An Overview Of Collision Deductible Waivers
Auto insurance companies offer various riders or add-ons to enhance basic or standard coverage. You get each rider at an additional cost to your insurance. A collision deductible waiver is one of these riders. Below is an overview of the collision deductible waiver.
What It Is and Why You Need It
Your collision coverage compensates for damage arising from a collision with an uninsured driver. Like other forms of coverage, you have to pay a portion of the damages as a deductible. The deductible ranges from a few hundred to a few thousand dollars. A collision deductible waiver relieves you of the duty of paying the collision deductible waiver.
Consider a case where an uninsured motorist crashes into your car and causes damages worth $5,000. You will get a $4,000 check from your insurance company if you have a $1,000 deductible and don't have a collision deductible waiver. You get the full compensation of $5,000 with the waiver in place.
Difference With Underinsured/Uninsured Motorist Coverage
Collision deductible waiver differs from uninsured or underinsured motorist (UM/UIM) coverage. UM/UIM compensates you for damages from collisions with uninsured motorists or underinsured motorists whose policy limits cannot cover your damages. A collision deductible waiver takes care of the deductible you would pay after a collision with an uninsured driver.
The Typical Terms and Conditions
The collision deductible waiver has a few terms and conditions you should know. For example:
- The waiver usually applies if the uninsured driver is fully responsible for your damages (if you are not responsible for the accident).
- The waiver only applies if you can identify the other driver and confirm their uninsured status. Thus, the waiver does not apply to hit-and-run cases.
Your insurance documents will specify the terms and conditions of the waiver, which vary by policy.
Who Needs It
A collision deductible waiver is useful if you don't have savings you can use in an emergency, such as a car accident. The waiver is useful even if you have emergency cash savings since it saves you from paying the deductible. Moreover, the add-on is relatively inexpensive, especially for those who choose low deductibles.
Evaluate your insurance needs to identify the riders you need to enhance your coverage. An auto insurance agent can help you with the evaluation. After that, purchase the relevant coverage or add-ons for a full auto insurance experience and peace of mind. Don't forget to ask your agent for help in securing discounts to lower your overall insurance costs.
Talk to an agent to learn more about auto insurance.
Share
