In our previous post, we took a detailed look at the Collision Deductible Waiver (CDW). But what is the difference between CDW and Uninsured Motorist Property Damage, or UMPD? Keep reading to find out.
What Is Collision Deductible Waiver (CDW)?
As the name suggests, the Collision Deductible Waiver is a coverage that removes the requirement that you pay your deductible if you’re hit by an uninsured driver.
This type of waiver gives you extra peace of mind when you drive and helps you save thousands of dollars if you have an accident, all for just a few extra bucks each month.
It’s important to keep in mind that a CDW applies only when you are able to identify the driver or the car that hit you.
To learn more about the Collision Deductible Waiver, check out our previous post, “What Is a Collision Deductible Waiver?”
What Is Uninsured Motorist Property Damage (UMPD)
Uninsured Motorist Property Damage, or UMPD, is a coverage that pays up to $3,500 for the damages caused to your car in an accident with an uninsured driver who is at fault.
As with CDW, some conditions must be met for the UMPD coverage to kick in:
- The other driver must be at fault.
- The other driver must be responsible for the damage.
- Direct physical contact must occur between your vehicle and the uninsured vehicle.
- You must be able to identify the other driver (by providing either the driver’s license number or the car’s license plate).
- You must report the accident to your insurance company within the required timeframe (usually within 10 days of the accident).
The Difference Between CDW and UMPD
Some people find it difficult to see the difference between Collision Deductible Waiver and Uninsured Property Damage. However, the distinction is very clear if you understand the purpose of each coverage.
- The Collision Deductible Waiver (CDW) pays the collision deductible when you have collision coverage and are in an accident with an uninsured driver (provided that all the requirements are met).
- The Uninsured Motorist Property Damage (UMPD) coverage helps cover the damage to your insured vehicle when you’re hit by an uninsured driver and don’t have collision coverage (and all the requirements are met).
In other words, you should consider CDW when you have collision coverage. If you don’t have collision coverage (which is optional in California), then you should consider purchasing UMPD to protect your vehicle.
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