It’s a common occurrence among travelers: standing at the counter of a rental agency and not knowing whether or not you should take out the insurance offered to you.
You should know that the counter agent earns a commission based on a number of factors:
Quite often, moreover, the rental company will play on your ignorance, the laws of the land and the natural fears that people have when they’re far from home.
As for the insurance provided by your credit card, remember that you always get what you pay for:
Car rental theft and damage insurance offered by credit cards applies only to the vehicle rented by the credit card holder, and covers him/her against theft or damage to that vehicle only.
To benefit from this coverage, the credit card holder must REFUSE the theft and damage insurance offered by the rental company. This insurance is generally known as Collision Damage Waiver (CDW) and can cost up to $40 per day.
Any damage to other vehicles, goods or people is covered by third-party liability insurance. 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), make sure you use the credit card of the person who will be registered on the rental contract. For example, don’t use Mrs.’s credit card if it’s Mr. who is registered on the rental contract.
To be covered by your credit card’s theft and damage insurance, it is mandatory to have:
As a general rule, pay the car rental in full with your credit card OR use the credit card affiliated with the loyalty program from which you are using the points.
An AIR MILES credit card when using AIR MILES miles or a Aeroplan credit card when using 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 $85,000, 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 is your responsibility to check your personal insurance coverage OR to accept the rental company’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 resolve the situation.
Get into the habit of taking a few photos BEFORE taking possession of the vehicle: any damage to the bodywork and a photo of the rental contract (if you only have a paper version)!
If the vehicle is stolen with the contract in the glove compartment, you’ll have a version on your phone!
Not all credit cards are created equal when it comes to rental car theft and damage insurance.
As a general rule, credit cards offering theft and damage insurance for rental cars will differ in 4 aspects:
Here are 5 credit cards we recommend for car rental theft or damage insurance, based on different income levels. Please note that it is your responsibility to read your credit card’s certificate of insurance carefully, as these conditions may change at any time:
The National Bank World Elite Mastercard offers a wide range of attractive travel and purchase insurances, which we have detailed here.
In terms of rental car theft and damage insurance, this card includes personal belongings and covers rentals lasting up to 48 consecutive days:
The Scotiabank Visa Infinite Passport was the first card from a major Canadian bank, Scotiabank, to charge no 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 entitles you to Scene+ points.
The BMO Ascend World Elite Mastercard offers excellent car rental theft and damage insurance coverage for rentals of up to 48 consecutive days :
The American Express Cobalt® Card is one of Canada’s preferred credit cards.
In addition to its exceptional accumulation of points, it also has very good insurance, notably for theft and damage to rental cars, covering up to $85,000 (compared with $65,000 for most credit cards) and for a period of 48 consecutive days!
What’s more, unlike the 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 Gold is one of the only credit cards in Canada to offer car rental theft and damage insurance, with no annual fee, year after year. It is a Scene+ credit card.
A card that saves you the 2.5% foreign currency conversion fee when you travel.
By choosing the right credit card, you could avoid paying tens of dollars in unnecessary rental car theft or damage insurance! As you’ve seen, there’s no shortage of choices!
In any case, remember to consult the insurance booklet supplied with your credit card BEFORE renting a car. If you have any questions, don’t hesitate to call your financial institution and get something in writing to validate your understanding.
Savings are here:
