Sometimes, accidents that occur are not our fault. When accidents happen, we get covered by our collision coverage to make the payments for repairs to the vehicle. Most times, it can be inconvenient to pay for the collision deductible waiver out of pocket.
Getting a collision deductible waiver coverage added to your car insurance makes situations like this better to handle. This waiver covers the payment for your deductible if ever you get involved in an accident. Unfortunately, this coverage is different in every state.
The (CDW) is a coverage that is added to your car insurance policy. It does not stand alone; instead, it is an add-on to your insurance policy. This coverage is backing that handles your collision deductibles if ever you get involved in an accident with an uninsured motorist.
The collision deductible waiver is unfortunately not accessible in every state and insurance company. Aside from these states, insurers can decide if they will render this coverage or not.
How Does it Work?
How a collision deductible works and when it is applied to a collision car insurance coverage depends on the insurance company. As mentioned earlier, this coverage is an add-on to your car insurance coverage. If ever you get into a collision with an uninsured driver, you will not be required to make an out-of-pocket payment for deductibles.
Getting a CDW can lessen your collision deductible cost. However, collision deductible waivers are only added to the collision part of your car insurance coverage. These parts of your collision coverage and your CDW are added to damages to your vehicle anticipated to occur from a collision with another vehicle, mailbox, or telephone.
When will a Collision Deductible Waiver not Apply?
Just as peace of mind is offered by the collision deductible waiver. It is advisable not to get too comfortable with it. This is because they only apply to accidents that occur with an at-fault uninsured driver. If this is not the case or the reason for needing a CDW, you will not be covered by this car insurance add-on. Below are some other instances that are not covered.
If only one car is involved:
In cases where you crash into a fence or bang into a highway divider, you will not be covered under the collision deductible waiver. You will need to make the deductible payments out of pocket.
When the accident is no one’s fault:
In an instance when an accident occurs due to heavy rainfall causing a collision between you and the other driver, none of you will be considered at fault. This is because both drivers couldn’t have been able to avoid the accident. In this case, you will not be covered by a collision deductible waiver.
If you are partially at fault:
Guess you failed to obey the traffic instructions or you made a turn without being conscious, causing another driver to have a collision with you; in this case, you are partially at fault. In such cases, you will not be covered by CDW.
A hit-and-run accident:
A hit-and-run situation can be very annoying and most times be a terrible experience. Unfortunately, this is also not covered under the collision deductible waiver coverage. Most drivers strive to declare a one-man accident as a hit-and-run just to shake off the payments for a deductible. To prevent this, insurance companies waive deductibles only when the at-fault driver is present.
Should I buy a Collision Deductible Waiver?
A collision deductible waiver applies to a limited number of circumstances. This makes it quite difficult to identify when you will need to get a CDW added to your car insurance coverage. For someone who wants to have peace of mind, getting a CDW will be a good option.
When the other driver is at fault after the occurrence of an accident, you will only spend a few dollars on repairs for damages. But in a case where an accident occurs with an uninsured driver, you will have to cover up the damages with your insurance coverage. Having a collision deductible waiver will be effective to cover up your deductible.
Does a Collision Deductible Waiver Cover Scratches?
After the occurrence of an accident, every damaged part of a car is covered under the collision deductible waiver. This, however, means that a certain amount of money is paid for the repairs of scratches or any other damages caused to your vehicle.
