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Car Insurance for Rental Cars in Canada & Ontario

On occasion, a driver may need to rent a vehicle. When this is the case they need to be informed about the vehicle insurance they will need.

Do I Need Insurance For Rental Car?

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Yes.

It is the law in Canada that every driver must have vehicle insurance. Therefore if you are going to be driving the rental vehicle you will need proof of insurance. There are different ways that you can obtain this

Does Car Insurance Pay For Rental Car?

Yes. In most cases.

When trying to determine if you need to buy insurance for a rental car you need to make an informed decision. Proper research should be done before you actually sign up for the rental. This means reviewing your current vehicle insurance policy. There may be a section within this that explains that you do have insurance coverage if you are going to rent a vehicle. Also, what the details pertaining to the coverage is.

Your personal insurance coverage:

You should be able to determine what types of coverage you have on your policy such as:

  • Liability
  • Comprehensive
  • Collision

These coverages in most cases will be extended to a rental. The amount of coverage will be the same as will the applicable deductions.

If your insurance policy confirms you are covered for a rental and you feel there is enough coverage then you will not need to buy extra vehicle insurance.

Which Insurance Is Best For Rental Car?

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The ones that offer the best discounts.

When you go to rent a car you will most likely be asked about your need for insurance. If you have not checked your personal vehicle insurance policy you may not know the answer to this. If you have and you are not covered under your own insurance you still have some options.

Your Insurance Provider

You can contact your insurance company to see if they can provide temporary insurance for the rental coverage. Many of the insurance providers offer this service. It may be cheaper than obtaining the insurance through the car rental company

Via Your Credit Card

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In most cases, you will be required to pay for your car rental with your credit card. There are a lot of credit cards that have the extra service of providing vehicle insurance for car rentals. In order to capitalize on this, you would need to pay for the rental with that specific card. You could call the credit card company to confirm that you do have insurance coverage and what it would cover.

Other Types of Insurance

A lot of people have a variety of different types of insurance. Many of these have included additional insurance coverages that could include car rental insurance. You may want to check:

  • Your homeowner’s insurance
  • Travel Insurance
  • Health insurance

You may be surprised to learn that you do have some limited coverage for car rental insurance under these policies.

How Much Is Car Insurance For a Rental Car?

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Up To $50. Per day

The cost of rental car insurance is going to differ depending on where it is obtained.

From Your Insurance Company

If this insurance is included in your regular vehicle policy then you should not have to pay any extra.

If it’s not included and you want to obtain this from your policy provider the cost will be determined by several factors. Such as the duration of the coverage and the amount and type of coverage required.

If you are going to purchase this through the rental company then the cost is going to vary depending on what you are opting in to.

Loss Damage: Remember that it is mandatory to have insurance coverage when driving in Canada. The insurance company may offer your loss damage waiver. This can cost anywhere between $10 to $30. Per day. If you add on additional liability that will be another charge. Then added insurance like personal accident coverage and personal items coverage is going to increase the price even more.

What Are You Paying For?

Understanding the different levels of insurance being offered by the rental company is important. If you do have coverage under your own policy you need to determine if you feel confident in the amount of coverage you have. You need to know what it is going to cover.

For example, would it cover the costs if the rental vehicle were stolen or vandalized? Or if it was involved in a collision. If so, then for how much? If you don’t have this coverage then you can obtain LDW through the rental company.

Is your personal insurance going to cover liability costs? This is coverage for damage done to other vehicles or property. Does it include medical costs that could be incurred by others? If not then what is the rental car company offering for this and for what amount of coverage?

Medical costs could be covered under personal accident insurance. Is this something that is included in your personal policy? If not what is the rental company offering?

The same applies to Personal effects coverage.

When comparing the coverage being offered by the rental company it is important to compare it to the other potential coverages that you may have such as through the various other types of insurance mentioned above.

Planning For Your Coverage

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Making a snap decision at the time you are renting is not a wise thing to do. All too often this is what happens. Then a mishap occurs and the driver involved is at a loss as to what coverage he has and by who. It is better to be well informed about your personal insurance as well as the other types of insurances that you may have. This is going to help save you money when it comes to rental insurance. It will also help to make sure that you are well protected instead of just assuming your insurance has got you covered.

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