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- A collision deductible waiver (CDW) removes your collision deductible when an uninsured driver causes an accident.
- The waiver typically applies only if the other driver is proven at fault.
- CDW usually requires collision coverage on your policy.
- The add-on typically costs a few dollars per month, depending on the insurer.
- It is different from uninsured motorist coverage, which may pay medical bills or other losses.
What is a collision deductible waiver?
A collision deductible waiver is an optional auto insurance endorsement that waives the deductible on your collision coverage if an uninsured driver causes the crash.
Normally, collision coverage pays to repair your vehicle after an accident, but you must first pay your deductible — often $500 to $1,000 — before insurance pays the remaining costs.
If you carry a collision deductible waiver and the claim qualifies, your insurer covers the full repair cost without requiring you to pay the deductible.
How a collision deductible waiver works
A CDW only activates under specific conditions. In most cases, all of the following must apply:
- You have collision coverage on your policy
- Another driver caused the accident
- The at-fault driver is uninsured
- Fault can be clearly determined
When these conditions are met, your insurer processes the claim using collision coverage, but waives the deductible payment.
Below are a few scenarios with and without a collision deductible waiver.
| Scenario | Without CDW | With CDW |
|---|---|---|
| Repair cost | $3,000 | $3,000 |
| Deductible | $500 | $0 |
| Insurance payout | $2,500 | $3,000 |
Collision deductible waiver vs. uninsured motorist coverage
These two coverages are often confused, but they serve different purposes.
| Coverage Type | What It Pays For |
|---|---|
| Collision deductible waiver | Waives your collision deductible |
| Uninsured motorist bodily injury | Medical expenses and lost wages |
| Uninsured motorist property damage | Damage to your vehicle |
Uninsured motorist coverage protects you from injuries or property damage caused by uninsured drivers, while a CDW simply removes the deductible from a collision claim.
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When a collision deductible waiver applies
A collision deductible waiver typically applies when:
- An uninsured driver hits your vehicle
- The other driver is clearly at fault
- You carry collision coverage
- Your insurer offers the waiver in your state
For example, some states — like California — specifically allow a collision deductible waiver for accidents involving negligent uninsured motorists.
When a collision deductible waiver does not apply
A CDW will not cover every accident. It usually does not apply in these situations:
- You caused the accident
- Fault is shared between drivers
- The crash involves only your vehicle
- The other driver has insurance
- The uninsured driver cannot be identified
Because of these restrictions, the waiver is most useful in specific uninsured-driver scenarios.
How much a collision deductible waiver costs
The cost of adding a collision deductible waiver is usually modest. Typical estimates:
- $1 to $12 per month, depending on the insurer
- Often cheaper than lowering your collision deductible
- Available as an optional endorsement with full coverage policies
The exact price varies by state, insurer and vehicle risk factors.
Is a collision deductible waiver worth it?
A CDW can be valuable if you:
- Live in an area with many uninsured drivers
- Carry a high collision deductible
- Want to avoid large out-of-pocket repair costs
- Drive frequently in heavy traffic areas
However, if uninsured drivers are rare in your area or you already carry a low deductible, the benefit may be limited.
Frequently Asked Question: Collision deductible waivers
What is a collision deductible waiver?
A collision deductible waiver is an optional car insurance endorsement that removes your collision deductible when an uninsured driver causes the accident.
Do you need collision coverage to get a deductible waiver?
Yes. A collision deductible waiver only applies to collision claims, so you must carry collision coverage on your policy.
Is a collision deductible waiver the same as uninsured motorist coverage?
No. Uninsured motorist coverage may pay medical bills and property damage, while a collision deductible waiver only removes the deductible for vehicle repairs.
Does a collision deductible waiver cover hit-and-run accidents?
Usually not. Most insurers require the at-fault driver to be identified and confirmed as uninsured.
How much does a collision deductible waiver cost?
Costs typically range from about $1 to $12 per month, depending on the insurer and state.
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