Do I need rental car insurance?

When travelling in a rental vehicle, it's important that you have proper cover when things go wrong. However, trying to understand what kind of insurance you actually need to buy can be perplexing.

In this guide, we'll explore whether you really need car rental insurance coverage and how to find the best cover for you.

Key takeaways

• To rent a vehicle in Canada and the United States, you must have a minimum level of third party liability coverage to cover damage done to other people and property. This may require you to purchase cover like Supplemental Liability Insurance.
• You'll often be required by contract to purchase a Collision Damage Waiver as well, unless you can demonstrate that you have equivalent cover from a different source.
• Getting additional coverage through providers like RentalCover also helps to reduce your insurance exclusions, and make sure you have nothing to pay in the event of an incident.

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Is rental car insurance necessary when hiring a vehicle?

Yes, some level of rental car insurance is necessary when hiring a vehicle in Canada and the United States. 

Here's how it breaks down:

• Third party liability insurance: You must have a minimum level of third party liability insurance which provides cover for damage done to other people and property. In some cases, this is included in the cost of your rental vehicle. In other cases, you might be required to purchase Supplemental Liability Insurance.
• Collision Damage Waivers (CDWs): Collision Damage Waivers are policies transferring the liability for damage of a rental vehicle from you to the rental car company, at a cost. You're not legally required to purchase a CDW. However, a hire car company may refuse to rent a vehicle to you if you don't have a CDW or equivalent cover.

Other cover: CDWs typically provide a solid level of cover, but they can come with many exclusions and a high deductible in the event of a claim. Alternative policies like RentalCover offer more comprehensive cover that's also 50% cheaper than the rental companies†. This cover is extremely valuable, helping you avoid large out-of-pocket costs on your next trip.

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Does my personal auto insurance policy cover rental vehicles?

Yes, in Canada and the United States, personal auto insurance generally offers some level of cover for rental vehicles. Usually the same coverage limits and deductibles will apply for your hire car.

This means that if you're renting a car that's more expensive than your usual ride, your policy's coverage limits may be too low to offer real protection. In many cases, your personal auto insurance won't cover things like loss of use fees charged by rental companies.

Does my credit card provide rental car insurance?

Rental car insurance is a common benefit of many different credit cards. If you're unsure, you can often find information online or by contacting your credit card supplier directly.

Credit card insurance is usually secondary coverage. This means you generally must file a claim with your primary insurer when an incident occurs. (Your primary insurer is often your personal car insurance.)

Then, you can file a claim with your credit card provider to receive further cover. In contrast, RentalCover works directly with car rental companies to settle claims, with 98% of claims paid out within 3 days.

What are the benefits of hire car insurance?

Comprehensive hire car insurance policies offered by providers like RentalCover mean you get to enjoy the following benefits:

• No deductible: With our policies, there's nothing for you to pay in the event of a claim. We also cover fees relating to towing and loss of use.
• Cover for a wide range of incidents: If your car hire insurance doesn't exceed the minimum legal standards, you may not be covered for a wide range of things that can go wrong on your travels. With more comprehensive cover, you can travel with true peace of mind, knowing you're covered for keys, underbody damage and more.‍
• Multiple drivers: Our policies cover all listed drivers on your rental agreement at no extra cost, so you don't need to stress about who's behind the wheel.

What does hire car insurance typically exclude?

If you rely on cover provided by rental companies and credit cards, you might find yourself facing a lengthy list of exclusions, such as:

• Multiple vehicle accidents.
• Fire and theft.
• Vandalism.
• Towing.
• Lockouts.
• Keys.
• Windscreens.
• Headlights.
• Tires.
• Underbody damage.

If you choose a RentalCover policy, you'll be covered for all of these incidents.

Cover your rental vehicle with RentalCover

Say "no" to hard sells at the rental desk when you choose a RentalCover policy. Our coverage is 50% cheaper than what the rental companies offer while also being more comprehensive†.

We allow you to travel with more peace of mind knowing there's nothing for you to pay in the event of an incident. Get your instant quote today and see how we can elevate your next hire car experience.

Hear from our rental car insurance expert

When you hire a car, you'll generally need a minimum level of insurance to meet legal standards and fulfil your rental company's requirements. For many drivers, it's worth going further and purchasing more insurance.

For example, getting a policy with RentalCover means you can enjoy more comprehensive cover while paying less than what rental companies charge. You can travel in comfort, knowing you won't face massive out-of-pocket costs if things go wrong.