Car rentals (insurance with the renting company or with a credit card)
If you rent a car in Canada or abroad, it is possible that your current insurance policies will cover collision, accident or theft risks. Verify your policies.
Otherwise you have a choice between the Insurance offered by the rental company or as a benefit of certain credit cards.
In the first case, the company will charge a daily fee of up to $30.00 a day.
On the other hand, most credit cards, when used to pay the rental, (you have to check
the benefits associated with yours) will insure the material risks associated with driving.
It is evident that using a credit card will save you money.
Should you choose this option, keep in mind that this type of coverage is subject to strict rules:
1. All of the rental operations should be done with the same card : reservation, initial deposit, final payment. The « same card » excludes another one issued to the same account.
2. In the rental contract, refuse the coverage offered by the Company. There is a section to this effect in all similar documents : sign it.
3. In case of damages, take pictures if possible and report the incident (Collision or theft)
immediately to the card issuer.
4. The insurance may not cover certain particular vehicles (Maserati e.g.) or driving in certain countries.
The insured risks are material damages. Physical or material injuries to third parties are usually covered by the rental companies. This is a coverage that in most jurisdictions, have by law, to be assumed by the rental company.