The weather is just about right for road trips and long weekend getaways. If you are considering renting a car for an upcoming trip, it’s important to understand what your personal auto insurance actually covers and what it doesn’t. Most drivers assume their personal auto insurance covers rental cars, but every policy is different. At Duliban Insurance, our brokers know the right questions to ask to ensure that your coverage matches your lifestyle.
Does Your Auto Insurance Cover Rental Cars?
In many cases, your existing auto insurance policy can extend to rental vehicles – but only if you have the right coverage in place. If your Ontario auto policy provides full coverage, it may also apply to a rental car. Below is a breakdown of the types of coverage and what it protects:
- Liability coverage protects you if you injure someone or damage property
- Collision coverage covers damage to the rental vehicle if you’re at fault
- Comprehensive coverage protects against theft, vandalism, or weather damage
What You Need to Watch For:
Though you may have coverage, understanding the fine details is equally important. Coverage limits, vehicle restrictions, and loss-of-use fees can apply, and without subsequent coverage, you may be left footing the bill.
- Coverage limits: Your policy limits still apply to the rental, so be sure to ensure it covers the cost of the vehicle should there be an accident
- Vehicle restrictions: Luxury vehicles, large SUVs, or trucks may not be covered
- Loss of use fees: Rental companies may charge additional fees not covered by your policy
Should You Buy Insurance from the Rental Company?
When picking up your rental car, you will likely still be asked whether you want to purchase additional insurance. The question remains – do you actually need it?
You MAY NOT need it if:
- You already carry full coverage on your personal vehicle
- Your policy extends to rental vehicles in Canada or the U.S.
- You have coverage through the credit card you used to rent the car
You SHOULD consider it if:
- You only carry basic liability insurance
- You’re traveling internationally
- You want to avoid paying out-of-pocket in case of a claim
Are You Covered for Road Trips?
Full-coverage auto insurance policies in Ontario generally follow you anywhere within Canada and the United States. So whether you are driving from Niagara to Muskoka, or heading across the board, you are generally covered. It is still good practice to:
- Notify your broker if you’re leaving the country for an extended period of time
- Double-check your liability limits, especially when travelling in the U.S., where claims tend to be higher
- Confirm roadside assistance coverage
What About Driving Someone Else’s Car?
Driving someone else’s car is different than renting a car in Ontario. If you’re borrowing a vehicle for a road trip, there are some stark differences to note:
- Insurance usually follows the vehicle first, not the driver, so you will be covered under the owner’s policy (if permitted to drive it)
- Your personal auto insurance policy may act as secondary coverage in the event of an accident and/ or claim.
Common Gaps to Avoid
It is never safe to assume you are fully covered when it comes to renting a car in Ontario. Some of the most common gaps in coverage include:
- Renting a vehicle for business use
- Travelling outside of Canada/ U.S.
- Not having the required personal coverage in place includes collision and comprehensive coverage
- Assuming your credit card insurance covers everything you need
How Duliban Insurance Brokers Can Help
At Duliban Insurance Brokers, we make sure you are covered when you’re on the road. Our team of experienced auto insurance brokers will discuss all of your needs and ask the right questions to ensure that you are protected for everything you need.
- Review your current auto policy
- Confirm rental car coverage
- Recommend additional protection if needed
Final Thoughts
It’s always a good idea to review your auto insurance coverage, but it’s especially important if you plan on taking road trips in a rental car. A quick call today can save you thousands of dollars and give you the peace of mind you need.
Reach out to Duliban Insurance today and speak with one of our experienced auto insurance brokers – we are here to help you stay protected!
