If you have either recently rented, or enquired about renting a car, you probably heard the term Collision Damage Waiver and were told that it’s additional insurance protection that you need to pay extra to include with your rental. But what does this specifically mean? and what will you need it for? We’ll try to clarify this cover so it’s crystal clear!
What is Collision Damage Waiver?
Collision Damage Waiver is a type of insurance cover, typically offered to you when renting a vehicle. Essentially, when you purchase this cover and an accident happens whilst the car is rented to you, the rental car company providing the vehicle will “waive” their right to make you pay for the repairs themselves, generally leaving you to pay their excess only. If you are not sure what excess means, please visit our previous blog: what is the meaning of an excess.
“But doesn’t my own car insurance cover my rental?”
Whilst an excellent thought, it’s not entirely correct. Whilst your Comprehensive insurance policy covers others vehicles in your custody, care or control, such as a rental car, the cover is limited to Third Party Liability only and won’t, in most cases, cover you the same way a Collision Damage Waiver would as the cover under that option includes damage to the vehicle too.
Of course, if you want to know more about what your insurance policy covers in respect of a rental car; and the different types of covers you can purchase with your rental car like Collision Damage Waiver or Personal Accident Insurance; then read our blog: Are rental cars insured under my car insurance policy?
Our Verdict: is it advisable to buy Collision Damage Waiver insurance?
Well before we offer our thoughts on this, it is important that you weigh up both scenarios and see what you think is the safest option.
When you choose to not purchase the Collision Damage Waiver insurance you stand to save a couple of hundred Dirhams possibly, but leave yourself open to huge repair costs in case the unexpected happens.
On the other hand, if you do opt to purchase a Collision Damage Waiver insurance, you may forgo a couple of hundred Dirhams, but you’ll put your mind at ease for the entire time the rental car is your responsibility, which in our view is priceless It’s probably obvious that we would advise in favor of buying the Collision Damage Waiver when getting a rental car as it’s the option that puts you at least risk and stops you from having to dip into your savings to pay for rental car repairs!
If you want to know more about the different types of insurance cover you can include with your rental car, or even if you are covered for a replacement car with your insurance policy currently, you can reach out to our friendly insurance advisors at InsuranceMarket.ae, and they will go above and beyond to leave no question of yours unanswered. Safe Travels!
