Do you need a rental car? The following are some of the reasons why you should think about obtaining these waivers: When you rent a car, it is not always easy to determine whether or not you need insurance on the vehicle. When you reserve a car online, you might see that there is an additional cost for insurance or something called a CDW or LDW. This amount is completely optional. "Crash damage waiver" is what "CDW" stands for in full. This is not, strictly speaking, insurance coverage. This constitutes a release from all duty. LDW stands for "loss damage waiver," which is another phrase that can be used interchangeably with CDW. Even though neither collision coverage nor liability coverage will fully protect you from the effects of a serious car accident, they can help in other ways that are very important.
Key Takeaways
Read the contract carefully to find out the specifics, as automobile rental firms often use the terms "collision damage waiver" (CDW) and "loss damage waiver" (LDW) interchangeably. In the event of an accident, CLWs and LDWs do not pay for damage sustained by other cars. If you get into an accident while driving a rental car, a waiver might keep your regular car insurance from being canceled because of the accident.What are the ins and outs of the CDW and LDW Waivers?
If you acquire a waiver, you will not be responsible for any loss or damage to a rental automobile, and your liability will be reduced if any loss or damage does occur. In the event that you are involved in an accident while driving it, regardless of who was at fault, it can be of great assistance to you. Although it may appear to be common sense, there is actually quite a bit of legalese in either a CDW or an LDW. The actual extent of coverage, in addition to any applicable exclusions, may vary from company to company. It can also be changed by the actions you take as a tenant. It is essential that you are familiar with the terms and conditions of your car rental agreement. If you have paid the additional fee for a damage waiver, be sure to pay close attention to the instructions. In the event that you breach the terms of the rental agreement in any manner, the paid waiver will be null and void. Only coverage for the rental vehicle is provided. When you have collision damage waiver (CDW) coverage on a rental car, there is no deductible to pay. However, the coverage is only applicable to that particular vehicle. In the event that you are involved in an accident and cause damage to property or other cars, the collision damage waiver will not apply. That damage must be covered by either your personal insurance policy or by any extra insurance that you acquire. Either way, it is your responsibility to make sure that it is. The state or states in which you rent the car may also impose further restrictions on you. "Responsibility for loss or damage to the car from vandalism unrelated to theft will not exceed $500.00 in California and $2,500.00 in Nevada," says Hertz's rental policy, but only for people with LDWs. In California, this limit is $500.00, while in Nevada, it is $2,500.00. Regardless of whether or not the tenant purchases the LDW, the renter is not accountable for theft unless it is the renter's fault that the theft occurred.What is the price tag on that?
The cost of a collision damage waiver (CDW) or a loss damage waiver (LDW) varies not just according to region but also by rental business and the kind of vehicle that is being rented. In New York, the daily rate for automobiles that cost less than $30,000 may be as low as $9 in some cases. However, the price of an LDW in California can go as high as $500 for some businesses and for vehicles with a greater level of luxury.Should I Purchase a Waiver Instead?
If the deductible on your personal insurance policy is relatively large, considering purchasing either a CDW or LDW may be more cost-effective than purchasing any other form of coverage. Even if you have coverage from another source, it is highly likely that you will still be liable for paying the rental fee for the days that the rental automobile is being repaired. These expenses might soon add up to a significant amount. To add salt to injury, you are now responsible for paying to repair a car that you will never again be able to use to your advantage. You, on the other hand, are protected by a waiver. Your individual vehicle insurance premiums could go up or down as a result of an accident. On the other hand, having a waiver ensures that the rental business will handle all of the necessary paperwork. It's possible that your premiums won't go up. A driver who is on vacation might hit a railing, causing a significant dent in the door of the passenger side of the rented vehicle they are driving. If the driver acquired a collision damage waiver, then they would not have to be concerned about meeting their deductible or paying for repairs out of their own pocket. It will pay for the repairs in their entirety without any further costs. It's possible that their individual policy will still cover them even if they don't have a CDW, but their deductible will still apply. That means taking money out of your own pocket. During the period that the vehicle is getting repaired, the rental firm can still collect rental fees from the customer. When it comes to making a selection, compare all of these different aspects. If you have decent insurance with a low deductible and spend a lot of time in rental cars, it is possible that paying for CDWs will not be worth the money you spend. If you pay $20 per day for collision damage waiver coverage and the deductible on your personal auto insurance policy is $250, it will only take you roughly two weeks of driving a rental car before you have spent as much on the CDW as you would have on your deductible.Bottom Line
When renting a car, it is in your best interest to spring for the loss damage waiver as well as the collision damage waiver. However, they do not come without a price. When you hire a car, you should do the math to determine whether or not the additional protection is worth the cost.