Whether you're taking a rental from Canada to the US or renting a car for a week while yours is in the shop, you may have some questions regarding whether or not your personal car insurance policy will cover your rental car during this time.
To ensure you're informed about rental vehicles and whether your current car insurance covers this type of benefit, stick around for more information!
Coverage for rental cars in Canada by my insurance
Whether or not your personal auto insurance covers a car rental or not really depends on the specifics of your policy. Most personal vehicle insurance coverage will not include rental car insurance in standardized plans. Typically, rental car insurance is an additional coverage option that you will need to request from your insurance provider at the time.
We should mention, however, that you may have rental car insurance through your credit card company as a benefit for having a line of credit with them. However, not every credit card company offers this, and it may only be available for certain cars. So, we recommend that you reach out to your provider and ask about your personal car insurance policy and whether it covers car rentals. Alternatively, you can speak with your credit card company and inquire about whether your credit card comes with this benefit.
Will insurance pay for rental cars in Ontario?
So, let's say you're involved in a collision, and your vehicle needs to undergo repairs. Would your car insurance pay for a rental car during repairs? Again, it depends. If you have rental car insurance, also known as rental car reimbursement, this additional coverage can help pay for your rental car during the time when your vehicle is being repaired. Keep in mind, however, that you will need to file an insurance claim for damages under your collision and comprehensive coverage and have it approved by your adjuster before you are able to go to a car rental company and rent your replacement car.
Does my auto insurance cover rental vehicles in Europe?
Unfortunately, adding rental car insurance options to your standard car insurance policy will not be transferable if you travel to Europe. Therefore, you will need to purchase insurance directly from the rental car companies offered overseas.
What happens if I get into an auto accident in a rental car?
Should you get into an accident while driving a rental car, it's important to remember that traffic laws still apply, meaning reporting a car accident is still required. Once you've made sure everyone is okay and exchanged information with the other drivers involved, you'll need to call the rental car company and inform them of what happened.
Your specific car rental company will walk you through the steps of what you need to do next. Afterward, you'll need to inform your insurance provider. To prevent accidents in the future, brush up on safe driving tips from our guide!
Protect your interests with high-quality car insurance
To ensure you are comprehensively protected while on the road, regardless of whether you're driving your own car or a rental car, having the right car insurance policy in place is a must. Here are some of the types of auto insurance you need:
Third-party liability insurance
Third-party liability insurance is mandatory for all drivers in Canada. However, when you buy liability coverage, you'll choose your coverage limits. Note that all provinces and territories have a minimum limit that all drivers must purchase.
With third-party liability coverage, you'll have protection in the event you are involved in an accident that causes bodily injuries or property damage to other individuals. Should a claim be filed against you for damages, any medical bills, legal fees, repairs, replacements, and other costs will be compensated by your provider up to your coverage limits.
Uninsured motorists coverage
Uninsured motorist coverage is another type of personal accident insurance that all drivers must carry. This policy will protect you in the event you are involved in a collision with a driver who is uninsured or does not have enough personal car insurance of their own to properly compensate you for medical bills and other damages.
This insurance also offers protection to policyholders if they are involved in a hit-and-run, where the other motorist flees the scene before information can be exchanged.
Accident benefits coverage
Accident benefits coverage is mandatory in most provinces and territories in Canada. It is a type of personal accident insurance that protects you and your passengers if you suffer injuries or death from an accident, regardless of who is found at fault for the collision.
This essential coverage ensures that those involved are able to receive proper medical care and will cover the cost of medical expenses, rehabilitation, funeral funds, caregiver costs, and more, depending on the specifics of your insurance.
Direct compensation - property damage (DCPD)
Direct compensation - property damage is only necessary in some provinces and territories but is still highly beneficial. With direct compensation - property damage, if you are involved in an accident with a driver who is found at fault for what occurred, you'll be able to deal directly with your insurance provider rather than the other drivers.
Ultimately, this insurance is here to ensure you can get compensated for your claim as quickly as possible without having to deal with a middleman.
Optional car insurance
Beyond mandatory car insurance in Canada, there are optional policies you can add to your personal insurance for further protection. Types of optional auto insurance you need:
Collision car coverage
Collision car coverage will help you pay for the cost of repairs or replacement of your vehicle if it is damaged in an accident. With this insurance, you'll need to pay a deductible before your coverage kicks into place.
