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You have already booked your rental car in advance and are prepared to pick it up. What about insurance?
Are you covered if there is an accident? Do you have rental protection in your auto policy, or do you need to purchase it from the rental company? Is this a mandatory requirement? You want affordable car insurance when renting a car that gives you the protection you need. In this blog post, we'll provide you with some clarity about your options.
Insurance for rental cars refers to one of two things:
Rental car insurance will cover damages to another person's property or vehicle or injuries to passengers, the other driver, and yourself. Whether you can get their coverage directly or customize your needs by working with a broker.
These policies are available to protect the vehicle, your personal belongings, and third-party liability. Here is a look at the four different types available:
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In Canada, buying insurance from a rental car company may be best if your policy has low liability limits, you want additional peace of mind, or you don’t have an active policy.
If you rent a car, it is highly recommended that you get coverage to protect the vehicle and yourself. Without it, you would have to pay for any damage out of pocket. If you don't have a vehicle, you can get coverage from the rental or credit card companies.
Unlike personal car insurance, rental car insurance is not legally required in Canada. While it's not mandatory, it's generally recommended for the protection it offers while driving a rental car.
You may be in luck – some credit cards offer coverage for rental vehicles.
Remember to check if your credit card offers car rental insurance coverage when renting a car. To qualify for the coverage, pay for the entire rental with your credit card and decline extra coverage from the rental company. Credit card rental coverage usually covers theft, loss, and damage to your rental car in the case of an accidental collision.
However, it may not cover the cost of injuries to yourself or other drivers or the cost of your stolen personal items from the rental car. Always check the fine print of your credit card's insurance agreement to confirm coverage.
It's best to stick with your current insurance provider for rental car coverage, as they can tailor the insurance to your needs. If your auto policy doesn't have OPCF 27, consider adding it for driving in Canada or the USA. The cost of adding this coverage to your policy is usually reasonable. If you're the insured person on the auto policy, ensure the rental car agreement is in your name. Review your insurance policy or contact us for confirmation.
The first step to finding out if you have coverage for a rental car is to check with your insurer. They can tell you how much of your rented vehicle will be covered, if any.
Here are the most common places to get it:
If you want to lower the cost of the vehicle you are renting, shop and compare prices online. You can also leverage loyalty programs and coupons or choose an economy car. Booking your vehicle pick-up outside the airport is often a more cost-effective option.
If you're looking for ways to save on your rental protection, here are some tips to help you save:
Rental car companies charge an average of $65 daily for rental car coverage, but the exact amount depends on how much protection you add and where you obtain it. For example, some insurance waivers from rental car companies can cost $7 to $40 in addition to renting the vehicle.
You need some form of coverage when you rent a car. Without it, you would have to pay out of pocket for any damages. Even a minor accident could cause thousands of dollars in damage.
It depends on your policy. Some insurers have a set amount they allot for a rental. For example, you may have limits at $2000. If you make a car insurance claim and require a rental, your insurer will usually notify you of limits.
It is a good idea to purchase collision from the rental company if you don’t have a personal policy.
Yes. Rental cars automatically come with basic protection. However, the basic amount is minimal. You would have to pay out of pocket for any damage above these limits.
If the renter needs to add an additional driver, the renter and new driver must both present themselves at a rental location with their valid driver's license and credit card.
Before you decline the car company's offer, ensure you have protection included in your car insurance quotes. Regardless of the type of vehicle you are driving, it's important to have proper protection for a vehicle you own or rent.
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| Categories | Auto |
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| Tags | Auto Coverage |
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