What is a collision deductible waiver?

A collision deductible waiver, also known as a collision damage waiver (CDW), is an optional insurance coverage that can be added to a car insurance policy. This waiver typically waives the policyholder's responsibility for paying the deductible in the event of a collision claim.

With a collision deductible waiver, the insurance company agrees to cover the full cost of repairs or replacement of the vehicle after a collision, without the policyholder having to pay their deductible. This can be beneficial for individuals who want extra protection and peace of mind in case of an accident.

It's important to note that a collision deductible waiver may come with certain limitations and exclusions, so it's essential to carefully review the terms and conditions of the coverage before adding it to your policy. Additionally, adding a collision deductible waiver to your policy may result in higher insurance premiums, as you are increasing the level of coverage provided by the insurance company.