What is car rental insurance and how does my insurance cover it?

Planning your next trip or vacation and perhaps considering renting a car to explore new places, whether in Canada or elsewhere? However, with so many rental car insurance options available, understanding how they work can be confusing. In this article, we'll answer all your questions to help you travel with peace of mind.

What is car rental insurance?

How to choose your car insurance?

Personal car insurance policy

If you already own a car insurance in QuebecYou are most likely already covered for vehicle rental. To find out, check if your personal auto insurance policy includes endorsement FAQ 27 "Damage to Vehicles Not Owned by the Insured", which replaces the "Loss and Damage" coverage provided by the rental company.

If you are covered under this policy, it means you are protected against any damage to the rental car, but only in Canada and the United States. This coverage includes the same deductible options as for your own vehicle. Simply check with your insurer that the coverage amount is higher than the value of the vehicles you can rent.

Regarding third-party liability, your personal car insurance generally covers damage caused to others, including bodily injury and property damage. However, it's advisable to check the coverage amount, as it may not be sufficient for the entire rental period.

Coverage offered by the car rental agency

If you don't have car insurance, the coverage offered by the car rental agency, although often more expensive, could be a good solution. This is coverage against unpleasant surprises, generally called "third-party liability insurance." This insurance protects you in case of damage to the insured vehicle and prevents you from being sued by the rental company in the event of an accident.

It is worth noting that in Quebec, rental cars are always covered by liability insurance. However, you should check the coverage amount with your rental company, as it may not be sufficient.

If you already have a policy that includes liability insurance or collision insurance with no excess, you can claim only the coverage you need to avoid paying twice.

Insurance provided by the company that issued your credit card

If you pay for your rental car with a credit card, check if it includes coverage. Credit cards often offer coverage for damage to the rental car in the event of an accident. However, be aware that liability coverage is rarely included.

Your credit card typically offers car rental coverage with collision damage waiver (CDW) and no excess. This coverage includes repair costs in case of an accident, vandalism, or damage. However, each credit card company has its own terms and conditions. We therefore recommend contacting them and asking several questions to ensure you have adequate coverage.

It is important to note that you must absolutely decline the rental car insurance if you want to be covered by your credit card. If you don't, your credit card issuer will refuse to compensate you.

Remember your home insurance

While it may not fully cover losses resulting from an accident, your home insurance policy does offer coverage for belongings temporarily stored outside your home (this does not apply to car seats). Therefore, you will not need to pay for the "Personal Effects" insurance offered by the car rental agency. Again, make sure you have sufficient coverage.

Have peace of mind before hitting the road! Request a quote now and enjoy a safe adventure.

What documents should I take with me on a trip?

You are finally ready to go on your trip and your insurance has been purchased, but you still need to make sure you don't forget anything so that you have all the necessary information at hand, in case of need.

Rental vehicle insurance contract

Gather all documents related to your rental transactions in one folder. Print your rental agreement and make sure you have read all the terms and conditions.

Copy of endorsement FAQ 27 of your car insurance policy

Obviously, this only applies if you are travelling in North America. If so, check that your insurance policy includes this endorsement.

Proof of the protection provided by your credit card

You must contact your credit card issuer to obtain the necessary documents. Remember that credit card insurance only covers the car itself, not damage to other vehicles, property, or people.

Driver's license and contact information for the rental company

Finally, don't forget your Canadian and international driver's licenses. Also, if you encounter a problem, you'll be glad to have your agency's number handy.

Everyday car insurance

Finally, since we're discussing a rental car plan, it's always important to consider your everyday insurance coverage. If you want peace of mind while driving, especially in the city, you should purchase collision and theft insurance from a reputable insurance company.

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Frequently Asked Questions

What insurance do I need for a car rental?

You have several options: you can purchase personal car insurance, the insurance offered by your credit card company, or the rental agency's insurance. Ultimately, your choice will depend on several factors, including your preferred level of car insurance coverage, your financial situation, and the type of rental vehicle you choose. Explore all the available insurance options and select the one that best suits your needs.

Who can drive a rental car?

Generally, the car rental agency allows you to add additional drivers, provided they have a valid driver's license. These individuals must be listed on the rental agreement.

Anyone whose information is not included on the rental agreement is not authorized to drive the rented vehicle.

Does my insurance cover me abroad?

For added protection, especially if you're traveling abroad, consider purchasing additional liability insurance. In the United States, claims for accidents or other incidents can quickly exceed one million dollars.

If you plan to travel outside of North America for your vacation, your current auto insurance likely won't cover you. Endorsement FAQ 27 only applies to Canada and the United States, so you'll need to purchase additional coverage.

Your trip is approaching and you've planned to rent a vehicle? Compare car rental insurance in just a few clicks!