Are you currently renting a car for Private Hire like Grab? Wondering if you really need to purchase additional car rental protection like Collision Damage Waiver (CDW) to reduce your accident-related costs, or is it just an unnecessary gimmick?
Many private hire drivers can spend up to 12 hours on the road per day. If you are driving for private hire, do take note that you will not be able to use a personal motor insurance. Even for a driver with clean driving records, without Collision Damage Waiver, an accident can set you back by a hefty sum of damages, easily wiping out a full month of income.
The good news is that from just $5.45/day – $6.37/day, the Collision Damage Waiver from GrabRentals allows you to better protect yourself and your income, effectively reducing your accident-related costs by up to 93% (from as low as $203.74).
Does Collision Damage Waiver actually help you to save more money in the long run? How else can you prevent incurring additional costs if you accidentally damage your car during your rental period? Read on as we answer some of the commonly asked questions and share the best tips on how to maximise your income with GrabRentals!
What is “Accident-Related Costs”?
Rental car insurance can be confusing and complicated. Accident-related costs refers to the first amount you will have to fork out when the car is damaged in an accident.
For example, if the damages amount to $7,000, without CDW, the accident-related costs is $6,540. You will need to bear this accident-related costs of $6,540, and the remaining amount can be claimed from the insurer, or in this case, GrabRentals.
Do I need to purchase Collision Damage Waiver (CDW)?
Accidents are costly, even with accident-related costs coverage. To protect our hirer-partners and relieve any anxiety, we’ve introduced Collision Damage Waiver (CDW). Collision Damage Waiver is an added protection scheme provided by GrabRentals.
CDW is available at 3 different packages, CDW Basic ($5.45/day), CDW Standard ($5.96/day) and CDW Premium ($6.37/day), and reduces the accident-related costs that you’ll need to pay in the event of an accident. If you are new to GrabRentals, CDW Standard ($5.96/day) is a popular option.
Section 1 normally covers damage to your own vehicle, while section 2 refers to 3rd party claims payable, in the event you damage someone else’s car. By referring to the table above, you can see that instead of forking out $3,270 in accident-related costs per section, you will only need to pay $305.60 per section, if you opted in for CDW Standard.
Assuming that over the span of the year, you get into a major accident and knock into another car, and you have incurred damages amounting to $7,000 in total for both cars. Since you are at fault, you will need to pay accident-related costs of $3,270 X 2 = $6,540 (section 1 and 2)!
If you were to opt-in for CDW Standard, you will only need to pay accident-related costs of $305.60 X 2, thus saving you by more than $5,000 in accident-related costs.
The monetary benefits of Collision Damage Waiver significantly outweighs the small fee you’ll have to pay on a per-day basis. Not only that, CDW also covers any instances of stolen vehicles. You can think of it as getting extra insurance for your car, to better protect your finances and your hard-earned savings.
What if I accidentally damage my rental car during my contract period?
Apart from CDW, generally speaking, if you rent a car, you are responsible for any car damages (scratches, damaged bumpers, headlights etc) that happen during your contract duration. Vehicle body damages such as scratches and dents can cost a hefty sum to repair, especially when it requires paying it off all at once at the point of return when your contract ends. Body repairs may even cost up to $3,000!
A smarter way to circumvent such high costs would be to opt-in for Vehicle Damage Protection (VDP) scheme by GrabRentals.
Assuming that you are currently renting from GrabRentals on a 6 months contract, without VDP. If you incur the following damages, you will have to pay more than $500 in total for these damages:
- Minor scratch x 4
- Minor dent x 3
- Side panel damage x 1 panel
Scratches or dents are often incurred at the side of the car, which could be caused by other drivers squeezing through a tight parking spot. A minor scratch or dent (larger than a 10 cent coin) can cost you anywhere from $30 – $100 per unit, while major damages that expose the base or metal can cost you more.
With Vehicle Damage Protection, you can rent with a peace of mind and save cost on car damages upon car return.
In a Nutshell…
Collision Damage Waiver (CDW) and Vehicle Damage Protection (VDP) are important schemes that can help you, as a Private Hire driver, defray costs and protect your hard-earned money.
Do visit our website for more information about Collision Damage Waiver (CDW) and Vehicle Damage Protection (VDP).
If you are interested in renting from GrabRentals, you can click here for our available car models and pricing. Take care and drive safely! If you would like to speak to our customer helpdesk, you can also book an appointment at our Grab Drivers Centre or chat with us on our Facebook page.
*All pricing stated are inclusive of prevailing GST.
