You just rented a car, and you are ready to hit the open road. However, you must purchase the appropriate car insurance before you do. While a road trip might be exciting, choosing the right insurance for your vehicle can be overwhelming. Most people opt for Collision Damage Waiver (CDW) insurance, but is it really important? Let’s find out!
Read along to see what CDW insurance is and whether you really need it.
What Is CDW Insurance?
Before you agree to buy any insurance, you need to know what you’re getting into. When renting a car, it is sometimes necessary to purchase a Collision Damage Waiver (or CDW) or Loss Damage Waiver (or LDW).
With a rental-car insurance policy, you pay an amount each day that the car is in your possession. In exchange, if the car is damaged or stolen while it’s under your care and something goes wrong, this coverage will help you cover some of those costs.
This cost can vary, and it usually depends on your location and the type of car you’re renting. It is mandatory in Ireland and some other countries to purchase CDW insurance if you want to rent a car. Alternatively, you may need to provide proof of alternative or equivalent coverage.
What Does CDW Actually Cover?
This could differ from company to company, so it is best to make sure you fully understand the policy you could potentially purchase. Usually, CDW covers the vehicle’s body and any damage caused to it. While the insurance covers any structural damage to your vehicle, it typically doesn’t cover some parts and components.
CDW coverage excludes the following:
– The interior
– Mirrors
– Flat battery
– Windows
– Engine
– Tires
– The undercarriage
– Wheels
– Personal belongings
– Towing charges
– Lost keys
– GPS, racks, child seats, and other extras
Is It Worth It?
Finding a solution that works for everyone in every situation is challenging— you will need to consider the benefits and drawbacks.
Though the initial cost of CDW insurance may seem steep, it’s worth it to protect yourself against costly repairs in case you’re ever involved in an accident. If you’re renting a car and don’t purchase CDW, the rental company can charge you for any damage to the vehicle.
However, one of the drawbacks is that CDW can be expensive. In some situations, it could also double the total rental cost. If you’re traveling a short distance and are an experienced driver, it may be okay to avoid purchasing CDW. Having said this, this is a decision that you must make on your own. While you may save in the short term, you could end up spending much more if you’re involved in an accident. Before signing a rental car agreement, it’s wise to ensure you’ve read the document from start to finish in order to make an informed decision about whether or not you want coverage for collision damage.
