Collision Deductible Waiver Explained | What It Is and Why You Need It

A Collision Deductible Waiver or CDW is the additional insurance purchased for collision coverage. It implies that it would pay your...

A Collision Deductible Waiver or CDW is the additional insurance purchased for collision coverage. It implies that it would pay your collision deductible if your car suffered damages in an accident caused by an uninsured driver.

Often, for people having collision coverage, the costs of repairing the car would be subjected to a deductible. It implies that the car owner would pay the initial portion of the claim to a specific amount. It may cost you a decent amount.

While adding a collision deductible waiver, the insurance company would waive your deductible. It implies the repairs from the accident caused by an uninsured driver would not burn a significant hole in your pocket.

How collision deductible waiver is different from the uninsured motorist property damage?

It would be pertinent to mention here that collision deductible waiver and uninsured motorist property damage would cover similar scenarios, they are relatively different. The collision deductible waiver would take care of the cost of the deductible, provided you have collision insurance while an uninsured driver causes the accident or damage.

The uninsured driver’s property damage would protect the drivers not having collision coverage from the costs of damage or accident caused by the uninsured drivers.

When is the collision deductible waiver not applicable?

Find below a few vital situations when the collision deductible waiver is not applicable. It would not cover you in the following situations.

1. When no other driver is involved

If you have driven your car into a pole or a tree, the deductible waiver would not apply to the situation. There should be another driver involved.

2. When the other driver has an insurance

In such a scenario, the liability insurance of the other driver would handle the cost of vehicle repairs.

3. In a hit and run case

Despite a hit and run case putting you in a similar situation where an uninsured driver causes the accident, the collision deductible waiver would not be applicable.

4. When you were jointly at fault for causing the accident

To apply for the collision deductible waiver, you would not need to be at fault. It should be clear that the other driver is responsible for causing the accident.

Is it better to get a collision deductible waiver?

If you have collision coverage, the added costs for the deductible waiver would not cost a fortune. You would be required to add a small amount to your premium costs, which would be relatively less than the deductible.

It would be your prerogative to purchase a collision deductible waiver. The deductible waiver would be applicable in specific scenarios. Therefore, you may not need it.

You may also wonder about the need for purchasing collision coverage. For an older vehicle, the value of the vehicle for the insurer would be relatively low. It implies that the payout you get for a claim might not be worth paying a slightly higher premium for collision coverage.

Purchasing uninsured motorist property damage coverage would ensure in your best interest. However, consider looking forward to purchasing liability rather than having full coverage.