Car Rental Insurance: Are You Covered? - PowerPoint PPT Presentation

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Car Rental Insurance: Are You Covered?


Have you rented a car for your vacation and on the way you have an accident? Now, what to do? Don’t get confused. Here in the given post, you will find how to cover car rental insurance. – PowerPoint PPT presentation

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Title: Car Rental Insurance: Are You Covered?

Car Rental Insurance Are You Covered?
  • Picture it youre planning a weeklong trip to
    tour around the province, starting in St.
    Catharines or Niagara Falls, going up through
    Algonquin Park and back through the Haliburton
    area, with stops in Toronto and Hamilton, to see
    the sites.
  • Sounds great, right? Then you get an email from a
    car rental company you used once, with a special
    week long offer. Your car already has a lot of
    mileage so this seems like a great solution.

  • Off you go. Halfway through Algonquin Park,
    you have an accident with another vehicle that
    shot across the road in front of you, so they
    could photograph a moose. Now what?
  • The steps you take following an accident,
    whether in your car or a rental car, are more or
    less the same except that you will need to notify
    the car rental agency as well.
  • The more important thing to know is the
    steps you need to take BEFORE you leave the
    agency lot with your rental.

  • Before You Go Pick Up Your Rental, Check Your
    Insurance Coverage
  • Actually, dont just check double check and
    triple check your insurance coverage. There are
    three ways you can be covered in your rental
  • Your own auto insurance policy

  • Insurance providers in Ontario have an
    endorsement available for auto policies called an
    OPCF 27Legal Liability for Damage to Non-Owned
    Automobiles. Its more commonly known as the
    rental vehicle endorsement. The OPCF 27 is
    intended to extend your insurance policy to
    include rental vehicles.

  • Many policies have this included but its not
    automatic, so you need to check your policy to
    see if you have it. It can be added on to most
    policies for a minimal annual cost. Certainly,
    its cheaper than the daily rate for the
    Collision Damage Waiver offered by the rental car
    company (more on that below!)
  • A couple of caveats with regards to relying
    on the OPCF 27 endorsement to cover your rental

  • It will only apply to vehicles being driven in
    Canada and the US. If you decide to venture
    further, into Mexico for example, or if you are
    renting a car overseas, you would need additional
  • The endorsement only applies if the person
    renting the car is the same as the person named
    on the policy. Further, it might not cover any
    other drivers who are not named on your policy.
    So if your cousin is coming with you on the trip,
    they cant drive the rental without additional
    coverage being purchased.

  • If something were to happen to your vehicle at
    homesay, it got stolenAND you had an accident
    with the rental car, the insurance company might
    only cover one claim.
  • What coverage you have on your existing car is
    what coverage you have on your rental. If you
    dont have collision on your car because its an
    older model, you wont have it on the rental.

  • Your coverage wont extend to a high end or
    luxury vehicle, so you can forget about renting a
    Ferrari, if what you normally drive is a Toyota!
    It will also not extend to trucks and vans, so if
    youre renting a truck to help your brother move
    to a new apartment, buy the coverage the rental
    agency offers you.
  • But Im covered on my credit card

  • Many credit cards offer collision damage
    protection as part of the benefits but you need
    to check your contract with them to make sure of
    the details.
  • Most cards also have conditions such as
    requiring that you rent from certain companies in
    order for the coverage to apply, and limitations
    as to who may drive the vehicle.
  • Also, not all cards include third party
    liability coverage so if you dont have a car
    insurance policy of your own, you might not have
    liability coverage.

  • Youll also have to use that card to pay for
    the entire rental, and they might require that
    you decline the Damage Waiver that the rental
    company offers you. And again, forget about the
  • Car rental agency coverage
  • Car rental agencies will require you to
    accept or decline a Collision Damage Waiver
    policy, charged on a daily basis, for the
    duration of your rental.

  • For most collisions, having the waiver
    basically ensures that you dont have to deal
    with the cost of some damage to the vehicle.
  • This coverage only covers the value of the
    vehicle. If you dont have an OPCF 27 on your own
    insurance policy, or you dont have a car with a
    policy, you wont be covered for injury, loss of
    property, or even liability.
  • You could end up facing a lawsuit if you are
    at fault in a collision. Some agencies offer
    additional coverage for medical expenses, but
    these too need to be carefully reviewed.
  • As with the other options, there are
    exceptions, so read the fine print carefully!

When You Pick Up Your Car Rental, Double Check
The Fine Print On Your Rental Agreement
  • If you decide to drive along unpaved roads while
    on your trip to Algonquin Park, and you bought
    the Collision Damage Waiver coverage from the
    rental company, you might not be covered for any
    resulting damage from an accident on said road.

  • If you drive to a different province without
    having specified that in the contract and have an
    accident there? Your coverage could be void. If
    you break the law in the course of the accident,
    and receive a ticket, you could void the
  • These and other exceptions vary from rental
    agency to rental agency so its absolutely
    essential that you check the fine print before
    you sign.
  • It sounds complicated, but really, its all
    about checking the details with your insurance
    broker / agent and / or your credit card company
    before you leave on your trip, to make sure you
    are covered for all eventualities.

  • The cost of a damaged rental car is NOT
    something you want to have to deal with, to say
    nothing of injuries of people in the other
    vehicle, if youre at fault. Take your time, read
    the fine print, and enjoy your trip.
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