Going on a road trip or business trip? Aren't sure how to get to work while your personal vehicle is in the shop for repairs? Car rentals from rental companies offer a world of solutions to Canadians in need of short-term transportation solutions. That said, everything comes with a cost. So, how much can you expect to pay to rent in the short term?
To make sure you get great rates for your short-term rental car, stick around and learn more about the average rental costs below.
How much do car rentals cost in Canada?
The average cost to rent a car from rental car companies like Enterprise Rent a Car, dealership auto leases, or companies you find at airport locations can vary between $20 to $50 a day, if not more, depending on the car rental you want. This averages out to around $140 to $350 a week.
Keep in mind that you can often find great rates for short-term vehicles online, where you can set up your rental and pick it up at your convenience for a seamless process that can benefit you if you are travelling to a different city.
How old do you have to be to rent a car?
To rent a car in most provinces and territories, the legal age is 21. However, if you are renting a car in Quebec or Saskatchewan, the legal age is 18. Keep in mind that should you choose to rent a car in any province or territory across the country and are under the age of 25, rental agencies may charge you more money to use their vehicles, given that you are still considered an inexperienced driver.
Does my car insurance cover the cost of renting a car?
So, does auto insurance cover rental cars? The truth is, it really depends on the current coverage you have for your vehicles! Adding a car rental policy to your insurance is possible. You simply have to ask your provider at the time you purchase your insurance coverage, as it is an optional policy that comes with an additional price tag. If you're wondering, "Does my policy work for a rental car?" We recommend reaching out to your provider, as they can provide you with the specifics of your current policy.
What about if my vehicle is under repair? Will my insurance cover rentals in this scenario?
Whether or not your insurance company will pay for rental cars during repairs depends on the specific coverage you have. Car rental reimbursement coverage is an optional policy that you can add to your insurance for an additional price. In this scenario, if your car breaks down unexpectedly or is undergoing repairs following an accident, your insurance will pay you during your claims process so you can rent it in the short term while your vehicle is fixed.
Where can I purchase a rental vehicle?
Unlike in the olden days, securing a car rental is easier than ever. If you need to rent a car, here are some common places you can do so:
Rental car company
If you're looking to rent a car in the same city you live in, you should be able to find an Enterprise Rent-a-Car or other type of car rental company in your area as there are numerous non-airport locations nearby. We suggest doing a quick search online to find the ones located in your area or the area which you are travelling to.
Airport locations worldwide
In all airport locations worldwide, you'll find some type of car rental business available. If you're going on a trip overseas, you can look at international websites to pre-book your rental car. This seamless process lets you book in advance and pick up your vehicle from the business's airport locations.
Dealership auto leases
Another common place you can rent a car from is dealerships. Keep in mind that dealership auto leases may be more expensive than renting a car from a short-term rental car company. So, if you're looking for a cost-effective alternative, you may want to stick with a car rental business rather than a dealership.
What is the cheapest car rental company?
If you're looking for the most affordable car rental company in your area, the best thing you can do is search online. Lots of websites allow you to compare costs and find the most affordable option near you to make your car rental process as seamless as possible. They will also help you find the right vehicle for your needs without you having to leave the comfort of your own home.
Protect yourself with high-quality auto insurance
Whether you're driving a car rental or your own vehicle, having the right insurance in place is a must if you want to protect your finances and interests. To ensure you are fully protected, make sure you have the following coverages in place:
Third-party liability insurance
Third-party liability insurance is a mandatory insurance policy that all Canadian motorists must follow. This policy protects you in the event you cause bodily injuries or property damage to a third party while operating your vehicle.
Should a third-party claim be filed against you, your liability insurance will cover the cost of legal fees, medical bills, funeral costs, settlement expenses, and other expenses that may arise during this time.
Uninsured motorist coverage
Uninsured motorist coverage is another mandatory policy. This coverage is meant to protect you in the event you are involved in an accident with another driver who does not have insurance coverage in place or doesn't have enough insurance to cover the damages that were caused.
Additionally, uninsured motorist coverage also protects policyholders if they are involved in a collision with another vehicle that flees the scene before they are able to exchange information.
Accident benefits coverage
Accident benefits coverage is mandatory in most provinces and territories but not in all. Essentially, the main goal of accident benefits is to compensate policyholders if they or another person is injured or killed in a car accident, including passengers, other drivers, or pedestrians.
With accident benefits coverage, you will receive assistance from your insurance company for medical expenses, lost wages, funeral costs, rehabilitation, caregiver expenses, and more, depending on the terms and conditions of your individual policy.
Direct compensation - property damage (DCPD)
Another car insurance policy that is mandatory in most provinces and territories is direct compensation - property damage. This insurance policy kicks into gear if you are involved in a collision with another driver who is found at fault. With DCPD coverage, you'll be able to deal with your own insurance provider rather than having to deal with the other driver's company. The goal of this auto insurance is to ensure policyholders are able to receive compensation and car repairs as soon as possible following an accident.
Collision car coverage
Collision car coverage is an optional form of car insurance and deals with the physical damage that is caused to your vehicle following a collision. So, while it will pay for your vehicle to be repaired or replaced if it is a total loss, it will not cover any legal fees or medical expenses. Luckily, however, because accident benefits and third-party are already in your portfolio, you'll be covered for these expenses otherwise.
