Should You Get a Collision Deductible Waiver? Find Out Here

What is a Collision Deductible Waiver?

A collision deductible waiver (CDW) is an add-on to your car insurance policy that eliminates or reduces the amount of money you have to pay out-of-pocket when you’re in an accident and your car is damaged.

In most cases, your car insurance policy will require you to pay a deductible before the insurance company will start paying for repairs to your vehicle. The amount of your deductible will vary depending on the insurance company and the type of policy you have.

A CDW can be a helpful way to save money if you’re worried about being able to afford a deductible in the event of an accident. However, it’s important to note that CDWs can also increase the cost of your car insurance premiums.

Do You Need a Collision Deductible Waiver?

The decision of whether or not to purchase a CDW is a personal one. There are a few factors you should consider before making a decision, including:

  • Your financial situation. If you don’t have a lot of money saved up, a CDW can be a good way to protect yourself from having to come up with a large sum of money in the event of an accident.
  • The value of your car. If you have a relatively new car, you may want to consider purchasing a CDW to protect your investment.
  • Your driving history. If you have a history of accidents or tickets, you may be considered a higher risk by insurance companies and may be required to pay a higher premium for a CDW.

If you’re not sure whether or not a CDW is right for you, it’s a good idea to talk to your insurance agent. They can help you assess your individual needs and recommend the best coverage options for you.

When You Might Need Auto Storage Insurance
If you won’t be driving your car for a long time, you may not need full coverage car insurance.
Here are some examples of when you might not need full coverage car insurance:

  • You are traveling abroad for a long period of time.
  • You are a student going to a new city for school and are not taking your vehicle with you.
  • You will not need your car to commute to work for a few months.
  • Your vehicle is damaged and you are unable to repair it yet.

If you are parking your car for months at a time, you may want to consider reducing your car insurance coverage.
Collision deductible waivers can only be used if you are not at fault for the accident and the other driver is uninsured. You cannot use a collision deductible waiver if you are at fault for the accident, if you are the only person involved in the accident, or if you are hit by a driver who flees the scene.

What is the difference between CDW and uninsured motorist coverage?
CDW is a collision deductible waiver that waives your deductible if you are in an accident with an uninsured driver.
Uninsured motorist coverage protects you from paying for injuries/damages caused by an uninsured/underinsured driver.

Do I need a collision deductible waiver?
It depends on your risk tolerance. If you want comprehensive auto insurance that protects you from paying out-of-pocket expenses like deductibles or damages caused by an uninsured driver, then you may want to consider adding a collision deductible waiver to your policy.

How to reduce your deductible
There are a couple of strategies you can use to reduce your deductible amount, such as:
Vanishing deductibles: Many insurance companies offer vanishing deductibles. This means that good drivers will pay less (approximately $50-$100 a year) for their deductible for every year they aren’t involved in an accident.
Lower deductibles: You can also lower your deductible amount, although this will result in higher premiums.
The trick is finding the perfect balance between how much you pay for premiums versus having low-to-no-deductible.

Collision Deductible Waiver: Worth It?

Whether a collision deductible waiver is worth it depends on the policyholder. If you don’t have a vanishing deductible and want the peace of mind that you won’t have to pay a deductible if you’re hit by an uninsured motorist, then you should consider adding a CDW to your policy.

Ultimately, having a collision deductible waiver is not mandatory, so whether it’s worth it to you depends on your auto insurance needs and your personal risk tolerance.

Should You Get a Collision Deductible Waiver? Find Out Here

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