Understanding The Benefits Of A Collision Damage Waiver
If you have rented a car within the past 5 years, then I am sure you have been given the offer to obtain a collision damage waiver, sometime colloquially known as ‘walk away’ insurance. The reason they call it ‘walk away’ insurance is because if you have an accident, the insurance kicks in and you simply walk away from the accident with no liabilities or obligations to pay anything out of pocket. Of course, it isn’t quite that simple but you get the idea. Obtaining a collision damage waiver nearly guarantees that you will be able to sleep soundly and have peace of mind, but it isn’t always necessary or practical. For example, some auto insurance carriers automatically cover you (the driver) with your auto policy regardless of which vehicle you operate. To learn more about which companies offer this sort of coverage, click here to visit Michigan Car Insurance - a Michigan based shopping comparison site for automobile insurance that services the entire United States population.
Another reason you may elect not to obtain a collision damage waiver is because of cost. Often times, your base rental cost increases by 20%/day for each day you have the waiver on your contract. This is impractical for some people who don’t wish to pay that much and are comfortable taking the risks implied by driving without coverage.
So, let’s talk about what a collision damage waiver does and how it protects you. It’s original intention is simply to act as collision insurance, but nowadays it’s coverage has expanded (for most providers). These days you are covered in the event the rental is damaged by accident, stolen, vandalized, or becomes a victim of the elements. If you don’t waive these damages, you are usually stuck with a bill that includes: administrative fees, charges associated with loss of revenue from not being able to rent the vehicle to other patrons, and of course the cost of the vehicle itself. Bear in mind that there are varying levels of coverage for this waiver, and more protection usually costs more.
So, now that you understand the benefits of how a collision damage waiver can protect you I highly suggest you consider it next time you rent a vehicle. It makes sense as you normally rent a vehicle when you’re traveling in unfamiliar areas that may pose a higher level of risk for an incident to occur. Even if you are only driving around your own town and city, the car itself may be unfamiliar to you which may also pose a risk. Click here to visit Michigan car insurance to check if your current provider already provides this type of coverage. Happy renting, and be safe out there!
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