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Collision Damage Waiver

Rental Vehicles Collision Damage Waiver (CDW)

Employees are instructed to decline the optional CDW coverage (physical damage coverage) when renting a vehicle for university business and traveling in the United States, Puerto Rico and Canada. Collision Damage coverage should be purchased when traveling in other countries.

If an accident occurs the employee should:

  1. Submit an accident report, as soon as possible, to the rental company and file a report with University Police.
  2. Provide the Risk Management Department with a letter from the department head stating the purpose of the employee’s business trip and confirming that the accident occurred on university business.
  3. Forward to the Risk Management Department any correspondence received from the rental company regarding the vehicle’s damage.

After this information is received, the Risk Management Department will then take the necessary steps to reimburse the rental company.

When should an employee decline the Collision Damage Waiver or Limited Damage Waiver?

The Collision Damage Waiver should be declined when an employee is renting a vehicle for university business and traveling in the United States and Canada. When traveling outside of these countries, the required local insurance and physical damage insurance must be purchased. 

Should the CDW be declined if the employee uses the rental vehicle for personal use (e.g., sightseeing, vacation) before or after the scheduled business?

If an employee decides to use the rental vehicle for personal reasons on the days before or after the scheduled business, then the employee must decide to either purchase the collision damage coverage on the vehicle or be responsible for any loss or damage to the rental vehicle.