Purchasing insurance for a car you are only renting may sound counterintuitive – after all, why make an extra purchase for something you do not actually own? But drivers of rental vehicles still face the same risks as those who drive their own vehicles when it comes to damages, injuries, and the steep costs involved.
So, when and what should rental car drivers purchase to protect themselves?
It turns out that in some cases, drivers who already have certain insurance policies in place do not have to purchase rental car insurance. Insurance Business’ very own Mark Rosanes has a new guide on rental car insurance, which gives the lowdown on how the product works, and which other types of insurance cover for renting drivers.
Read Insurance Business’ rental auto insurance guide here
According to the guide, it is unnecessary to purchase rental insurance when you have the following policies:
Private auto insurers operating in Ontario, Quebec, Alberta, and some parts of Atlantic Canada offer additional coverage for rental vehicles; these endorsements render separate rental auto insurance redundant.
Some credit cards offer collision damage coverage on rental vehicles; cardholders will have to charge the full amount of the rental on their card to enjoy this benefit. However, third-party liability is not covered by the cards.
Those who have homeowners’, condo and renters’ insurance policies will be pleased to know that their contents coverage should also extend to personal belongings lost or damaged while in a rental car.
Life insurance and/or group health benefits plans with short- or long-term disability coverage can waive the personal accident insurance part of rental insurance.
Certain trip cancellation, travel health, and medical evacuation insurance policies allow rental car coverage to be included as an add-on; and depending on the provider, it can also cover vehicle damage. Some travel insurance policies may also cover costs associated with towing, salvage, fire department charges, and reasonable loss of use.
Read Insurance Business’ rental auto insurance guide here
