Numbers of people without coverage is pretty high especially in some states that increases the chances of being involved in an accident with one of them. That is why companies and policyholders are looking for solutions against losing out in such incidents because the liable party cannot pay.
Uninsured Motorists Collision Deductible Waiver does exactly what it say in the can and your carrier waives the deductible in a Collision claim you have to make because an uninsured driver crashed onto your car and he or she is at fault.
When they don’t have any provision you have no option but use own coverage. This may be extra useful if you have a pretty high deductible like $1,000. Often good drivers choose this option because they don’t anticipate making a claim and in the meantime don’t want to pay too much premium.
CDW is only applicable if you have a policy with Collision component and work in association with it. People with older vehicles may choose to buy Liability only, as they don’t feel it is worth protecting it. In such cases, you may want to consider Uninsured Motorists Coverage to deal with similar claims involving third parties with no protection at all. It offers injury and property damage compensation just like Liability but for you.
You accept that you are going to pay out of pocket in case you crash it but you shouldn’t suffer when someone else causes the incident. If they have a liability policy it would pay your losses. If not, you can use own UMC to get compensated.
Usually, additional premium for CDW is not much but its scope and limit is pretty tight as well that there is a chance you would never need it. According to a study you may need to spend between $1 to $20 depending on several factors that you might as well just have it, especially now you know what it does.
Remember that it doesn’t help in any other case but when hit by an uninsured motorist. Of course you need to have Collision coverage to be able to include the deductible waiver as well. And it has no use in single vehicle incidents and when you are at fault.
Furthermore, it may not be available in certain jurisdictions and a few companies may not offer it. Yet again, some states have a partial fault laws in which you may not be able to claim against others if you are even partially responsible and cannot use this waiver.