Is a collision damage waiver a form of insurance?
From the prospective of a renter, collision damage waiver (CDW) offered by the rental agency is not insurance. A CDW releases a renter’s liability for any physical damage that the vehicle sustains in exchange for a payment. It does not release the renter from any person or corporate liability as a result of the rental or operation of that vehicle. What is the definition of an “insured contract”? Within a standard ISO commercial auto coverage policy, an “insured contract” includes a rental agreement, but does not provide coverage for property damage to any rented or leased vehicle. It is important to note that the commercial auto policy has evolved over years and older versions may need to be endorsed to extend “insured contract” to rental agreements. What is “hired auto physical damage” coverage? It provides coverage for physical damage to a hired vehicle. On a standard commercial auto policy, “hired” is defined as an “auto leased, hired, rented or borrowed.” This does not include vehi
