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What is a waiver of deductible insurance?

Last Updated: 05/23/2011 09:13 AM

A waiver of deductible, more commonly called a waiver of collision deductible, is a supplemental coverage that helps you avoid paying for incidents that are not your fault. This type of coverage is used to prevent you from having to pay the deductible costs of repairs on an accident that was caused by someone else who was not insured. Since it would be unfair for you to have to pay for that person's negligence and disrespect for the law, a waiver of deductible eliminates the deductible in such a situation.

The truth is that you are still paying for the accident, through an additional charge on your premiums for the waiver of deductible, but the costs are minimal when compared to having to shell out your hard-won cash in an unexpected accident. The coverage is required by law in some states where it is available, and it should be noted that a waiver of deductible may not be available in all states, due to the fact that insurance companies are regulated on a state-by-state basis.

To illustrate how a waiver of deductible works, consider a situation where an uninsured motorist collides with your car. Even though you have uninsured/underinsured insurance protection, you still have to pay the deductible on your policy before the insurance will cover the remaining amount of the repairs. A waiver of collision deductible eliminates the extra cost, and allows your insurance coverage to pay for the total cost of repairs. If you are found at fault, you will still be responsible for paying any deductibles on the policy, but you will not be held liable for the costs incurred by someone else.

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