Do You Know What is Collision Damage Waiver Car Insurance?
Do You Know What is Collision Damage Waiver Car Insurance?
![Collision Damage Waiver in Car Insurance Collision Damage Waiver in Car Insurance](/images/default-source/car-insurance/collision-damage-waiver-in-car-insurance.jpg)
Owning a car is definitely more convenient and makes daily chores easier, but it also means spending a large sum of money to buy it and also to maintain it. Parking and traffic in the cities add to the stress of owning a vehicle. Things have changed in the present times and it has become easy to rent a car if you do not want to buy and own one. This saves the daily stress of the car and you only have it when you need it. Car insurance is needed for all cars that are driven but what should you do if you rent a car? The answer is to buy a collision damage waiver and you will be protected. It is easy to get confused between the two, so let us discuss in detail and understand the difference and coverage.
What is Collision Damage Waiver?
There are many covers that you can buy when buying car insurance in India. The collision damage waiver is a separate financial product and is a cover that can be bought by an individual when renting a car. The waiver simply implies that in case there is a collision of the rented car and there is damage, a waiver is offered subject to the terms and conditions of the cover. This covers any financial damages in case of an accident of the rented car. This ensures that the person renting the car has no responsibility to pay for the repair cost. This also holds true in the case of theft.
Difference between Car Insurance & Collision Damage Waiver Car Insurance
It is commonly seen that many individuals are confused between regular car insurance and collision waiver damage but they are very different and it will not be wrong to say they are different insurance products. Let us list some of the main differences:
● Third party car insurance is mandatory by law in the country and it is illegal to drive a car or any vehicle without one. Own damage cover is optional but it is always good to get it to avoid financial stress in times of an accident or theft. On the other hand, the collision damage waiver insurance cover is not mandatory but recommended for people who rent a car. It is an option that is there and has to be taken through the rental company and not the insurance company, unlike regular car insurance.
● Car insurance is valid for commercial and private vehicles on the road whereas the collision damage waiver is only applicable for rented cars.
● If you have comprehensive insurance for the car, most parts, internal and external are covered, and add on covers are available for parts not covered in a standard policy. This ensures adequate coverage. On the other hand, the collision damage waiver will only cover the body of the car and no parts like interiors.
Need of a Collision Waiver Damage
Any person who drives a vehicle on Indian roads knows that car insurance is mandatory. Having third party liability insurance is compulsory by the Motor Vehicles Act, 1988 and having your own damage cover is optional. This is the case when you own a car. In the present times, there are many companies offering rental services to people who do not own a car and thus, the question becomes what insurance coverage is available for these cars.
The car owner will have car insurance, but what is the liability of the driver who has rented the car. The answer is to take a collision damage waiver cover which will cover the insured i.e. the person who has rented the car against any liability to pay for the repair of the damage of the car in case of an accident and will be paid by the insurance company. If this cover is not there, the person might be required to pay the cost of repair which is financial stress.
Advantages of Collision Waiver Damage
Buying a collision waiver damage is important if you are renting a car. Before you buy it, knowing the advantages will make the decision easier. Some of the main benefits of this waiver are:
1. Mental peace
This is probably one of the most important reasons and this holds true for most insurance policies as well. When you have the cover you are mentally relaxed that there will be no financial liability in case of theft or damage to the rented car.
2. No financial liability
This is the main reason for buying the insurance cover. When you have the waiver there will be no financial liability in case of an accident or theft. Many people do not buy a car and prefer to rent to avoid the cost of maintenance. But if the rented car gets damaged or stolen, the liability will be the same. Thus, before taking that road trip in a rented car, one must remember to buy the waiver.
Inclusion of Collision Damage Waiver
The following coverage is given in this waiver to the insured:
● Theft of the rented car
● The repair cost of damage like dents and scratches to the car
● Cost of towing to the nearest garage for repairs
Exclusion of Collision Damage Waiver
The following are not included in the collision damage waiver:
● Any damage caused due to not following traffic rules and regulations
● Damage to the parts of the car like gearbox, wheels, windscreen, etc.
● Damage to any third party person and property
Cost of a Collision Damage Waiver
An individual renting the car cannot take the waiver cover directly and in most cases, it has to be through the rental company. This waiver is not mandatory and is an option the individual has. The rates for the same can be different for each insurance company and thus, sometimes taking rates of 2-3 to compare from the rental company might be a good idea. Everybody understands the importance of car insurance but not many people know their liability when they are driving a rented car. Car rentals have become extremely popular in the last few years due to various reasons and thus, for those who prefer to rent a car understanding the importance of a collision damage waiver is important. The waiver cannot be purchased for a private vehicle and is a product specifically designed for rented cars. To ensure you have no liability towards a damage or theft, the waiver is a good choice to drive stress free and enjoy your trip.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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