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What is a Waiver of Collision Deductible and How Does It Work?
Definition & Meaning
A waiver of collision deductible is an optional insurance coverage that can be purchased when renting a vehicle. This coverage helps pay for your collision deductible if your rental car is damaged by an uninsured driver or in a hit-and-run incident where the other party is at fault. It is important to note that this coverage only applies when there is actual physical contact with the other vehicle, and you must be able to identify the uninsured driver or vehicle involved.
Table of content
Legal Use & context
This term is commonly used in the context of rental agreements and auto insurance policies. It is relevant in civil law, particularly in cases involving vehicle accidents. Users may encounter this term when reviewing rental contracts or insurance documents. With the right tools, such as templates from US Legal Forms, individuals can manage rental agreements and insurance claims related to this coverage effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: If you rent a car and get into an accident with an uninsured driver, the waiver of collision deductible can cover your deductible amount, provided you can identify the other driver.
(hypothetical example) Example 2: A person rents a vehicle and, while parked, is hit by a hit-and-run driver. If they have the waiver, it can help cover the deductible when filing a claim.
State-by-state differences
Examples of state differences (not exhaustive):
State
Collision Deductible Waiver Availability
California
Available as an optional add-on when renting a vehicle.
Texas
Commonly offered, but terms may vary by rental company.
New York
Typically included in standard rental agreements.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Collision Damage Waiver (CDW)
Insurance that covers damage to a rental vehicle.
CDW typically covers all damage, while waiver of collision deductible specifically covers the deductible amount.
Liability Insurance
Covers damages to others in an accident you cause.
Liability insurance does not cover your own vehicle's damages.
Common misunderstandings
What to do if this term applies to you
If you are renting a vehicle, consider whether a waiver of collision deductible is right for you. Review your existing auto insurance policy to see if it already covers such situations. If you decide to purchase the waiver, ensure you understand the terms and conditions. For assistance with rental agreements or claims, explore US Legal Forms' ready-to-use legal templates.
In complex situations, seeking professional legal help may be necessary.
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