It’s summertime, which means road trips and family vacations abound. If you’re planning to rent a vehicle during your summer vacation, you’ll want to consider your insurance options. The last thing you want to do after a long flight is to arrive at the car rental company and worry about what coverage you have while the sales guy is trying to sell you the bells and whistles. Doing some quick research before you go can save you time, money, and offer peace of mind on your holiday.
First things first: Do you need rental protection?
Yes! All vehicles and drivers on the road need insurance coverage. It’s the law.
Do you need to buy the rental company’s insurance?
While all rental companies provide options for purchasing insurance, coverage is often limited and has restrictions. Not to mention they might try to convince you to buy more coverage than you need. The best way to prevent being scammed or paying more than you need to is by contacting your insurance company and your credit card company before you leave.
Looking over your current auto insurance policy is the best step to take before signing any sort of rental vehicle insurance agreement. It’s possible that your insurance covers you for rental vehicles. In addition, your current insurance provider can offer coverage at potentially lower prices to the rental companies. Most Ontario Insurance companies offer options for liability coverage on vehicles you don’t own. The annual fee for this coverage is usually way less than the daily fees of rental company’s insurance. One downside to this is that the additional coverage is often only valid in Canada and the United States, so if you’re renting a vehicle in Mexico or Europe, you will likely need to find coverage elsewhere. Once you decide you’ll be renting a vehicle, your best bet is to talk to your insurance broker to see your available options.
The other call you should place is to your credit card company. Often, credit cards for which you pay an annual fee will have some options for rental insurance coverage. Typically, they offer collision damage coverage. There may be certain limitations and conditions to this coverage, so it’s important you read the fine print. You don’t want to rent a certain type of vehicle and find out after you’ve had an accident that it’s not covered.
Before you get to the rental counter you want to know what coverage you have and what you might need. Going in armed with information will help you in the long run. Contact your broker to learn what your policy covers and how they can help you get the coverage you need. That way, you can enjoy the open road, worry free!