Collision Deductible Waiver coverage? Should I buy it

Should I buy the Collision Deductible Waiver (CDW) that car rental companies offer?

Many of our clients ask us this when renting cars in the United States. It is an important question and the long-story short is…it varies from person to person.

YET, there are two situations where it makes GOOD sense to buy the coverage.

1) Protecting your record and your auto insurance rates. One disadvantage of relying on your personal auto-insurance policy to pay for damage to a rental car is that if you file a claim for which you are responsible, your rates will usually increase from 20 to 25 percent for three years. This is NOT so if you purchase coverage from the car rental agency. If you have one or two points already on your record than why risk getting another point? It will only cause you to have higher premiums and less market availability for your auto insurance. Protect yourself and protect your record from further damage and put the claim on the car-rental agency.

2) When renting the car for business use. When you are renting for business purposes and your employer reimburses your expenses why not get the CDW? Makes sense! Because you’re using the rental care for your employers benefit, it seems reasonable that your  employer should pay for the insurance and any claim costs.

For more helpful tips, visit www.tedmusinsurance.com or call us at 1 (800) 903 5752.