When deciding if you should purchase a collision damage waiver (CDW), research and consider the following:

• If there is damage to the rental, the rental company usually requires payment upon the return of the car. If your insurance policy does not pay on the day of the loss it’s possible that your credit card would be charged.
• Your insurer may want a claims representative to view the damage before the claim is paid. The rental car company is likely to have the car repaired as soon as possible, which may not allow enough time for your insurer to review the damage.
• The rental car company may hold you responsible for their loss of use of the vehicle, for the money they would have earned on renting the vehicle if it had not been damaged and needed time for repairs.
• Also, consider the length of time you are renting and the location and ensure that it is within your policy territory.

Another note: Many credit card companies offer rental car insurance as part of their incentive package to use their card for the rental. Check with your credit card company for specifics and limitations in the coverage.

In all cases, the best course of action is to discuss your options with your insurance agent. Your agent is the best source for coverage information and can advise you on if you need to purchase a CDW from the rental car company.