When you obtain a rental car for a short while, the cost of by-the-day rental car insurance from the rental car company can be reasonable, but over a longer-term rental, such as waiting for your vehicle to be repaired, that daily insurance cost can add up. So, what insurance options are out there? Out how long will your insurance cover a rental vehicle after an accident?
First, we should note that in Ontario collision insurance is not mandatory, but liability insurance is. However, if you don’t have the collision insurance coverage you personally assume full responsibility for the total cash value of the vehicle and any other charges resulting from any damages incurred while renting the vehicle. So you definitely want to make sure you have the right coverage! Let’s dig into the details.
The majority of personal insurance companies will cover a rental for up to 30 days, but this varies by business. Limits are imposed by auto insurance providers and credit card issuers, although their details vary too. Always verify with your insurance provider for reservations lasting more than two weeks to make sure you have appropriate coverage.
Insurance providers offer supplementary insurance that protects the vehicle in an accident. However, If you currently have collision insurance, it should cover the rental too, so you may not need to get additional coverage (confirm with your insurance provider to make sure).
According to the FSCO, most Ontario auto insurance companies offer additional coverage for damage to rental vehicles. This is known as “Legal Liability for Damage to Non-Owned Automobiles” or “OPCF 27” or “Rental Vehicle Insurance Endorsement.” If your auto insurance policy includes this, you already have coverage for damage to a vehicle that you don’t own, such as a rental car – if you are driving in Canada or in the United States.
There are two caveats to the OPCF 27.
1) It only covers Canada and the USA. If you are renting a vehicle/driving in other countries, you will need to purchase additional coverage.
2) The rental agreement must be in your name if you are the insured person named on the auto policy. Check with your insurance broker, agent, or insurance company for more details.
If your insurance policy does not include the OPCF 27 (see above), consider adding it. The annual cost of adding it to your auto policy is usually quite reasonable. This can save you money over purchasing collision damage waivers separately. It is definitely worth looking into!
In most cases, you can use a rental while your car is being repaired or until you replace it. However, the insurance company paying for it will only do so for a reasonable amount of time, so do not delay picking up your car when it is ready, or you may end up paying for the extra rental days. The adjuster will select several days that they will cover based on the needed repairs at the time of the claim. You may return the rental car and arrange to pick up your vehicle when you’re ready. In most cases, the company will call the repair shop to confirm that the repairs will take longer than expected. If it takes longer, you’ll have to contact them to get permission to prolong your rental duration.
In Ontario, if your automobile is totaled and the other driver is at fault you should discuss your rental needs with your adjuster. They can advise if the claim covers a rental. If it is your fault, and if your policy includes “loss of use” rental coverage, rental costs can be covered.
Your credit card may already provide collision damage coverage for your rental car. To be eligible for the coverage, you will likely need to charge the full amount of the rental to your credit card AND decline the collision damage waiver offered by the auto rental company.
Your credit card coverage will be subject to certain conditions. For example, the collision damage coverage may only apply when renting automobiles from auto rental companies approved by your credit card company.
You should check with your credit card company to learn more about the limitations of the coverage it provides to you and to make sure you have enough coverage (see below).
“In Ontario, auto insurance policies give a lot of coverage that individuals are often unaware of.”
If you have any questions or concerns about rental cars, specifically, if it is “how long will insurance pay for rental car”, continue to read on.
Our team at City Car and Truck Rentals wants to make sure that you are pleased with your rental cars and have a fantastic experience every single time. If you are looking for rental cars, remember to visit our rental car company.
We are pleased to have a wide variety of vehicles in our fleet. Our firm will also work with many insurance providers to ensure that the right insurance coverage is present on the car rentals.
Types of Rental Car Insurance
Four types of auto insurance will cost you extra if you choose to purchase them when renting a car, whether a budget economic car or a more luxurious luxury car.
Coverage for third-party responsibility
You are covered by third-party liability insurance if you cause damage or harm to other people or their property while driving a rental car.
To operate a car in Toronto, third-party liability coverage is essential, with minimum requirements in each province and territory.
Excess payment for property damage is usually capped if a liability claim exceeds the minimum amount. It is generally suggested that you expand your coverage to $1,000,000 or $2,000,000 because the minimal coverage will likely be insufficient if you cause serious harm or death in an accident.
If you are concerned if you have appropriate coverage, some rental car companies can provide extra liability insurance for a modest charge.
Collision and loss damage waiver (CDW & LDW)
This sort of car renters insurance only covers the charges if something goes wrong with the car. This might, for example, cover damage or loss caused by fire, theft, or accidents.
Get this insurance from a car rental business. It will certainly be pricey because they typically include extra coverage for lost revenue. In contrast, the car is being fixed, administrative costs, and so on (it can easily cost $30 or more per day).
While you may already have car insurance, it is possible that it does not cover this additional coverage. It may raise car rental fees, but it is often necessary to obtain this insurance. When hiring an automobile, double-check before declining this option. If you decline the collision damage waiver or other insurance offered by the rental car company you personally assume full responsibility for the total cash value of the vehicle and any other charges resulting from any damages incurred while renting the vehicle. So you definitely want to make sure you have coverage from the rental company, or from your other personal insurance coverages.
Personal accident insurance (PAI)
If you or your passengers are injured in an accident, this coverage pays for your medical bills, including coverage for accidental death and dismemberment.
Personal effects coverage (PEC)
If your personal property is damaged, lost, or stolen while in your rental vehicle, PEC insurance will cover it. When renting a car, this is normally packaged with PAI coverage, but it’s usually a separate coverage if it’s associated with your credit card.
The type of insurance package you purchase will go a long way in the duration and cost of your insurance.
Rental automobile coverage is frequently included in personal auto insurance policies. If it does, third-party liability coverage and accident payouts with the same limits as your vehicle are frequently included.
To be certain, read your insurance policy thoroughly or call your insurance company and inquire. When renting a vehicle, they’ll be pleased to help you understand what you’re insured for and what you’re not.
If you buy a travel insurance plan to cover you while you’re on the road, you might be able to add rental car insurance to it, even if you’re renting a fancy car.
This is normally provided as an add-on rather than as part of a standard insurance package and will usually cover your rental vehicle in the event of damage or loss. Towing, salvage, fire department fees, and fair loss of usage are all covered in some cases.
Of course, you should study your travel insurance package thoroughly or call your insurance provider to acquire all the information to be aware of what is and isn’t covered and how long the duration is.
If you have any questions or concerns about an insurance policy, the insurance offered, or if additional insurance is necessary, our team at City Car and Truck Rentals can certainly help.
Visit Our Rental Company to Obtain the Rental Car that Works for You
Our staff at City Car and Truck Rentals will make sure to answer any questions you might have on everything related to our vehicles. For instance, you may have questions about the rental period or how to go about reporting a car accident. We know that it is necessary to cover rental cars with the required insurance as it provides peace of mind.
You may wonder if you should use your own insurance company or what it make take to cover a rental car. Our team at our rental car counter can certainly help walk you through the various questions you might have when you visit our rental car company.
Reach out to us to learn about our rental costs, vehicles, and terms for your rental vehicle.
We are pleased to help out with your vehicle needs. Reach out to us today!