The situation is common among travellers: being at the counter of a rental agency and not knowing whether or not you should take out the insurance offered to you.
Be aware that the counter agent receives a commission based on several factors:
Very often, the renter will play on your lack of knowledge and the natural fears people have when they are away from home.
As for the insurance provided by your credit card, remember that you always get value for the money you put into your card’s fee.
Rental Car Theft and Damage Insurance offered by credit cards apply only to the vehicle rented by the credit card holder and covers the credit card holder against theft or damage to that vehicle only.
To benefit from this coverage, the credit card holder will have to DENY theft and damage insurance offered by the renter. This insurance is commonly known as Collision Damage Waiver (CDW) and can cost up to $40 per day!
We will talk about liability insurance for all damages to other vehicles, property or persons. This liability insurance is never included with credit cards.
The theft and damage insurance for rental cars offered by credit cards protects:
If you are a couple and each have a credit card linked to the same account (main card and additional card), be sure to use the credit card of the person who will be registered on the rental agreement. For example, do not use Mrs.’s credit card if Mr. is the one on the rental agreement.
To be covered by your credit card’s theft and damage insurance, it is mandatory to have:
As a general rule, pay in full for the car rental with your credit card OR use the credit card affiliated with the loyalty program from which you use the points.
This means using an AIR MILES credit card when you use AIR MILES or an Aeroplan credit card when you use Aeroplan Miles!
The theft and damage insurance for rental cars offered by credit cards covers:
All this will be within a limit corresponding to the price of the vehicle sold new (between $65,000 and $80,000, depending on the credit card).
Theft and damage insurance for rental cars offered by credit cards WILL NOT COVER:
While most of these non-covered situations are normal, make note of the lack of liability insurance. It will be your responsibility to check your coverage with your personal insurance OR to accept the renter’s liability insurance.
Also, as a general rule, certain types of rental cars are excluded:
As a general rule, only cars, minivans and SUVs are covered by credit card rental car theft and damage insurance.
Finally, some credit cards do not cover specific countries or even certain regions of a country.
In order to know if the country in which the rented vehicle will travel is covered, it is up to you to:
Before leaving on a trip and renting a car, consult your credit card’s insurance booklet to find out about your coverage!
You had an accident? Your rental car was stolen?
You will need to contact your credit card insurance company as soon as possible to make a claim. Make sure you have all supporting documents on hand:
Afterwards, your credit card insurance will take over from the car rental agency to settle the situation.
Get into the habit of taking a few pictures BEFORE you take possession of the vehicle: possible damages on the bodywork and a photo of the rental agreement (if you only have a paper version)!
If the vehicle is stolen with the agreement in the glove box, you will have a version of it your phone!
Not all credit cards are the same for theft and damage insurance for rental cars.
As a general rule, credit cards offering theft and damage insurance for rental cars will differ in 4 aspects:
Here are 5 credit cards that we recommend for car rental theft or damage insurance, according to different income levels:
The National Bank’s World Elite Mastercard® offers many exciting travel and purchase insurance coverages, which we have detailed here.
In terms of rental car theft and damage insurance, this card includes personal effects and covers rentals that can last up to 48 consecutive days:
The Scotiabank Passport™ Visa Infinite* Card was the first card from a major Canadian bank, Scotiabank, to not charge conversion fees for foreign currency transactions. So you can charge your car rental to this card and save 2.5% in fees charged by most credit cards!
What’s more, it offers 6 VIP airport lounges and allows you to earn Scene+ points.
The BMO Ascend World Elite Mastercard offers excellent car rental theft and damage insurance coverage – including personal effects – for rental periods of up to 48 consecutive days and is the only card to offer coverage in the event of death or dismemberment:
The American Express Cobalt® Card is one of Canada’s preferred credit cards.
In addition to its exceptional earning of points, it also has excellent insurance, notably for theft and damage to rental cars, covering up to $85,000 (compared with $65,000 for most credit cards) and for 48 consecutive days!
What’s more, unlike other cards, the American Express Cobalt® Card requires no minimum income. This is an American Express Membership Rewards credit card.
The Scotiabank American Express® Card is one of the only credit cards in Canada to offer car rental theft and damage insurance, with no annual fee, year after year. This is a Scene+ credit card.
It’s an excellent card for those who are new to travel hacking and want to benefit from this type of insurance without paying an annual fee!
By choosing the right credit card, you could avoid unnecessarily paying dozens of dollars in car rental theft or damage insurance! As you’ve seen, there’s no shortage of choices!
Remember to check the insurance booklet provided with your credit card BEFORE renting a car!
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