Advantages of CDW Insurance

CDW insurance (Collision Damage Waiver) is a type of rental car insurance that is usually required to cover any rented car. This auto insurance coverage is similar to collision insurance coverage, except that it applies only to cars which are rented. CDW insurance, like collision insurance, helps to pay for any damages to your rented vehicle caused by an accident where you are at fault. This way, car rental companies protect their vehicles and are at less risk of losing money. CDW insurance can be advantageous for multiple reasons, as described below.

Advantage 1: Saves Money in a Crash

Insurance policies are designed to make sure something is covered financially when there is an accident, be it property damage, bodily injury or theft. Collision damage waivers are no different in this regard. If you are involved in a car accident while driving a rented vehicle, CDW insurance means that you won’t have to pay for all of the damages. The rental car is covered up to some amount, so you won’t be emptying your pockets to cover the costs.

Advantage 2: Drive with Peace of Mind

The charge for CDW insurance can be worth the advantage of driving without worrying about getting in an accident and not being covered. Driving without insurance isn’t just risky; it’s usually illegal. With CDW insurance and whatever other insurance the rental company requires, you can drive comfortably and legally without worrying about potential damages.

Advantage 3: Convenient and Inexpensive

In most cases, rental cars are rented for fairly short periods of time – vacations, business trips and the like. If you’re only renting the car for a short time, you won’t have to deal with all the hassle of monthly premiums and everything else that comes with a standard insurance policy. Most of the time, you can take care of your CDW insurance with a single payment to the rental company when you rent the vehicle. Also, if you have the car for a short period of time you have less time to get into an accident, making you a low risk to insure (if your past driving history is good). This can result in a single low payment which covers the entire cost of insurance.

Advantage 4: Easily Obtained

Generally, CDW insurance is as easy as making a single payment to the rental company. There’s no comparison shopping with a dozen different providers or anything like that; just one payment and you’re done.

Be Aware

Just because you get a collision damage waiver doesn’t mean you’re automatically off the hook for all damages incurred. Most CDW insurance policies only cover up to a certain amount or may involve a deductible, so make sure you’re aware of precisely what the policy is before you purchase the insurance.

CDW insurance has many advantages such as convenience and being inexpensive, not to mention it’s almost always a requirement if you want to drive a rental car. As long as you’re aware of what’s covered under the collision damage waiver before you drive off, you should be able to pay for your policy easily and worry free.