If you are traveling for business or pleasure and are not driving your own car, you will probably need to use a ridesharing app., take a taxi/cab, or rent a car and drive yourself. If you will only need transportation to and from the airport and a few short rides during your stay, you may decide the convenience and cost-effectiveness of ridesharing apps. are the best option. But if you plan to travel longer distances from your original destination, it may be more convenient and cost-effective to rent a car.

If you rent a car, you will be required to sign a rental agreement—which is a legal contract that includes some important terms and decisions for you to make related to your use of the car and your responsibility for any damage to it. One of the most important decisions is whether to purchase the insurance offered by the car rental agency, or to rely on coverage from the insurance policy you may have on your own car.

The insurance offered by the car rental agency is usually called collision damage waiver (CDW) or loss damage waiver (LDW)—and it is not really insurance—it is the car rental agency’s waiver of any claims against you if the car is damaged. This will generally mean the car rental agency is not able to seek recovery of damages from you (or your personal auto insurer) if the rental car is damaged. But as with all forms of insurance or waiver of rights, this waiver of your responsibility is subject to the language of the CDW/LDW insurance policy and the specific circumstances of any accident or damage.

In New Mexico, when you rent a car, you are entering into a legal contract through the rental agreement. This agreement outlines your obligations and the terms of use for the vehicle. A critical decision you'll face is whether to opt for the rental agency's collision damage waiver (CDW) or loss damage waiver (LDW). These waivers are not traditional insurance policies; instead, they represent the rental company's decision to not hold you responsible for damages to the vehicle under certain conditions. If you accept the CDW or LDW, the rental company typically cannot pursue you or your personal auto insurance for costs associated with damage to the rental car, subject to the terms of the waiver and the specifics of any incident. It's important to review the language of the CDW/LDW carefully and consider how it aligns with any existing coverage you may have, such as your personal auto insurance, to make an informed decision on whether to purchase the waiver.