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Collision Damage Waivers When Renting a Vehicle: To Buy or Not To Buy?

In the rental agreement that you sign, you agree to be responsible for all the damage to the vehicle while it is in your care. This not only includes accidents—even when the other driver is at fault—but also includes all other damage, including theft, hail damage, storm damage, broken windshields, etc. So, what's a vehicle renter to do to cover this exposure?