Comprehensive car coverage
Comprehensive insurance is another type of optional insurance that you should highly consider. With comprehensive car coverage, you'll have protection from your insurance company if your vehicle is damaged as a result of a non-collision event. For example, if your car is broken into, stolen, vandalized, or damaged by a falling tree due to a storm, you'll be able to file a claim with your provider and receive compensation for the damages.
Accident forgiveness
Accident forgiveness coverage is a one-time insurance policy that you can add to your insurance plan. With accident forgiveness, you can avoid an insurance rate increase following your first at-fault accident. This coverage is meant to encourage safe driving and reward those who maintain a claims-free driving history.
Rental car insurance coverage
Lastly, if you want coverage for a car rental, adding this policy to your insurance is recommended! With rental car insurance, you'll be covered if you need to use a rental vehicle during the time your vehicle is being repaired and if you're renting from rental car agencies while travelling!
Get personal auto insurance coverage with BrokerLink today!
Whether you have questions about your personal car insurance policy or need more information about car rentals, homeowners insurance, or other types of coverage, the experienced brokers from BrokerLink are here to help. We can also help you save on car insurance!
BrokerLink has offices across Canada! So, if we're in your neighbourhood, come on by to work with one of our friendly brokers in person. If you can't make it to one of our locations, don't worry. You can also reach us over the phone during business hours.
Alternatively, you can get a competitive insurance quote from some of the best car insurance companies in Canada right from your phone by using our online quote tool.
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FAQs about rental car insurance coverage
How much does rental car coverage cost?
Like all types of auto insurance, the cost of car rental insurance coverage will vary depending on your unique circumstances and the insurance company you choose to purchase coverage from. If you are looking for rental insurance, we recommend getting a quote from different insurance companies to compare costs and coverage options so you can find comprehensive coverage that's affordable and meets your needs.
How do I know if my car insurance policy works for rental cars?
If you're thinking, how do I know if my policy works for a rental car? The best thing you can do is look at your individual insurance policy and review the terms and conditions of your coverage. If you are unable to find this information, give your insurance company a call, and an agent or broker should be able to clarify your coverage. One thing to note is that rental car insurance is a type of extra coverage you can buy for your personal vehicle at the time you renew your policies. Therefore, if you did not request this secondary coverage at the time of your renewal, it's likely you do not have rental car insurance.
How can I save on car insurance?
To save on car insurance, there are a couple of things you can do as a motorist at the time of your renewal. First, we suggest shopping around and comparing quotes from different providers. It also doesn't hurt to ask your insurance agent or broker if you qualify for any discounts. Common discounts include installing security features on your vehicle, remaining claims-free, having snow tires, and more. Additionally, if you can afford to do so, consider paying for your auto insurance upfront rather than monthly. Companies often add an administration fee to those who pay monthly to cover the cost of processing each payment. Lastly, take a look at your current car insurance policy and evaluate the types of coverage you have. From there, you can determine whether you want to make changes to your limits, deductibles, and other aspects, which could potentially help you save money on your premium.
If I'm an international driver, will my personal auto insurance policy cover my rental car?
Car insurance for international drivers can be tricky. If you are in Canada and staying short term, you may have coverage under your insurance policy from your home country. We recommend speaking with your insurance provider before entering the country for more information. In the event your primary coverage from your home country does not cover rental cars, you will be able to purchase insurance at any car rental counter. Just make sure you read the terms and conditions before signing off to ensure you have adequate coverage.
Is reporting an accident in Canada mandatory?
Whether or not reporting a car accident in Canada is mandatory depends on the province and territory in which the accident occurs. Most provinces have certain conditions that need to be met, which will determine whether contacting law enforcement is necessary or not. Conditions often include the extent of property damage that has occurred, whether any injuries have taken place, if a crime has occurred, and more. Regardless, no matter how serious an accident is, you should always contact your insurance provider. Further, if you are unsure of what to do if you’re in a car accident, keep an accident checklist in the glove box of your vehicle at all times for assistance.
What is S.E.F. 27?
S.E.F. 27 is a special form of endorsement that policyholders can add to their personal car insurance. When it comes to car rentals and SEF 27, the endorsement extends the physical damage coverage from your own personal car insurance coverage onto a rental car if you were to go away. For example, if you took a trip down to the United States, you would be able to use this to insure your rental car, helping you save money on having to buy rental car insurance while you're down there. It is important to understand that S.E.F. 27 is applicable to vehicles of similar make and quality to your own. In the event you rent a luxury vehicle, you may be required to purchase additional insurance.
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