Do I Need Rental Car Insurance If I Have Insurance? Understanding Your Coverage

When it comes to safeguarding your vehicle, insurance is undoubtedly a wise investment. But what about those times when you find yourself behind the wheel of a rental car? Are you automatically covered by your existing insurance, or do you need to consider additional rental car insurance? In this comprehensive guide, we'll delve into the intricacies of rental car insurance in Canada and explore whether your current coverage extends to rental vehicles.

The Basics of Rental Car Insurance in Canada 

While Canadian drivers aren’t obligated to buy rental car insurance directly from the rental company, ensuring adequate coverage in case of an accident is crucial. Third-party liability is a legal requirement for vehicle operation across all regions of Canada. As a result, rental car insurance typically includes the legal minimum, but it's advisable to double-check.

To guarantee that your coverage meets your specific needs, it’s essential to grasp the foundational aspects of rental car insurance in Canada. Interestingly, you might already possess Canadian car insurance for rental cars through your auto insurance:

Auto Insurance 

Several car insurance providers in the province provide additional coverage to address the liability associated with damage to non-owned vehicles. This coverage, commonly referred to as "Legal Liability for Damage to Non-Owned Automobiles" or OPCF-27, stands as a valuable endorsement, providing renters with a sense of security at an affordable rate. Without this coverage, renters would be financially responsible for any collision-related costs incurred while operating the vehicle.

However, it’s important to note, that OPCF-27 is subject to specific limitations and exclusions. For example, coverage for damages acquired while using the vehicle for commercial purposes, such as for ridesharing or deliveries, may not be included. In addition, coverage may exclude any driving outside the United States and Canada. For that reason, it’s imperative to thoroughly review your car insurance policy. 

Prepare for Your Next Adventure with Acumen Insurance

When it comes to renting a vehicle, Acumen is more than just an insurance brokerage. Demonstrating a strong customer-first philosophy, our team is here to lend a helping hand, whenever you need it, guiding you through the maze of insurance jargon, and enabling you to make choices with confidence.

Reach out to us today, and let’s chat about customizing a car insurance plan that fits your next rental adventure. Here’s to happy travels and well-informed driving!