During your vacation, you’ll often need to rent a car to get around, to visit unusual places or simply to do your shopping. But what about rental car insurance? Rental agencies offer their own insurance, such as third-party liability, collision and theft coverage. However, before taking out such insurance, check whether you’re already covered by your current car insurance, travel insurance and credit card insurance.
Canada’s auto insurance laws differ by province and territory. So it’s essential to familiarize yourself with the rules in force in your area.
Rental car insurance enables you to obtain insurance coverage for the car you rent, for example, during a trip. Several forms of insurance are generally available, starting with third-party liability. Then you have the option of adding supplementary insurance, such as collision, theft, personal accident and personal effects insurance. In the event of an accident, call the car rental company to find out how to proceed.
Here are the rental car insurance options available to you in Canada.
Tip: Before taking out rental car insurance, check whether you are already covered by your current car insurance, travel insurance or credit card insurance. However, be sure to read the contracts of your insurance policies to confirm whether you have the required insurance coverage.
For a car rental in Canada, you may be covered under your current auto insurance policy. Alternatively, you could call your insurer to add additional rental car insurance to your policy. In short, before taking out insurance with a car rental company, contact your insurer.
If need be, you could take the opportunity to store around for car insurance, either with an insurance broker like YouSet or with the help of a car insurance comparator.
If you have purchased travel insurance, through a platform such as soNomad or an insurance company, it is possible that your insurance policy includes rental car insurance. If in doubt, check your insurance contract or contact your supplier.
Many travel credit cards offer rental car insurance. Most of the time, you have to pay the full rental amount with your card to obtain the insurance.
However, be sure to check the coverage offered, the amount covered and the coverage period. Also, note that credit card rental car insurance does not cover third-party liability, so you’ll need to take out liability insurance with the car rental company.
Finally, if your car, travel and credit card insurance don’t provide coverage, you’ll need to take out rental car insurance. Car rental companies in Canada offer their own insurance, ranging from third-party liability coverage to the supplementary insurances explained shortly.
In Canada, car rental companies offer their own insurance, generally grouped into 4 types of coverage. Take the time to understand them to make sure you have adequate protection for your next car rental.
Third-party liability coverage is a minimum requirement for driving a car in Canada. It covers damage caused to other people or their property while you’re driving. Insurance companies often include this coverage in the rental price of a vehicle. However, check the deductibles, as they can be quite high.
Collision Damage Waiver and Loss Damage Waiver cover the rental car itself in the event of damage. Such damage includes theft, an accident with another vehicle or fire.
Personal accident insurance covers medical expenses for injuries caused to you or passengers in the rental car, in the event of an accident.
Personal effects insurance covers your personal belongings in the rental vehicle in the event of theft or loss. Insurance companies often include this coverage in the rental price of a vehicle.
Here are the 5 best credit cards for car rental insurance. These cards stand out in 4 respects: the coverage offered, the amount covered, the coverage period (up to 48 days) and the rental conditions.
It is your responsibility to read your credit card insurance certificate carefully, as coverage and conditions may change.
In short, rental car companies in Canada offer their own rental car insurance: third-party liability and supplementary insurance. However, there are other options, such as your current car insurance, travel insurance and credit card insurance. In short, before taking out additional insurance, check whether you’re already covered.
Rental car insurance enables you to obtain insurance coverage for the car you rent, for example, during a trip. You can choose the level of insurance to suit your needs: third-party liability, collision and damage, etc.
The price of rental car insurance varies according to the car rental agency, the category of vehicle rented (e.g. car vs. van) and the insurance cover chosen.
In the event of an accident, call the car rental company and your insurance company (current car insurance, travel insurance or credit card insurance, if applicable). The car rental company and your insurer will explain how to proceed.
A car insurance deductible is the amount you have to pay in the event of a claim before your insurer will cover the difference. This varies according to the car rental agency and the type of car insurance you have chosen.
When you rent a car in Canada, you may be covered by your existing auto, travel or credit card insurance. Alternatively, you can take out rental car insurance with the rental company.
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