If you are renting an automobile, you should be given the chance to purchase a collision damage waiver (CDW). Should you take advantage of that opportunity?
What is a CDW?
When it comes from a rental car agency, if represents an agreement to waive the cost for any possible repairs in exchange for a fee. That fee is usually between 15 and 30 dollars per day.
What damages are covered by a CDW?
• Cost for repairs
• Towing costs
• Loss of use fee: A rental agency normally charges that fee for each day that it cannot rent out the damaged vehicle.
All of the coverages mentioned above become available to the buyer of the waiver; furthermore, the same buyer does not have to pay a deductible.
Added advantages enjoyed by purchaser of collision damage waiver
• Removes need to worry about a rate hike, due to the reimbursement of repair costs
• Reduces the chance that the driver of the damage vehicle will have to deal with the insurance company
Drawbacks to purchase of CDW
• It increases the size of the payment for the rental car.
• It does not cover certain car parts, such as the windshield and the tires.
• It does not cover injuries. In other words, it does not reimburse the CDW’s holder for any money that was spent on either medical bills or damage to another person’s property.
Possible alternatives to a collision damage waiver
Insurance from the credit card company, if card was used to rent the damaged automobile. Injury Lawyers in Ottawa understands that any one that has chosen that alternative should realize that specifics about the associated insurance coverage should change repeatedly.
A travel insurance policy, if the customer renting the car has already purchased one: A smart consumer always checks to see exactly what types of coverage get provided to the buyer/policyholder.
Questions that should be answered by the rental agency
Normally, comprehensive insurance does not cover any damage that might have been caused to a collision with an animal. The customer at a rental agency should ask whether or not the collision damage waiver would cover that sort of damage.
Would the CDW’s coverage become available to a customer that has been hit by an uninsured motorist?
Could that coverage be used to calculate the size of the payment, if the renter of an automobile had purchased, as well, an underinsured motorist option?
Does it pay to buy collision damage coverage?
The answer to that question depends on the amount and type of insurance that has been purchased already, by the man or woman that has expressed a desire to rent one of the agency’s cars, trucks, vans or SUVs. The same customer might also seek answers to a few additional questions.