Rental Cars- Should the CDW be Purchased?

With many souls heading for warmer climates to escape this unrelenting winter we are having, the subject of whether or not to purchase the Collision (or Loss) Damage Waiver (CDW) for rental cars is once again debated. Please consider the following. It is true that the Personal Auto Policy (PAP) does in fact offer some physical damage coverage, but only according to specific terms and conditions. Your own policy may not be compatible with the requirements of the rental company’s contract and since they hold your credit card information, their motivation is to expedite payment of the claim and charge your card; not wait for your own insurance company to respond. Further, responsibility for the rental company’s Loss of Use most likely will not be handled fully by the PAP. And it’s not only the actual damage to the car. Administrative losses can also create a problem and they can involve towing, appraisal, claim adjustment, storage, and on and on.

Although most CDW/LDW fees are considered excessive, our advice is to purchase the coverage for short-term rentals. In conclusion, the rental contract will make you responsible for all damage and loss of rental income to the vehicle. By electing the CDW, one potential problem area that could have put a damper on your winter getaway has been eliminated.