Car Rental Insurance Canada
Complete rental guide for Canada.
Canada is one of the world’s great road trip destinations, from coastal drives of British Columbia to the wide-open highways of the Prairies to the historic streets of Quebec.
Driving here brings its own challenges: winter weather, wildlife on rural roads, and heavy traffic in cities like Toronto.
This guide covers what you need to know about rental car insurance in Canada — what the rental desk will offer you, and the driving rules worth knowing before you go.
Understanding rental car insurance in Canada
Every car rental in Canada comes with basic third-party liability cover in the price, but that’s the legal minimum, and it doesn’t protect your own rental vehicle. Cover for damage or theft has to be purchased separately: either a Collision Damage Waiver (CDW) from the rental company, or equivalent from a provide like RentalCover.
With the rental company
What isn't included and what you may pay out-of-pocket.
High deductible.
CDW from rental companies often leaves a large amount to pay if you make a claim.
Towing, lockouts, keys & windscreens.
Commonly excluded from basic CDW.
Loss of use & admin fees.
Often charged on top, even with CDW.
With RentalCover
Fill in the gaps with protection from RentalCover.
$0 deductible.
Nothing to pay if something goes wrong.
Towing, lockouts, keys & windscreens.
All covered.
Loss of use & admin fees.
Included, not charged separately.
Beat the rental desk price by 50%†— for just a few dollars a day!
Get an instant quoteKey driving information in Canada
A quick guide of rules and conditions that catch out most visiting drivers. For more detail, see Transports Canada’s road safety guide.
Right turn on red
Allowed after a full stop almost everywhere, except Montreal.
Cities are far apart
Plan fuel stops and break up long drives.
Speed limits
30-120km/h nationally; watch out for lower posted limits in towns and school zones.
Wildlife hazards
Moose, elk and deer are serious hazards, especially at dawn and dusk in rural areas.
Toll roads
Most roads are free; a small number charge tolls (e.g. Ontario’s Highway 407).
International driving permit (IDP)
Needed if license isn’t in English or French.
Winter tires
Mandatory part-year in Quebec and British Columbia. Check requirements first.
Blood Alcohol Limit
0.08% is the federal limit, but provinces can suspend your license at 0.04-0.05%.
Road signs
Standard yellow/diamond warning system in English, French or First Nations languages.
Pre-departure preparation checklist
Valid driver's license
Bring your full driver's license and an IDP if your license isn’t in English or French.
Book RentalCover protection
Buy before you travel. This is typically 50% cheaper than at the rental desk.†
Review rental agreement
Read carefully and note the fuel policy, mileage limits and any additional fees.
Security deposit
Ensure your card can cover the deposit (often CA$500-$3,000).
Download important documents
Save copies of your license, protection documents, rental confirmation and passport.
What to do at the car rental desk
Decline extra insurance
Have RentalCover Full Protection? Decline the rental desk's CDW. You're already covered, even if they push back.
Conduct thorough inspection
Photograph existing damage and take a 360° video before driving.
Check fuel level
Note the level at pickup and confirm your rental company’s refueling policy.
Understand the vehicle
Get familiar with the controls and ask about anything unfamiliar.
Emergency numbers
Save the rental company's roadside assistance number.
Ready to hit the road with confidence?
Get an instant quoteWhat to do in the event of an accident
Stay calm and handle the urgent things first, then work through the rest once everyone is safe.
Emergency number in Canada - 911. Check for injuries and call 911 if anyone’s hurt. Move to safety is possible.
Right now - at the scene
Make sure everyone is safe
Check for injuries and call 911 if anyone's hurt. Move to safety and switch on hazard lights.
Call the police if needed
Required for injury or major damage. Call 911, or the local police for non-emergencies.
Once everyone is safe
Take Photographs
Photograph all vehicles, the damage, road conditions and the location. Get any witness details.
Exchange information
Swap names, vehicle registration and insurance details with the other party. Don't admit fault at the scene.
Notify the rental company
Contact them as soon as possible. They'll guide you through the next steps.
File your claim with RentalCover
Submit a claim online with your photos, the police report and repair invoices. Claims are typically processed within 5–7 business days.
Frequently asked questions
Credit card coverage varies significantly from one provider to another. Many credit card rental car insurance policies offer protection for vehicles in Canada, especially if issued in Canada.
Credit card rental insurance is usually secondary coverage; it kicks in after a primary form of coverage has been activated, such as a personal car insurance policy. In this case, your credit card cover may offer insurance for your personal car insurance deductible, or protection for items your personal insurance includes.
Since personal car insurance often doesn't apply when you travel overseas, some credit card policies will default to primary coverage in these cases.
Even if your credit card coverage applies in Canada, your coverage may still have significant exclusions worth considering. If you have any questions about your coverage, contact your credit card company directly.
Some other forms of car rental insurance coverage you may be able to purchase include:
- Super Collision Damage Waiver (SCDW): A more premium version of a CDW, generally reducing your excess to zero and offering more comprehensive cover for items a rental agency's CDW excludes. You can still face out-of-pocket costs for things like towing and loss of use.
- Personal Accident Insurance (PAI): Covers accidental medical costs, emergency care, and accidental death for drivers and passengers. Most commonly offered by rental companies.
- Personal Effects Coverage (PEC): Covers personal belongings like clothes, electronics, and jewelry if damaged or stolen in your vehicle. Usually offered by the rental agency for an added fee.
- Supplemental Liability Insurance (SLI): Additional liability coverage if you're unsatisfied with the minimum included in your rental price, covering costs related to injuries to others and damage to their property.
Some travel insurance policies include a level of rental vehicle cover. For example, some policies offer rental vehicle excess/deductible insurance, covering your out-of-pocket costs if you make a claim with another insurer, like your rental car company.
Your travel insurer typically won't offer primary cover for damage or theft to the rental vehicle itself.