Collision Damage Waiver

25 Frequently Asked Questions

Is Collision Damage Waiver (CDW) insurance?
No. CDW is a physical damage waiver. Selecting CDW means you don't have to get physical damage coverage from your insurance carrier before you rent or lease a trailer. However, you are still required to provide liability coverage.

What's a waiver?
A waiver is a partial release of liabilities extended to the customer for loss due to damage or theft of our trailer.

What does CDW cover?
CDW covers collision damage, fire and theft of the rental/leased trailer.

What doesn't CDW cover?
CDW does not cover lost or missing trailers, cargo damage, towing or recovery of cargo or the tractor (power unit).

Are CDW claims reported to my insurance carrier?
No. XTRA Lease handles all claims and trailer repairs. In fact, CDW can help avoid insurance premium increases since damage claims are not reported to your insurance carrier.

Are CDW rates based on my previous damage claim history?
No. CDW rates are independent of your claim history. You get a competitive daily rate regardless of your previous damage claims.

If I submit a damage claim will my CDW rates increase?
No. A claim does not increase your rates. If you have a long-term lease agreement, your CDW rates are locked in for the term of the lease. However, if you incur an excessive number of CDW claims, we'll review the claims with you and determine the best course of action for continued coverage.

Can XTRA Lease cancel my CDW coverage?
XTRA Lease reserves the right to discontinue providing CDW coverage with 10 days’ written notice on rental or lease agreements.

Does the CDW program always cover me?
CDW covers you under the following conditions:

  • You must be in compliance with all terms and conditions of your rental or lease agreement.
  • You must be current on all payments.
  • All damage to a trailer must have occurred in the United States or Canada.
  • Damage or loss of your trailer must not have been the result of negligence and/or failure to maintain proper care or control of the trailer.
  • You must notify your XTRA Lease branch within 72 hours of any damage occurrence.
  • You must provide a copy of the police report to XTRA Lease, as well as any additional documentation required for XTRA Lease to process your claim.

Note: CDW coverage terminates immediately if the lessee defaults on any terms or conditions of their rental or lease agreement.

Does CDW cover trailer damage outside the United States (i.e., in Canada or Mexico)?
CDW only covers damage to trailers in the U.S. and Canada where repairs can be made following our repair guidelines. We do not cover trailers that are damaged or stolen in Mexico.

Does interchange insurance cover my physical damage requirements?
No. Interchange insurance only covers the trailer when it's connected to the tractor. Physical damage coverage or CDW is required on all rental or leased trailers.

Note: Interchange insurance does not meet our minimum coverage requirements.

What if an accident occurs after regular business hours or on a weekend or holiday?
You can contact our RoadWatch emergency road service team for immediate assistance 24/7/365. However, all claims must also be reported to your XTRA Lease branch within 72 hours of occurrence.

What's required to submit a damage claim?
Contact your XTRA Lease branch to report your trailer damage. When you submit your claim, your XTRA Lease representative will ask you some questions to get your claim started, such as:

  • What happened to the trailer?
  • Where is the trailer now?
  • Can the trailer be moved?
  • Is the trailer damaged or totaled?
  • Was a police report completed?
  • Are there photos available of the damage?
  • Were any costs associated with the recovery (i.e., towing, storage, etc.)?
  • Who should receive the invoice for your deductible?

When is my deductible due?
We will not mail you an invoice until we have received all of the information required to process the claim. In most cases, an invoice is mailed within two business days of the claim being processed. Rental charges will stop on stolen or totaled trailers when the deductible is received. Rental charges continue for trailers requiring repair.

Why is CDW better than Gap Insurance?
Insurance carriers often reimburse you for the Average Cash Value (ACV) of a trailer (based on their limited research) and not the present book value per the company renting or leasing the trailer. When this happens you end up absorbing the difference between the two. Transportation companies often purchase gap insurance to cover discrepancies between what insurance carriers pay (ACV) and the present book value of a trailer.
With CDW, the present book value of the trailer is always covered in full so you're never left paying the difference. You pay only your stated deductible.

Does CDW cover tire damage?
CDW only covers tire damage related to an accident or incident. CDW does not cover tire damage due to driver negligence or due to curbing, flat spots, blowouts or flat tires. Customers are required to properly maintain our trailers and consistently check tires for damage or excessive wear. CDW does not cover ordinary tire wear and tear.

Does CDW cover cargo damage or accident clean up?
CDW covers the recovery cost of our trailer. It does not cover cargo or tractor recovery. Depending on the type of claim, these items may be covered by your liability policy, cargo insurance or tractor physical damage policy.

Does CDW cover towing and recovery?
If you are unable to deliver the damaged trailer to a local branch or designated vendor, CDW covers the costs of towing and recovery of the trailer. You, the police or our RoadWatch emergency road service team can contact the wrecking service. XTRA Lease coordinates with the wrecking service to recover the trailer.

Is a police report required for all damage claims?
Yes. We require a police report for all CDW claims.

Who's responsible for salvage If the trailer is totaled?
XTRA Lease handles all of the requirements to store, dispose of and/or salvage the trailer.

Does CDW require a minimum term?
CDW requires no minimum term., and may be added to any rental or leased trailer at any time. You can request physical damage coverage for as little as a day or as long as the term of your rental or lease.  CDW coverage ends the minute you return your trailer.

Can I add CDW while a trailer is on rent or lease?
Yes. Just contact your local XTRA Lease branch to make arrangements. We'll need to inspect the trailer first, and then we can add CDW coverage effective immediately.

Who handles trailer repairs?
XTRA Lease coordinates the trailer repairs, serves as the adjuster and handles all paperwork associated with processing a damage claim. Because we coordinate the repair, you know the trailer will be fixed to our high standards.

How is CDW billed?
CDW is billed based on your pre-determined billing schedule. And you're only billed for the time your trailer is on rent or lease. CDW coverage is itemized on your invoice for easy visibility.

Does a CDW claim cover more than one damage occurrence on a single trailer?
No. A claim may only cover a single damage occurrence. Multiple occurrences over a period of time cannot be combined into a single claim.

Co​ntact us for more info​ on trailer rental/leasing or to add CDW to your trailers today!