CDW Insurance Car Rental
Whether or not you need damage waiver coverage depends on the needs of your rental car, location and method of payment.
What Is Crash Damage Coverage Scope?
When rental car rental service representatives ask you to purchase a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), they ask you to pay a certain amount per day as compensation for a lower deductible payment if the rental car is damaged or stolen.
The amount you pay depends on the location and type of rental car. Getting (and paying for) CDW coverage can add 25% or more to the total value of your rental. In some countries, such as Ireland, you may need to purchase CDW coverage or provide proof of alternative, equivalent coverage to rent a car.
Buying CDW coverage can save you money if your rental car breaks down. If you don’t buy Collision Damage Waiver Coverage and something happens to your rental car, you can’t afford to pay the rental car company a lot of money. The deductible on your rental car can be very high – in some cases, well into the thousands of dollars – and you can even pay the rental car company for the loss of use of the car while it is being repaired.
On the other hand, CDW coverage can be very expensive. In some cases, it can almost double the cost of renting a car. If you’re only driving your rental car a short distance, buying CDW coverage may not be worthwhile – unless, of course, you get into an accident.
Bottom line: You will need to read your entire rental car contract and carefully weigh the pros and cons of paying for Collision Coverage Waiver when you choose your rental car.
Alternatives to Purchasing Disaster Crash Coverage
Credit Card Companies
Your credit card company can offer CDW coverage, if you pay for your rental with that credit card and decline the CDW coverage offered to you by the rental car company.
If you choose this option, be sure to read your credit card company’s terms and conditions before renting a car. Some credit card companies offer coverage only within the United States, while others do not exclude specific countries. Almost all credit card companies do not exclude car rentals in Ireland, although American Express added Ireland to the list of countries covered in July 2017.
CDW Insurance Car Rental Insurance
Read your auto insurance policy or call your insurance company to find out if your vehicle includes coverage for damage to a rental car. Some U.S. states, such as Maryland, require car insurers to provide this coverage. If your policy covers car damage, you do not have to pay your car rental company for CDW coverage when you rent a car. Be sure to check out the exceptions, such as rental cars outside the United States and rental cars in Ireland.
Travel Insurance Providers
You can purchase waiver coverage injury coverage from a travel insurance provider when you insure your trip . Some travel insurance providers offer Vehicle Coverage , which you can purchase if you want to decline the CDW coverage offered by your rental car company. This type of coverage only applies to specific situations, including vehicle theft, riot, civil unrest, natural disaster, collision and vehicle accident.
Certain situations, including driving while intoxicated, are specifically excluded from the Vehicle Coverage. Most travel insurance providers will not sell Vehicle Coverage for certain types of rental vehicles, such as motorcycles, vans and merchants. If your rental car company is asked to have coverage for other situations, such as a broken or cracked glass window (common in Ireland), you cannot change the Vehicle Coverage for CDW.
Generally you cannot purchase Self Vehicle Coverage. Vehicle Coverage is often combined with other types of travel insurance. You can request a quote for a travel insurance policy directly from an underwriter, such as Travel Guard, Travelex, HTH Worldwide or MH Ross Travel Insurance Services, or from an online insurance aggregator such as SquareMouth. com, TravelInsurance.com or InsureMyTrip.com.
Make sure the full travel insurance policy and the accompanying list of exclusions are ready before you buy.