While collision car insurance is optional, it's still recommended that you purchase this type of coverage, as repairing your vehicle on your own following physical damage can be quite expensive. With this coverage, you'll need to pay a deductible, which is a predetermined amount of money, to your insurance company before your policy kicks in to cover the rest.
Comprehensive car coverage
Comprehensive car coverage, again, is optional--but that doesn't mean it's not a necessary policy that you should consider! Comprehensive insurance covers damages to your vehicle that occur as a result of a non-collision incident. For example, if your vehicle hits an object, has a tree fall on it, is vandalized, has broken glass, or is broken into, you will receive compensation from your insurance company for damages.
Accident forgiveness insurance
Accident forgiveness insurance is a one-time insurance coverage that you have the option of adding to your policy. Normally, following an accident in which you are found at fault, your auto insurance premiums will increase. However, with accident forgiveness coverage, you won't experience an insurance rate increase following your first at-fault accident.
This policy is meant to encourage safe driving and reward those who otherwise maintain a clean driving record. Keep in mind that once you use your accident forgiveness, you won't be able to add it to your car insurance again in the future.
Do I need car insurance for my rental car?
Rental car insurance is not mandatory, unlike other types of coverage. Whether or not you choose to purchase coverage for your car rental from rental agencies is up to you. However, doing so can offer you numerous benefits that are truly invaluable. Mainly, if you choose not to purchase coverage for your rental car and an accident occurs that causes bodily injuries or property damage, you could be held liable for paying repair fees, replacement costs, medical bills, legal expenses, and any other type of settlement costs in the event a lawsuit is filed against you.
When you put that into perspective of how much it would cost to add on insurance to your rental car compared to the hundreds or thousands of dollars it may cost you to pay for any damages out of your own pocket, there really is no debate. Ultimately, driving any type of vehicle comes with risks, regardless of whether you're renting a car or driving your personal vehicle. So, to make sure your weekend adventure or business trip doesn't turn into a financially draining experience, it's best to insure your car rentals for peace of mind and to protect your interests.
What is S.E.F. 27, and what does it mean for my car insurance?
S.E.F. 27 is a vehicle endorsement you can add to your current car insurance policy. Essentially, this endorsement extends the physical damage coverage you currently carry on your personal vehicle to a rental vehicle when you are away on a road trip, weekend adventure, or business trip. Now, in terms of rental cars and S.E.F. 27, if you were to travel to the United States, you can use this feature to insure your rental car, which means you won't need to purchase a separate policy, potentially helping you save money on your overall costs for a car rental.
Contact BrokerLink for car insurance today
Whether you're looking to save on car insurance, have questions about car insurance for international drivers, or have further questions regarding rental companies and rental vehicles, the experienced and friendly insurance brokers from BrokerLink are the solution you've been looking for.
With years of experience in the insurance industry and locations across Canada, BrokerLink is here to meet you where you are. If we happen to be in your neighbourhood, come visit us to work with a broker one-on-one. If you aren't able to make it in, feel free to give us a call to speak with one of our staff over the phone.
Alternatively, if you're in a rush or prefer to stay home, you can get a free, competitive insurance quote using our online quote tool from any device!
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FAQs about weekly car rentals
What are the cheapest rental cars in Canada?
If you're going on a road trip or business trip and want to find great rates for rental vehicles, there really are hundreds of rental agencies across the country. To save money on your rental car, we recommend doing a quick search online. There are many websites on the internet that allow you to quickly compare rental prices for vehicles. Remember that the average price for rented vehicles tends to be around $20 to $200, depending on the company and the type of vehicle you rent. Vehicles like the Toyota Camry, Toyota RAV4, Honda Civic, Ford Fusion, and Kia Rio, among other standard models. Luxury vehicles such as Audi, Lexus or Mercedes may cost more due to higher replacement costs in the event of collision or damages.
Can I rent a car without buying insurance?
Yes, you can rent a car without rental car insurance. Unlike other types of auto insurance, which is legally required for all Canadian motorists who operate a personal vehicle, insurance for rental cars is optional. That said, without this type of coverage in place, you're putting yourself at risk of financial consequences in the event you're involved in a collision with another vehicle, cause third-party injuries, or third-party property damage, which can amount to substantial fees once everything is said and done.
Do I need to report a car accident that happens in a rental vehicle?
If you are unsure about what to do if you're in a car accident while driving a rental car, don't panic. Like any car accident, reporting a car accident to the police is mandatory if you, your passengers, pedestrians, or the other driver have suffered any injuries and if the damage between all involved parties is over a certain amount. Once local authorities have been notified, you'll also need to contact the rental agency with which you have your agreement. They will be able to provide you with more information on what next steps you need to take. For more information about how to handle accidents, take a look at our accident checklist and brush up on safe driving tips to avoid this type of incident.
Can I take a rental car to the US?
If you plan on taking a rental from Canada to the US for a road trip or weekend adventure, it's important that you speak with your rental agency beforehand and receive permission to do so. While more rental car companies allow Canadians to take their rental vehicles across the border, others may not be as open to the idea. We also recommend that you get a copy of the rental agreement to have on you while you are travelling in case you are stopped by law enforcement while you are in the United States. It's also important to mention that if you decide to rent a car and take it across the border or to another province, you may have to pay more to do so.
If you have any questions, contact one of our local branches.
