Quick Summary:
- CDW usually reduces what you pay for rental vehicle damage.
- It often covers theft, but only when you follow reporting rules.
- Expect exclusions like tyres, glass, roof, and underbody damage.
- Check the excess amount and card hold before collecting keys.
Collision Damage Waiver, often shortened to CDW, is one of the most misunderstood parts of car hire in New York. It is not the same thing as car insurance, and it does not guarantee that you pay nothing after an incident. Instead, CDW is a waiver offered by the rental company that can limit, or sometimes remove, your financial responsibility for damage to the hired vehicle, provided you meet the terms.
This guide explains what CDW commonly covers in New York, the typical exclusions, how excess works, and what to confirm at the counter. Terms can vary by rental company, vehicle type, and the specific rate you choose, so always read your rental agreement, but the points below will help you understand what you are buying, or declining.
What Collision Damage Waiver is, and what it is not
In simple terms, CDW is an agreement that the rental company will waive some or all costs they would otherwise charge you if the rental car is damaged. In New York, this usually applies to collision damage and, depending on the wording, it may also address theft of the vehicle.
CDW is not liability cover. Liability relates to injury to other people, damage to other vehicles, or property damage. New York rental agreements typically include required liability coverage elements separately, and CDW does not replace those obligations.
CDW is also not the same as Personal Accident Insurance or cover for personal belongings. If items are stolen from the vehicle, CDW normally does not compensate you for those losses.
What CDW typically covers for car hire in New York
While exact scope varies, CDW commonly covers the cost to repair the rental vehicle after an accident or other damage event, up to a defined limit, and subject to an excess. If the vehicle is declared a total loss, it may cover the vehicle value assessed by the rental company, again subject to your excess and contract terms.
Many New York car hire packages describe CDW as covering collision damage, vandalism, and sometimes theft. If theft is included, it usually applies to the vehicle itself, not items left inside it.
CDW can also apply whether you are at fault or not. Even if another driver hits your car, the rental company may still process the damage charge against you first, then you seek reimbursement through the other party, your insurer, or your card provider. With CDW in place, your immediate liability to the rental company is usually reduced, which can be the practical benefit travellers care about most.
Excess, deductible, and what you may still pay
Even when CDW is included, you may be responsible for an excess, also called a deductible. This is the maximum amount you pay towards a covered damage claim. For example, if the excess is $1,000 and repairs are $3,000, you typically pay $1,000 and the waiver covers the rest. If repairs are $600, you may pay $600.
Some offers describe “zero excess” CDW, but you still need to confirm whether that truly means no damage charges at all, or whether specific parts are excluded. Also be aware that the rental company can place a security hold on your payment card when you collect the vehicle. The hold amount often depends on whether you take CDW and the level of excess.
If you are comparing options for car hire, it helps to think in two layers: what the waiver covers, and what the maximum out of pocket cost is. A lower daily price can come with a higher excess, and a higher daily price can reduce it. The right balance depends on your risk tolerance and budget.
Common CDW exclusions in New York agreements
The biggest surprises tend to come from exclusions, not from the headline “covers collision damage” wording. In New York, many rental agreements carve out certain types of damage. Typical exclusions can include:
Tyres and wheels. Kerb damage, punctures, and wheel scratches are often excluded unless you have an additional tyre and windscreen product, or the waiver explicitly includes them.
Glass and windscreen. Chips and cracks may be excluded, or covered only when you can prove it was part of a broader collision event.
Roof and underbody. Damage from low clearances, potholes, ramps, or scraping is frequently excluded. This is especially relevant in dense city driving and when entering car parks.
Interior damage. Burns, stains, odours, or rips are commonly treated as negligence and excluded from CDW.
Misfuelling. Putting the wrong fuel in the vehicle is usually excluded and can be expensive.
Loss of keys. Key replacement, locksmith services, and towing resulting from key loss may be excluded.
Unauthorised use. If the car is driven by someone not listed on the agreement, CDW can be void.
Driving where prohibited. If the contract bans certain roads, off road driving, or specific crossings, damage incurred there may not be covered.
Because exclusions vary, take a moment at pick up to ask what is excluded under the CDW on your booking. If you are travelling with family or sharing driving, verify authorised driver requirements in writing.
