When it comes to your insurance costs, the deductible probably isn’t the first thing you think of.
Sure, if you have a higher deductible you’ll pay a lower rate, but if you’re in an accident and have to make a claim, the deductible suddenly becomes an extra cost you have to contend with.
Then with smaller repairs, the cost of your deductible might mean it’s cheaper just to pay the bill out of your own pocket, rather than making an insurance claim.
So wouldn’t it be convenient to avoid the costs of your deductible? That’s where the collision deductible waiver comes in.
So what is a collision deductible waiver, and is it a good idea to add it to your policy?
What is a collision deductible waiver?
A collision deductible waiver is an add-on for collision coverage. It means you won’t have to pay your deductible if your car is damaged in an accident with an uninsured driver.
Normally if you have collision coverage, the costs of repairing your car are subject to a deductible. This means that you pay the first portion of the claim up to a certain amount. This is usually somewhere between a few hundred dollars and $1,000.
If you add the collision deductible waiver, your insurance company will waive your deductible. This means the repairs from a collision with an uninsured driver won’t end up costing you.
Collision deductible waiver vs uninsured motorist property damage
While both the collision deductible waiver and uninsured motorist property damage cover similar situation, they aren’t the exactly same.
The collision deductible waiver takes care of the cost of the deductible for drivers who have collision insurance – if an uninsured motorist caused the damage.
Uninsured motorist property damage protects drivers without collision coverage from costs of damage caused by uninsured drivers.
Situations where the collision deductible waiver may not apply
The collision deductible waiver has a pretty limited application. It won’t cover you in the following situations:
No other driver is involved – If you drove into a tree or a pole, the deductible waiver wouldn’t apply. There needs to be another driver involved.
The other driver has insurance – In this situation the other driver’s liability insurance would handle the cost of the repairs.
A hit and run – Even though a hit and run puts you in a similar situation to being hit by an uninsured driver, the collision deductible waiver doesn’t apply.
You were partly at fault in an accident – For the collision deductible waiver to apply, it needs to be clear that the other driver was responsible for causing the accident to the point that you would be considered not-at-fault.
Should I get a collision deductible waiver?
If you have collision coverage, the additional costs for the deductible waiver aren’t huge. It will only add a few more dollars to your premium costs, which is significantly less than your deductible.
Does that mean you need it? That’s up to you. The deductible waiver only applies in certain situations, so you might not end up needing to use it.
There is also the question of whether you need collision coverage in the first place. If your vehicle is older, its value (in the eyes of your insurer) might be relatively low. This would mean the payout you’d get for a claim may not be worth paying the extra premium for collision coverage.
With a liability-only policy you might not want or need coverage for damage you might cause to your vehicle. However, since you can’t fully account for other drivers out there, having protection against an uninsured driver damaging your car is worth considering.
The Cover app is here to help make the decision easier. Simply download the app, answer a few questions and you will get a quote for level of coverage you want at a great price.