FAQ

Do you need collision damage insurance when renting a car

When you rent a car, you’ll be asked if you want to purchase optional coverage called Collision Damage Waiver (CDW). this insurance covers damage to the rental car. It can be an expensive proposition, but it may be worth buying, depending on your own auto insurance and credit card coverage.

a cdw covers rental car repair bills if there is an accident or if the car is stolen. is a good option if you don’t have:

Reading: Do you need collision damage insurance when renting a car

  • your own car insurance
  • a credit card with rental car coverage that you use to pay the rental
  • a third-party rental car insurance policy
  • It may also be worth considering a cdw if:

    • You just want to make sure you are not responsible for any additional charges due to vehicle damage.
    • You don’t want the hassle of identifying coverage gaps in your auto insurance and credit card coverage.
    • You have auto insurance but don’t want to risk your insurance rates going up if there’s an accident with your rental car.
    • You don’t want to pay for any damage out of pocket and then have to wait for a credit card company or auto insurance company to reimburse you.
    • If you decline a cdw, the rental car company may charge you more than the car repairs. They also usually charge for:

      • loss of use. this is rental money lost while the car is being repaired.
      • towing. If you are unable to drive the car after the accident, you may be charged for the towing.
      • diminished value. this is the decrease in the value of the car even after the repairs have been made.
      • administrative fees. additional costs associated with the claims process.
      • While your own insurance or credit card coverage may pay for some of these costs, expenses can vary by company. and, in some cases, you must have the cooperation of the car rental company.

        how does a cdw work and how much does it cost?

        See also: What are the benefits of long term care insurance

        Rental companies often offer a cdw when you make an online reservation for a rental car and again when you pick up the vehicle. When you buy a CDW, the car rental company waives the right to charge you for damage to the rental car. but there are usually some exceptions, for example, for damaged tires and side mirrors, or for “gross negligence,” which means you were speeding, running, or driving while intoxicated. the names used for cdws vary. so study the details carefully before signing.

        the cost of a cdw is usually around $30 per day. That means you can increase your rental cost by around $200 a week. Car rental companies can make a profit from selling CDWs, so it’s common for staff to be pushy when introducing them to customers.

        weighting options for a collision damage waiver

        You have other options besides buying a cdw from a car rental company. here are possible alternatives to buying cdw coverage.

        credit card

        Many credit cards provide rental car insurance as a benefit, as long as you use the card to pay your rental. While you won’t pay more for the benefit, it’s important to be aware of the limitations that may come with your card’s auto rental coverage. Here are some key considerations:

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