Everything you need to know about car rentals
Everything you need to know about Car Rentals
Are you renting a vehicle, or renting out your vehicle? Here is the lowdown on insurance for all of your car rental scenarios.
I'm travelling and will be renting a car
If you're planning to travel and rent a vehicle within Canada or the Continental US, your policy may be able to offer an extension of collision and comprehensive coverage through "SEF 27 Liability for Non-Owned Automobiles". In order to qualify you must carry these collision and comprehensive coverage on your vehicle, and the rental car contract must be in your name. This coverage generally contains a 30-day limitation, as well as a vehicle value limitation, so it's best to confirm your plans with your Broker.
Generally speaking, and subject to your policy conditions, your policy may extend liability insurance to a vehicle that you are renting. We recommend carrying no less than $2,000,000 in liability insurance as insurance claims are settled in Canadian Dollars (CAD), even if they occur outside of the country.
DYK: Canadian Auto Insurance will not extend into Mexico. If you are driving across the border, you will need to procure special insurance for the duration of your visit.
I will need a rental if I have an accident
If you're like many Maritimers, having a vehicle is essential whether for commute, or for personal errands. If you will require a rental car following an insured accident, it's important that you carry "SEF 20 - Loss of Use" on your car insurance policy. Coverage options vary, but we recommend a minimum limit of $1500 per loss or occurrence. The more coverage you have, the longer you will have your rental, which is so important if your vehicle is waiting for a repair part.
DYK: Once you are provided with a claim settlement offer, you are usually required to return your rental within three days. If you suspect your car is not repairable following an accident, we recommend starting the car shopping process immediately.
I'm renting out my car to earn extra money
Car sharing platforms can be a great way to offset the cost of vehicle-ownership. Platforms like TURO offer car owners a place to rent their vehicles to travelers on a short term basis. If you are planning to rent your car through a car-sharing platform, you will need to report this change in use to your insurance company so that you maintain proper coverage.
Do you have questions about car rentals? Talk to us - we're always happy to help!
