What is a Collision Damage Waiver and Why is Your Wallet Crying?

** What is a Collision Damage Waiver and Why is Your Wallet Crying?

Rental cars trigger extra fees. Suddenly, that small damage fee feels huge. ** What is a Collision Damage Waiver and Why is Your Wallet Crying? is a rental add-on that attempts to shield you from costly repair charges after an accident. Also labeled Loss Damage Waiver or CDW coverage.

This option is not traditional insurance. Studies indicate companies profit heavily by marketing uncertainty. Essentially, you pay daily to transfer some risk to the rental provider. Generally, it only applies when you break the rental agreement terms.

Travelers often confuse this with personal auto coverage. Research shows personal auto policies might already cover rental incidents. Always review your existing limits before paying extra at the counter.

A quick check can save significant cash. H3: Q Do I really need CDW if I have auto insurance? A Check your policy first; many extend coverage to rentals. H3: Q Can the rental company still bill me even with CDW? A Yes, if damage results from reckless or illegal actions.