What is a collision deductible waiver?
What Is A Collision Deductible Waiver?
CDW, also called a collision deductible waiver, is an optional insurance coverage you can purchase as part of your automobile insurance plan. This optional coverage will pay for your collision insurance deductible if your vehicle listed on the policy is damaged in an accident, and the at-fault driver is uninsured.
In many cases, if you are in an automobile accident where the at-fault motorist is not insured, you will need to use your own collision insurance plan to get your vehicle repaired. This includes paying for your collision insurance deductible. With a collision deductible waiver added on to your policy, you do not need to pay this deductible when your insurance provider determines that the liable party does not have insurance.
How Does The Collision Deductible Waiver Help?
There are many people out on the road that does not have insurance coverage. If they are found to be at fault in an accident, your collision deductible waiver can help you save a lot of money. If you have a $1,000 deductible, you would not have to pay this deductible for your collision insurance coverage to kick in and help pay for costs. The CDW only kicks in, however, when the other driver is identifiable, and there is physical contact between multiple vehicles. Some car insurance services have exceptions to these requirements, though they are harder to find. Even with a hit and run accident, the driver must be identified and determined to be at fault in order for the collision deductible waiver to help.
Collision Deductible Waiver Vs. Uninsured Motorist Property Damage
A collision deductible waiver is different than uninsured motorist property damage. One of them covers costs for the vehicle by paying for a collision insurance deductible when the at-fault driver that damages the vehicle is determined to be at fault. Uninsured motorist property damage coverage covers the cost of damage to property specifically.
Situations Where The Collision Deductible Waiver May Not Apply
A person’s CDW might not apply if they have insurance that already does not have a deductible involved. In addition, if the at-fault driver is not identified, the CDW will not kick in. Very specific requirements need to be met for a collision deductible waiver to apply. That said, there are large numbers of uninsured motorists on the road, and some states have more than others. If your state has a high percentage of uninsured drivers, you may want to get a collision deductible waiver to help cover the cost that an accident could bring.
Should I Get A Collision Deductible Waiver?
If you are in a more risky area in terms of uninsured drivers, accidents, or are looking for peace of mind, a collision deductible waiver can assist. Many people do not have $1,000 laying around to pay for an auto insurance deductible on their collision insurance policy. Paying a smaller amount per month for a CDW can help you spread your expenses out, providing relief against an accident.
Paying for a collision insurance deductible can be a pain, particularly if they are higher deductibles. Collision deductible waivers help provide peace of mind. There are many ways a person can save money on their auto insurance policy, leaving more money to pay for collision deductible waivers or other expenses a person has.
Comparison-shopping is one of the top ways to save money on an automobile insurance plan. Using the tools on this website, you can get the best prices available for automobile insurance policies that fit your needs. If you get a CDW, you get additional peace of mind knowing that the collision expenses related to automobile accidents are already paid for, up to your insurance limit. Make sure you are getting a limit that will suit your needs if you are involved in an accident, as expenses above a person’s car insurance limit will need to come out of the policyholder's pocket.
It is recommended to get auto insurance quotes from numerous companies when comparing rates. Many people get quotes from four companies, five companies, or more. This does not need to take a lot of time to do overall. With all of the resources here on this website, you can be insured at a fantastic rate quickly and easily. Having a valid insurance plan can save you from fines, fees, and in the case of collision deductible waivers, even deductibles. The first step to the process is finding a car insurance plan that fits your needs at the best rates possible. This is the top spot to get this done.