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Navigating Rental Car Insurance in Ontario

June 1, 2021

When renting a car for a family vacation, road trip, or other personal use, the last thing you want to worry about is your car insurance coverage. Before renting a car, you'll have to decide whether to purchase additional car rental insurance or not.

The coverage and deductibles you have on your personal automobile insurance policy normally applies to a rental car, as long as it's being used for pleasure and not for business.

If you don't have comprehensive coverage, any physical damage or a loss to the rental vehicle may not be covered. In this case, you may have to pay for the claim yourself, which could be thousands.

Ontario Car Rental Insurance

The only way to protect yourself in the event of an accident in a rental car is with the right insurance policy. Therefore, it's important to understand all of your Ontario car rental insurance options.

  1. OPCF-27 Endorsement: Ontario Rental Car Insurance
  2. Insurance With the Rental Car Agency
  3. Credit Card Rental Car Agency

OPCF-27 Endorsement: Ontario rental car insurance

Adding a rental car endorsement (OPCF 27) to your current car insurance allows you to transfer your car insurance coverage from your own vehicle to a rental car. This can typically be done at a low cost, but you'll want to have a solid understanding of what is and isn't covered under your policy.

Insurance With the Rental Car Agency

Car rental agencies themselves provide insurance - coverage that often has added perks like roadside assistance. While purchasing rental car insurance in Ontario through a rental car agency is convenient, there are a number of considerations to keep in mind.

Firstly, insurance purchased through a rental car agency can be expensive. Second, insurance from rental car agencies often carries a number of restrictions and may not include protection from lawsuits. As such, if you purchase coverage from a rental agency, it's important to know exactly what you're getting.

Credit Card Rental Car Insurance

Many credit cards provide some form of rental car insurance, so long as you use the card to rent the car. In most cases, insurance of this kind provides basic protection for damage and theft. This type of coverage is typically only available if a person denies the insurance offered by the car rental company.

Again, limitations and exclusions may apply, so do your research before going this route. It's important to note that this coverage shouldn't be used as a replacement for insurance, as the protection is typically limited to only a few thousand dollars.

Depending on your Ontario car insurance policy, you may need additional coverage in order to be fully protected. For example, the type of vehicle you rent (e.x., moving vans, trailers, luxury cars, and RVs) may have insufficient coverage under your policy.

5 Tips for Buying Rental Car Insurance

These considerations can make the process of securing adequate insurance for your rental car difficult. To ease the process, keep these tips in mind the next time you plan to rent a car:

  1. Check with your insurance broker whether your current car insurance policy extends to rental vehicles.
  2. Ensure the amount you're covered for is equal to or greater than the value of the car you're renting.
  3. Check that your insurance coverage is comprehensive and includes protection for third-party liability, collisions, theft, and vandalism.
  4. Compare rental car insurance prices online. Keep an eye out for discounts and deals.
  5. Check with your insurance broker about how an accident in a rental car would affect your car insurance rates if you make a rental car insurance claim.

Above all, to save you time and the headache of navigating your Ontario rental car insurance options, it's important to speak with a qualified car insurance broker.

A Scrivens insurance broker will explain your options and ensure that you're protected in the event of an accident.

Contact your Scrivens broker today.