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What is a Collision Deductible Waiver?

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A collision deductible waiver pays your deductible if you’re involved in an accident with an uninsured driver and the other driver is at fault. A CDW, which is sometimes referred to as a collision waiver of deductible, can be added to your
collision insurance
policy for a small cost.
Your deductible is the amount of money you are required to pay when you make a claim with your insurance company. Since deductibles can be anywhere from a few hundred to a few thousand dollars, adding a CDW to your policy can help you save money after an accident.
Thinking about shopping for new
car insurance
or adding a CDW to your current policy? The
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What is a collision deductible waiver?

A collision deductible waiver is an add-on for your collision coverage that pays your deductible if your car is damaged in an accident and the other driver is uninsured. While a CDW does come with an additional cost—usually just a few dollars a month—it could be invaluable if you’re ever in an accident with one of the 32 million Americans that drive without insurance
If your car is damaged by an uninsured driver, you’ll have to pay for any repairs, even if the accident was completely their fault. Depending on your collision insurance deductible, you could be out hundreds or even thousands of dollars through no fault of your own.
If you think that sounds unfair, it is! Adding a collision deductible waiver to your policy can protect you from having to pay because someone else was irresponsible.
MORE: What is uninsured motorist bodily injury coverage?

How does a collision deductible waiver work?

Typically, if you get into an accident and have purchased collision or
comprehensive insurance
for your insurance policy, the cost of repairing your car is subject to a deductible. The deductible is the amount paid by the policyholder—you—before your insurance provider will chip in and cover the rest.
Deductibles usually range from $500 to $2,000. While they can save you money on expensive repairs, no one wants to pay money they shouldn’t have to. When you’re in an accident with an uninsured driver and need to get your car repaired, you’ll have to pay that deductible even if the other driver is at fault!
Many insurance providers give you the option of adding a collision deductible waiver to your policy. Since you’re getting more coverage, there’s an extra cost each month for a policy that includes a CDW. But spending a few extra dollars each month over the course of a year adds up to much less than you’d spend by paying a $1,000 deductible after a  wreck with an uninsured driver.
MORE: Collision vs. comprehensive car insurance 
Key Takeaway A collision deductible waiver pays your deductible if you’re in an accident with an uninsured driver.

When a collision deductible waiver might not apply

A collision deductible waiver only applies when you are in an accident with an uninsured driver, and when they are found to be the cause of the accident. Some cases where a CDW might not apply are:
  • The accident was found to be fully or partly your fault
  • The accident was found to be no one’s fault (the crash was the cause of black ice, low visibility, swerving to avoid an object in the road, etc.)
  • The accident only involved your car
  • The accident was a hit and run (although a hit and run leaves you in a mess similar to being hit by an uninsured driver, CDWs do not cover these scenarios)
It’s important to remember that you must have collision coverage if you want to add a collision deductible waiver to your insurance. If you don’t have collision coverage, you can’t add a CDW to your policy.

How is a CDW different from uninsured/underinsured motorist coverage?

While both a collision deductible waiver and
uninsured/underinsured motorist coverage
protect you in situations where your vehicle is damaged by an uninsured driver, they aren’t exactly the same.
Uninsured/underinsured motorist coverage protects drivers without collision coverage, by covering damages to your vehicle and injuries you sustain in an accident with an uninsured driver. Most importantly, you will still need to pay a deductible with this type of coverage.
A collision deductible waiver, on the other hand, is extra protection for drivers who have collision coverage. It waives—or removes—the need for you to pay your deductible out-of-pocket if you get into an accident with an uninsured driver.

Should I add a collision deductible waiver to my policy?

A collision deductible waiver only applies to a single scenario—getting into an accident with an uninsured driver when the accident is their fault. Because of its limited application, you may find yourself wondering if it’s worth the cost.
If you already have collision coverage, then the answer is yes! Adding a collision deductible waiver to your policy usually only costs a few extra dollars per month—a price that is well worth the peace of mind you’ll have and the money you’ll save if you’re ever in an accident involving an uninsured driver.
It can be especially valuable if you live in a state with a high number of uninsured drivers, or if you’re the type of person that worries about unexpected financial costs. The bottom line: if you can afford a few extra dollars a month, adding a CDW to your collision coverage now can save you from a lot of headaches later.
Key Takeaway For just a few dollars a month, a collision deductible can save you hundreds—or even thousands—of dollars. 

How to save on car insurance with a CDW

If you’re thinking about buying collision insurance or adding a CDW to your existing policy, the
Jerry
app is the easiest and most effective way to find
car insurance
that’s customized for you.
After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They can even help cancel your old policy! So why do all that extra work when Jerry can do it better?
“Using
Jerry
is a super straightforward process, and at each step, you can see exactly what coverage you’re paying for. Thanks to Jerry, I’m paying $900 less each year while keeping full coverage for my new car!” —Martin H. 
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