Before agreeing to purchase any insurance, it’s essential to understand the coverage and costs involved. Rental car companies may ask you to buy Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) insurance. These insurance options provide a reduced deductible payment if the vehicle is damaged or stolen, but the cost can vary greatly. If you’re curious about CDW, read on to learn more about it.
What Does It Cover?
The coverage of a Collision Damage Waiver can vary among rental companies, so it’s essential to read and fully understand the policy. Typically, a CDW covers damage to the car’s body, but there may be certain parts and components that are not covered. So, ask your rental company what’s covered and what’s not before signing any contract.
CDW coverage often excludes:
-Windows and mirrors
-Engine
-The car’s undercarriage
-The interior
-Flat battery
-Wheels and tires
-Personal belongings
-Lost keys
-Extras, such as child seats, racks, or GP
-Towing charges
Some rental car companies can be sneaky with their CDW insurance. For example, they may cover the outer shell of the wing mirror but refuse to cover the mirror’s glass or the mechanism that allows the driver to adjust the position of the mirror. Additionally, some insurances may cover the car’s roof, while others might not. So, read any documents before signing.
Will Collision Damage Waiver Cover All Costs of Repair?
Collision Damage Waiver coverage typically doesn’t cover all repair costs. Like most rental car insurance, CDW includes a deductible and the maximum amount the renter will have to pay for any bodywork repairs. The deductible amount is usually between $600 to $3,500. If any other part of the car is damaged, the renter will be responsible for paying the total cost of repairs.
Is It Worth It?
Deciding whether to purchase Collision Damage Waiver (CDW) insurance is a personal decision that depends on the individual’s circumstances. On the one hand, investing in CDW insurance can save money if the rental car is damaged. Without CDW, the renter may be responsible for paying a large deductible during repairs. However, CDW can be expensive and may double the total cost of the rental. If you’re an experienced driver and only planning a short trip, it won’t be necessary to invest in CDW.