What Is a Collision Deductible Waiver? Is It Worth It?

Last Updated on December 28, 2025

Most drivers know their collision deductible is what they pay out of pocket after an accident before insurance helps cover repairs. A collision deductible waiver (often shortened to CDW) is an optional add-on that can eliminate that deductible in a very specific situation: when an uninsured driver hits you and your own collision coverage has to pay for the damage.

CDW can be a useful “sleep-better” endorsement, but it’s not available everywhere, and it doesn’t apply in many common accident scenarios. Below is what a collision deductible waiver is, how it works, when it won’t help, and how to decide if it’s worth the extra premium.

Key Takeaways

• A collision deductible waiver (CDW) is an optional add-on that can pay your collision deductible when an uninsured, at-fault driver damages your car.
• You generally need collision coverage to add CDW, and availability depends on your insurer and state.
• CDW is limited: it often won’t apply in hit-and-runs, single-vehicle crashes, or accidents where you’re partially at fault.
• CDW is usually low-cost, and it’s most valuable if you have a high deductible or would struggle to pay that deductible unexpectedly.

What Is a Collision Deductible Waiver?

A collision deductible waiver is an optional policy endorsement that pays your collision deductible if your vehicle is damaged in an accident caused by an uninsured at-fault driver. Instead of paying (for example) the first $500 or $1,000 of repairs yourself, the waiver covers that amount so you have fewer out of pocket costs when getting your car repaired or replaced.

Good to know: CDW is easy to confuse with a “collision damage waiver,” which is a rental car product. This article is about the auto insurance endorsement that relates to your collision deductible.

Who Can Add a Collision Deductible Waiver?

Not every insurer offers CDW, and not every state allows the same versions of it. In general, you’ll need:

• Collision coverage on the vehicle (CDW is tied to collision claims).
• An insurer that offers CDW as a policy endorsement (availability varies by company and state).
• In some places or with some carriers, related uninsured motorist coverage may be required. If you’re sorting out these options, see the difference between uninsured and underinsured motorist coverage.

CDW is just one add-on among many types of coverage you can build into your car insurance policy. Whether it’s available for you depends on your state, your carrier, and how your policy is structured.

When Does the Collision Deductible Waiver Apply?

CDW typically applies only when all of the following are true:

• The accident is covered under your collision coverage.
• The other driver is at fault (not you).
• The at-fault driver is uninsured (not merely underinsured).

That last point is a big one. If the other driver has insurance but it’s not enough, CDW usually won’t help—your next steps depend on what coverages you carry and how fault is handled. If you run into disputes about what happened, this guide can help: what if the at-fault party lies about the car accident?

When the Collision Deductible Waiver Usually Does Not Apply

Even if you pay for CDW, there are common situations where you’ll still owe your deductible. Rules vary by insurer and state, but CDW often won’t apply in scenarios like these:

• You’re at fault (or partially at fault): Many CDW endorsements require the other driver to be 100% at fault. If you share blame, you may still need to pay your deductible.
• Hit-and-run accidents: If you can’t identify the other driver (and confirm they’re uninsured), the waiver may not apply. Learn more: hit and run accidents and insurance.
• Single-vehicle crashes: If you hit a pole, guardrail, or another object, CDW typically doesn’t help because there’s no uninsured at-fault driver involved.
• The other driver is insured: If the at-fault driver has valid insurance, CDW generally won’t apply (even if you temporarily use collision while liability is being sorted out).

How Much Does a Collision Deductible Waiver Cost?

CDW is usually a low-cost endorsement, but pricing depends on the insurer, your deductible amount, your vehicle, and risk factors like your driving history. In many cases, the added cost is just a few dollars per month, and carriers may charge more to waive a higher deductible.

The trade-off is simple: if you carry a $1,000 (or higher) collision deductible, paying a small amount each month can be worthwhile if you’d struggle to come up with that deductible unexpectedly.

Is a Collision Deductible Waiver Worth It?

CDW tends to be most valuable when:

• You have a higher collision deductible (like $1,000+).
• You drive in an area with a higher share of uninsured drivers.
• Paying your deductible on short notice would strain your budget.

It’s also worth looking at the bigger “uninsured driver” picture. Nationwide, uninsured driving remains a real issue. If you’re deciding how much protection you need, read: do you need uninsured motorist coverage?

On the other hand, you might skip CDW if you have a low deductible, rarely drive, or you’re comfortable covering your deductible in an emergency.

How to Get Collision Deductible Waiver Coverage

Not all car insurance companies offer CDW, and online quote tools don’t always show every endorsement option. If you want it, the easiest approach is:

• Ask the insurer (or an agent) whether CDW is offered in your state.
• Confirm the exact rules: hit-and-run treatment, partial-fault restrictions, and whether the waiver applies only to uninsured drivers.
• Compare quotes, then choose the deductible/endorsements that fit your budget. You can start here: shop around online.

FAQs on Collision Deductible Waiver

Collision Deductible Waiver: The Bottom Line

A collision deductible waiver can be a smart, inexpensive add-on if you carry collision coverage and want protection against being hit by an uninsured driver. Just remember it’s narrow coverage: it generally won’t apply to hit-and-runs, single-car crashes, or accidents where you share any fault, and availability varies by state and insurer.