One of the first coverage related questions I ever fielded when I got into the insurance education part of my career almost 30 years ago was whether agents should advise customers to buy the collision damage waiver (CDW) or loss damage waiver (LDW) when renting a car. The short answer is: YES!
Rather than expend electrons here on this issue, I’m simply going to refer you to two definitive articles on the subject. The first one was originally written not long ago for the CPCU Journal:
The second one was written many years ago and, with editing over the years, is still current:
This article includes a download that can be given to customers explaining in more nontechnical terms why it’s a good idea to buy the damage waiver.
UPDATE: To read a more detailed article about this, including whether coverage might apply under a personal umbrella policy (and, if so, what problems that might entail), CLICK HERE.