasonable towing costs may be reimbursable, up to the applicable plan limit.
Maximum Benefit
Transportation of remains back to the traveler’s home country if death occurs during a covered trip
To be eligible for this optional benefit, you must be a licensed driver and listed on the rental car agreement.
What Are Your Responsibilities in Case of Rental Car Damage?
If your rental car is damaged or stolen during your trip, following the required steps can help ensure your claim is handled efficiently. Your actions immediately after the incident can impact how the benefit applies.
Protect the Vehicle
Take reasonable steps to prevent further damage. This may include moving the vehicle to a safe location or securing it from additional harm.
Report the Incident Promptly
Notify local authorities as soon as possible and inform the rental car company about the damage or theft. Prompt reporting is essential for eligibility.
Gather Key Information
If another party is involved, collect their name, address, driver’s license number, and any available travel insurance information to support your claim.
Submit Required Documentation
To file a claim, provide AXA with all necessary documents, including the rental agreement, a police report (if applicable), and a damage or loss estimate.
Always review your plan documents to understand the specific requirements for your coverage.
What Are the Exclusions to Rental Car Damage Benefits?
While AXA Travel Protection’s optional Collision Damage Waiver can offer valuable support during your trip, certain exclusions apply. Understanding what is not covered can help you make informed decisions when renting a vehicle.
Rental Car Damage benefits do not cover :
1. Contractual Obligations
Any financial obligation you agree to under a rental agreement, other than a collision deductible, is not covered.
2. Ineligible Vehicle Types
Rentals involving trucks, trailers, campers, off-road vehicles, four-wheel drive vehicles not intended for public roads, recreational vehicles, motorcycles, motorbikes, or exotic or antique vehicles are excluded from coverage.
3. Violation of Rental Agreement
If damage or loss occurs while you are violating the terms of the rental agreement, the benefit does not apply.
4. Failure to Report the Incident
Coverage is not available if the loss is not reported promptly to both local authorities and the rental company, as required.
5. Third-Party Damage
This benefit does not cover damage to other vehicles, property, or persons caused during a covered incident.
Rental Car Damage coverage is available with the Gold and Platinum travel protection plans. Review your travel insurance plan documents for full terms, conditions, and exclusions before purchase.
FAQs About Collision Damage Waiver Insurance
How much does Collision Damage Waiver insurance cost?
Collision Damage Waiver is an optional benefit available with AXA's Gold and Platinum Travel Protection plans. The cost of this coverage varies based on factors such as the selected plan, your travel destination, and your state of residency. The Gold Travel Protection plan offers up to $35,000 in rental car damage coverage, while the Platinum Travel Protection plan provides up to $50,000. To view pricing specific to your trip, you can request a personalized quote through AXA.
Who is covered under the Rental Car Damage benefit?
Coverage applies to the insured traveler who is a licensed driver and is listed on the rental car agreement. If these conditions are not met, the Collision Damage Waiver benefit will not apply. It is important that the rental agreement reflects your name exactly as listed in your AXA Travel Protection plan.
What is car hire insurance excess?
Car hire insurance excess refers to the amount you are personally responsible for paying if the rental vehicle is damaged or stolen. For example, if the excess is $500 and the total damage costs $1,000, you must pay the first $500. Some rental car insurance policies allow travelers to reduce or eliminate this excess by adding extra coverage or selecting a waiver at the time of booking.
Can I purchase Collision Damage Waiver after I have rented the car?
Collision Damage Waiver is an optional benefit available only at the time of selecting your AXA Gold or Platinum Travel Protection plan. If you have already rented a car without this benefit, you may need to rely on other available coverage, such as personal auto insurance or protections provided by a credit card. Review all coverage options before travel to ensure you are adequately protected.
Does Collision Damage Waiver cover a flat tire?
Coverage for a flat tire depends on the cause of the damage. If the tire is damaged due to a collision, such as hitting another car or object, the Collision Damage Waiver may apply. However, if the flat tire results from non-collision events like running over a nail or debris, it is generally excluded. Some rental companies also exclude tires, mirrors, and windows from standard CDW coverage. Review your plan and consider additional protection if needed.
Is the Collision Damage Waiver benefit available for all types of vehicles?
No. The Collision Damage Waiver benefit applies only to standard rental vehicles. Rentals such as trucks, trailers, campers, motorcycles, motorbikes, recreational vehicles, off-road or four-wheel drive vehicles not intended for public roads, and exotic or antique vehicles are excluded. Always check your plan documents to confirm if your rental qualifies.
What documents are needed to file a Rental Car Damage claim?
To file a claim, you will need to submit several documents, including the rental agreement showing your name, a damage report or repair estimate, a police report if applicable, and any correspondence from the rental company. Providing complete documentation helps ensure a smoother and faster claim process.
Does the Collision Damage Waiver cover third-party damages?
No. This benefit does not cover damage to other vehicles, personal property, or injuries to other individuals. It is limited to the damage or loss of the rental vehicle in your possession. You may need separate liability insurance for third-party claims.
When should I report rental car damage?
You should notify both the local authorities and the rental car company as soon as the incident occurs. In addition, AXA should be informed promptly after the event to begin the claims process. Timely reporting is essential for the Collision Damage Waiver benefit to apply. Delays in notification or missing documentation may impact your eligibility for reimbursement under your AXA Travel Protection plan. Be sure to follow the steps outlined in your plan documents.
Is the Collision Damage Waiver benefit available for international rentals?
Yes. The optional Collision Damage Waiver benefit is available for eligible rental vehicles used internationally, as long as all conditions outlined in your AXA Travel Protection plan are met. This includes being a licensed driver listed on the rental agreement and renting a standard vehicle that qualifies under the plan. Before renting a car abroad, confirm that your destination is covered and that the rental agreement is valid in the country you are traveling to. Additionally, international rentals must comply with all local laws and licensing requirements. Reviewing your travel insurance plan documents before departure can help ensure you understand what is covered and how to access the benefit if needed.
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