When you rent an automobile in Canada, your current vehicle’s coverage will likely not extend to the car rental. Due to this reason, it is extremely important to make sure that you get the right car insurance for your car insurance rental. You might have some coverage for a rental vehicle with your current insurance policy, but it is always best to call your insurance provider to see. It is unlikely that you have things like comprehensive insurance and collision insurance for the rental vehicle. Usually, you will only be covered for liability on the rental vehicle if your insurance company covers you for it at all. It is best to call your insurance company whenever you are renting a vehicle. This way you can make sure that you have sufficient coverage.

What Is a Collision Damage Waiver?

collision

A collision damage waiver is something that your rental car provider will likely try to sell you. However, this is not a replacement for regular collision coverage. The collision damage waiver is designed to protect you in the event that damage occurs to your vehicle. However, it doesn’t always protect you under every circumstance. For example, one company might decide that the collision damage waiver does not protect clients who are at fault for an accident occurring. Due to this reason, you are likely going to want to call your insurance company and add your own collision coverage to the rental vehicle.

Does Rental Insurance Coverage Have a Deductible?

When you buy insurance from a rental company, you likely are not going to have to pay an insurance deductible if you get into an accident. However, some rental companies might have a small deductible that you have to pay if get into an accident. This is why it is so important to make sure that you read over the rental insurance coverage policy carefully before signing onto the contract. It is important to realize that crashing a rental car has the same consequences as crashing your own car. When crashes occur that cause over $2000 and damage, the crash will be reported to the police. Your insurance premium can be impacted and it will reflect on your driver’s record as well.

Does My Credit Card Provide Coverage for Rental Vehicles?

This really depends on who you have a credit card with. Some credit card companies do provide insurance plans for their clients for rental vehicles. It is not very often that people have to rent vehicles, which is why rental insurance isn’t a huge risk for insurance companies. However, before assuming that your credit card does provide coverage, you should definitely get in contact with them to make sure. There could definitely be restrictions on the coverage that is provided by your credit card company. It is definitely important to be aware of these restrictions before driving a rental vehicle as breaking them could have some pretty major consequences.

Do Credit Card Companies Cover Auto Insurance for Business Trips?

business trips

Unfortunately, credit card companies do not cover auto insurance for business trips. Usually, you will have to contact your business insurance company to get coverage. People rent vehicles for personal use much less often than businesses have to rent vehicles. Just providing insurance for personal matters helps keep the risk down for insurance companies. Even a business credit card is unlikely to cover auto insurance for business trips for a rental vehicle. It is always best to contact your insurance provider to make sure you have insurance whenever you are going on a business trip. Additionally, you can also pay for the coverage offered by the rental company.

How Much Does Rental Car Coverage Cost?

Usually, getting insurance on a rental vehicle is going to cost you more than renting the vehicle itself. The important thing to make sure of is that you have some kind of coverage for the rental vehicle. It does not matter if you get the coverage from the rental company or from your own insurance provider. Usually, rental cars are relatively new vehicles so it is definitely a good idea to get some insurance coverage. You can expect to pay up to $30 per day for collision coverage, up to $10 per day for medical coverage and up to $10 per day for a decent amount of liability coverage. The largest cost of renting is almost always the insurance coverage. However, that cost could be tremendously more if you were to get into an accident while driving the vehicle.

How Can I Get Coverage for a Rental Vehicle When Travelling?

rental vehicle

It can be a little bit more difficult to get insurance for a rental vehicle when you’re traveling. Usually, you can purchase travel insurance from your insurance company. Additionally, your credit card company might have traveling coverage built into it. However, it is extremely important to call up your insurance company in order to make sure. Sometimes, there are time limits on these types of insurance policies. You will want to make sure that you have coverage for the entire length of your trip.  One final way that you can get coverage for a rental vehicle when traveling is through a work or personal health insurance plan. Sometimes these come with a traveling component or sometimes you can add this to the coverage. When in doubt, make sure that you call up your insurance company to make sure that you’re properly covered.

To Conclude

Renting a vehicle isn’t always straightforward. There are usually a variety of conditions that you have to meet in order to be able to rent a vehicle. It might seem that you have full coverage for the vehicle if you pay for the premium rental package. However, it is important to realize that there are often clauses in these packages that the company can use to avoid paying for damages done to the vehicle if you get into an accident. When you are renting a vehicle, it is extremely important to read over these clauses, especially if you aren’t going to contact your insurance company to get your own coverage. You definitely need to make sure you know what you are getting into when you rent a vehicle.

Resources:

http://www.fsco.gov.on.ca/en/auto/brochures/pages/brochure_renting.aspx
https://beta.theglobeandmail.com/globe-drive/culture/commuting/do-you-need-to-buy-rental-car-insurance/article21366347/
https://www.caasco.com/Insurance/Auto-Insurance/Insuring-a-Rental-Vehicle.aspx