When you rent a car, you usually have a few choices for rental car insurance coverage. While each option has pros and cons, there are a few scenarios when you’ll want to consider saying yes to the coverage offered by your rental car company.

I know what you’re thinking. “What? Isn’t rental car insurance a scam?!”

Well, let me explain.

There’s a lot of confusion and hesitation among Toronto drivers when it comes to purchasing rental car insurance. Most people think it’s just another way for the car rental company to suck more money out of you. In fact, the majority of drivers choose to decline this coverage. Instead, they either rely on endorsements from their personal car insurance policy, or coverage included through one of their credit cards. Although those can both be good options in some situations, they may not always be the best way to go.

The truth is, buying insurance coverage directly from the rental car company can be an unnecessary expense. However, there are a few situations when it’s your best, or only option for properly insuring yourself, your passengers, and your rental vehicle.

Let’s take a look at the three most common scenarios when you’ll want to consider purchasing coverage directly from the rental car company.

You don’t have a personal car insurance policy

This one might seem obvious, but it’s very important. As we learned in the previous post, accident benefits coverage will extend from your personal car insurance policy to cover you while using a rental vehicle. In addition, you can choose to purchase an extra endorsement to cover any physical damage while driving other vehicles. But what if you don’t have a personal car insurance policy to rely on? How will you protect yourself and the vehicle?

In this case, you’ll definitely want to accept any coverage offered by the rental company. Obviously you never want get in an accident while driving your rental car. Moreover, you definitely do not want to suffer any injuries as a result. However, if something bad does happen, you’ll be glad to have insurance coverage to help cover the costs. Without a personal policy to rely on, you won’t have anything to protect yourself, your passengers, or the vehicle in the event of an accident.

You’re renting a moving truck

Okay, let’s say you do have a personal car insurance policy, and you’ve added OPCF 27 to cover rental vehicles. You’re all set when you rent a moving truck, right? Wrong. You see, coverage under your personal car insurance policy only applies to vehicles with a gross vehicle weight of 4500 kilograms or less. This means that your personal policy will not extend to cover moving trucks. For this reason, you’ll want to check ‘yes’ to the damage waiver offered by the truck rental company. If not, you could be stuck paying for expensive repairs out of your own pocket.

You’re renting outside Canada or the US

Congratulations! You’re finally taking the family to Europe for a well-deserved vacation. You have your personal car insurance policy, and you’ve added OPCF 27, you’re set to rent a car when you arrive. But there’s one problem. Your Ontario auto insurance coverage only extends to cover you while driving in Canada and the United States. That’s right. If you are driving a rental car outside one of these two countries, you’ll need to get additional insurance protection. Do some research, and remember, coverage from each company can vary. Be sure to read the fine print.

The bottom line is this, when you’re renting a vehicle you want to be sure you have the insurance coverage you need to protect you from any out of pocket expenses. That way, if you damage the car, or sustain any injuries in an accident, you’ll have the peace of mind in knowing you’re covered.

So, if you’re planning to rent a vehicle and you still have questions, give us a call. It’s always smart to review your individual situation with your broker to help avoid any unwanted surprises.
Drive safe.