Does Auto Insurance Cover Rental Cars?

When renting a vehicle, it is not uncommon to have some questions, especially relating to insurance coverage. After all, you want to ensure you, your passengers, and your vehicle are well protected in Unionville, Richmond Hill, or wherever your travels take you. At Pfaff Autoworks, two of the most frequently asked questions we receive are: Does auto insurance cover rental cars, and are rental cars covered by personal insurance? Let our team provide the answers below so you can make the best decisions for maximum peace of mind.

Does Private Auto Insurance Cover Rental Cars?

So, does auto insurance cover rental cars? It depends on the policy. If you opted for Legal Liability for Damage to Non-Owned Automobiles when you bought your personal auto insurance, your policy likely offers at least some coverage for car rentals. This additional coverage is also known as OPCF 27 in Ontario or SEF 27 in Alberta, so look for one of these endorsements on your current auto insurance plan to see if you are covered.

Here are a few types of coverage that may come with one of the above endorsements, but, again, check your policy for exact coverage details:

• Liability insurance keeps your out-of-pocket costs to a minimum if you cause an accident or injury in your rental car; liability is legally required in every province.
• A loss damage waiver or collision damage waiver minimizes your costs if your rental car is stolen or damaged, helping protect you from legal action by the rental agency; you might have one of these waivers if your personal policy includes collision and comprehensive coverage and one of the endorsements discussed above.
• Personal accident insurance is another name for accidental death and dismemberment coverage for both you and your passengers.

Are Rental Cars Covered by Personal Insurance?

Now that you know that, in certain cases, auto insurance does cover rental cars, you may be wondering if other kinds of personal insurance provide any safeguards. Again, it depends on your coverage details. Personal accident insurance may be included in your private auto policy, or it could be a part of your health insurance policy. Also, personal effects coverage, which helps you pay for losses to personal property inside a rental car, may be included in your homeowner’s insurance or your rental insurance. Consult your policies to see if you have either of these protections already in place.

Learn More at Pfaff Autoworks

Feel free to contact us in Markham if you would like more information about how rental cars are covered by personal insurance. With insurance looking out for you and your rental car, you can take to the roads of Vaughan and beyond with confidence.