Theft protection, reporting duties, and why paperwork matters
Where CDW includes theft, it nearly always comes with strict conditions. In New York, you are typically required to report theft, attempted theft, or vandalism to the police promptly and obtain a police report. You may also need to notify the rental company immediately and complete an incident form.
If the keys are lost, or if the vehicle is left unlocked, some agreements treat the event as negligence, which can void the theft element. Keep keys secure and avoid leaving the vehicle unattended with valuables in sight.
Loss of use, admin fees, and towing, are they covered?
Even when CDW applies to physical damage, rental companies may charge additional items. These can include towing, storage, appraisal fees, and an administrative charge for processing the claim. Another common charge is “loss of use”, a fee representing revenue the rental company says it lost while the car was being repaired.
Whether CDW waives these charges depends on the specific terms. Some waivers explicitly include loss of use, others do not. If you rely on a third party reimbursement product or card cover, check whether it reimburses loss of use and admin fees, because these are common gaps.
How CDW interacts with credit card benefits and travel policies
Some credit cards offer rental vehicle damage cover. It may be primary or secondary, and it often requires you to decline the rental company CDW for the benefit to apply. That can be attractive, but it can also mean you must pay the rental company first, then claim back later. In a high cost repair scenario, that can be stressful and can tie up funds on your card.
Travel insurance add ons that cover rental vehicle excess can also help, but they typically reimburse you after the fact. That is different from CDW provided by the rental company, which usually reduces what you owe the rental company at the time the claim is handled.
If you want a simple comparison mindset, ask yourself: do you want protection that works at the counter, or are you comfortable paying first and claiming later?
Practical tips for avoiding CDW disputes in New York
Most disputes come down to condition evidence, authorised drivers, and documentation. A few habits can make a real difference:
Inspect the vehicle carefully. Photograph all sides, the roof line, wheels, and interior before driving off. Make sure existing damage is recorded on the check out form.
Understand where you are driving. If you plan to cross state lines, for example into New Jersey, confirm that this is permitted and whether any fees apply. Airport traffic and toll roads can add complexity as well.
Follow incident steps. If an accident happens, get to a safe location, call emergency services if needed, notify the police where required, and contact the rental company as soon as practical.
Keep receipts and reports. If you pay for towing or a replacement key, keep the paperwork. It may be needed to support a claim or a dispute.
How to compare CDW across car hire options
When you compare car hire rates, look beyond the word “CDW included”. Instead, compare these line items: the excess amount, the exclusion list, whether theft is included, and whether fees like loss of use are waived. If the terms are unclear, ask for the coverage summary before you sign.
It can also help to compare policies across different pickup points and brands, because the same brand can have slightly different terms by location. For reference, you can review Hola Car Rentals location pages such as Hertz car rental New Jersey EWR, or compare with other major hubs like car hire Los Angeles LAX and National car hire Los Angeles LAX to get a feel for how inclusions are presented. Even though these are different cities, the way coverage is described can help you know what to look for in New York paperwork.
If you are planning a multi stop trip, seeing how add ons are displayed at other airports can be useful too, for example car hire airport San Francisco SFO. The key is to focus on the contract wording at collection, because that governs what CDW covers and excludes.
So, what does CDW cover in New York, in one sentence?
For car hire in New York, Collision Damage Waiver usually limits what you pay if the rental vehicle is damaged or stolen, but it often excludes specific parts like tyres and glass, and it can be void if you breach the rental agreement.
FAQ
Is Collision Damage Waiver the same as insurance in New York? No. CDW is a waiver from the rental company that reduces your responsibility for damage to the hired vehicle. Liability and medical coverage are separate items.
Does CDW cover scratches and dents? Often yes, as long as the damage is considered collision damage and not an excluded area or negligence. Small scratches may still be assessed, so pre rental photos help.
What is the difference between CDW and theft protection? Some contracts include theft within CDW, others list theft protection separately. Theft coverage usually requires prompt reporting and may be void if keys are lost or the car is left unsecured.
Will I still have to pay anything if I have CDW? Possibly. You may owe an excess, plus any excluded damage or fees not waived by the contract. Check the excess amount and exclusions before you sign.
What should I do after an accident to keep CDW valid? Follow the rental company incident process, document the scene if safe, report to police when required, and notify the rental company promptly. Keep all reports and receipts.
