[1] Although it involves a transfer of risk, a damage waiver option is not insurance but instead a modification to the basic rental contract.
[2] In many countries, it is a legal requirement to have a damage waiver included in the basic car rental rate.
Alternatives to the CDW include other car insurance policies, some coverage from credit card issuers (Visa, MasterCard, American Express etc.)
[4] Other companies do not publicize where they include liability insurance in the basic rental charge.
[7] When a customer does not pay the car rental company to waive damage, and a rented car is stolen, or damaged by accident, vandalism, weather (hail), etc., the customer or other insurance must pay to the rental company the full cost of repair, plus administrative charges and, in some states, loss of use.
From some companies, in some states and countries, there are charges for towing, storage, impound, administrative fees[8] and diminution of value of the car (Avis,[9] Budget,[10] National,[11] Thrifty[12]).
[22][23] Some credit card issuers (Visa, MasterCard, etc.,) offer insurance for theft or damage to rented cars.
Visa and some MasterCards and American Express cards also cover theft, while other MasterCards and American Express cards include theft, vandalism, hitting a deer or chipping a window (sources at bottom of table).
[24] MasterCard and Visa in the United States say they cover "Physical damage and/or theft", but an introductory paragraph for some MasterCards[25] and all Visa[26] cards limits this to "collision or theft," so vandalism and hail are excluded.
MasterCards from Bank of America and MBNA generally have a simpler opening paragraph, which leaves coverage in place for any physical damage.
Citi® / AAdvantage®, Citi ThankYou®, Citi® Dividend or Citi CashReturns® MasterCard-branded cards are notable for providing coverage worldwide without geographic exclusions,[27] while most other MasterCard, Visa and American Express cards exclude coverage in Ireland, Israel, Jamaica.