When it comes to auto insurance, there are many add-ons you can purchase to get even more peace of mind. Today we take a closer look at one of those coverages: collision deductible waiver, or CDW. Keep reading to learn more!
What Is a Collision Deductible Waiver?
The name of this coverage pretty much explains what it does, but let’s take a second to unpack it.
A collision deductible waiver is an add-on to your auto insurance policy that eliminates the requirement that you pay your deductible if you’re hit by an uninsured driver.
The benefit is that in some cases, deductibles can cost thousands of dollars. With a collision deductible waiver, you get to save that money by paying a few extra bucks each month.
California Collision Deductible Waiver
Collision Deductible Waivers work differently in every state, depending on local insurance regulations.
For example, in most states, hit-and-run accidents (that is, accidents where the driver who caused the accident leaves the scene) are not covered by CDWs. However, there’s at least one exception.
Unlike what happens in other states, in California, a CDW applies even in hit-and-run accidents.
In any case, you should keep in mind that for a CDW to apply in California, you still have to be able to identify the car or driver that hit you.
Should You Purchase CDW?
A collision deductible waiver makes sense if you want to increase your peace of mind behind the wheel while limiting the cost of a potential accident caused by an uninsured driver.
Statistics show that this is no small matter: According to a 2021 study by the Insurance Research Council (IRC), about one in eight drivers are uninsured.
You have to keep in mind that there are some scenarios where a CDW won’t apply, for example:
- If you bump into an object such as a guardrail, fence, or highway divider.
- If the accident is your fault.
- When no driver is at fault.
In addition to CDW, there are many other coverages that can help you in the situations described above.
To learn more about collision deductible waivers and other extra coverages for your vehicle, contact RF1 insurance services. Our experts will be happy to help you build a policy that meets your needs.
RF1 Insurance Services: Auto Insurance in Southern California
Looking for a collision deductible waiver in California? At RF1 Insurance, we work with some of the world’s most trusted insurance companies, including Safeco, Guard, Stillwater, National General Premier, Aegis, and the California FAIR Plan.