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Written by:
Prachi Singh
Contributing Writer
Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.
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Reviewed by:
Laura Longero
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Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

A collision deductible waiver, or CDW, (also known as a collision waiver of deductible) is coverage you can buy as part of your car insurance policy that will pay your collision deductible if your insured vehicle is damaged in an accident. The person liable is an uninsured driver.Two men arguing after a car accident

Typically, suppose you are in a car accident where the at-fault motorist is uninsured. In that case, you use your collision coverage to repair your car, including paying your associated collision deductible. If you purchase a collision deductible waiver as part of your policy, your collision deductible will be waived when your insurance company determines that the liable party is uninsured.

With too many drivers operating without insurance on the roadways, this coverage can keep you from paying out-of-pocket for any of your vehicle’s repairs if one hits you. It’s beneficial coverage if you have a high collision deductible.  

How does a collision deductible work?

For example, if you have a $1,000 collision deductible and an uninsured motorist hits you, the CDW will cover your $1,000 deductible amount, and then your collision coverage will pay for the remaining cost of the repairs to your vehicle.

This deductible waiver is usually only available when there is actual physical contact with another vehicle and the accident is caused by an identifiable driver.

Miss-and-run and hit-and-run accidents are not normally covered unless the at-fault driver is identified as uninsured.

As you can imagine, if people could use the waiver without the other driver being known, some drivers would try to claim single-car accidents as a hit-and-run to waive their deductible when they were at fault.

Does a CDW apply in states that allow partial liability?

In states that allow a percentage of liability to be assigned to each driver involved in an accident, you cannot be found partially at fault, or this coverage won’t apply. So, if you are found 10% at fault, you can’t use your CDW and would have to pay your deductible amount.

The collision deductible waiver can be purchased only in conjunction with collision coverage and is not available in all states or by all car insurance companies.

Depending upon the state and guidelines of the insurance company, you may also have to carry uninsured motorist coverage to carry collision deductible waiver coverage.

 — Penny Gusner contributed to this story.

Laura Longero

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Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

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John McCormick

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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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Contributing Writer

Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.