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Excellent
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July 15
Auto Insurance
I was looking for an insurance rate that would help me save money, I did a Googl...
Louise Beaton
July 7
Great and honest service !!!
Meaghan Ford was amazing with her service and very patient in explaining all the...
Zee Sajid
July 1
excellent service
excellent service
An Luu
June 22
Highly recommended
Excellent customer service. Was very patient and answer my customers toughly. Fo...
Karan Parmar
June 18
Chelsea was very helpful
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Chris
June 11
Very nice broker
Very nice broker. Good service. Found a great deal.
Meredith Berggren
June 9
Simple, fast, affordable!
Took a little longer than expected for the billing to go through, but otherwise...
Jonathan C
June 5
Awesome work
wow what an awesome rep. He did up everything, extremely fast and was very under...
Delroy Paul
June 4
It was a pleasure dealing with your…
It was a pleasure dealing with your broker, it made switching insurance companie...
Michael Sheridan
May 27
Excellent customer service
This is the first time I got insurances from Direct Rate.I have nothing but good...
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May 26
Quick service
Quick service, good price
dl
May 22
Imad Harrouk was great !
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May 21
Imad Harrouk helped me get the best…
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May 20
Excellent !!! Very competitive rates !!
Excellent customer services also they have very competitive rates !!
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May 20
Excellent Service
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May 18
I was treated fairly and walked through…
I was treated fairly and walked through my purchase.I enjoyed the agent was exce...
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May 14
Highly recommend
Great experience, simple to use and they gave me a lot of options at prices that...
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May 11
Easy
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May 6
Sonia was very helpful and nice…
Sonia was very helpful and nice throughout the whole process. She got me the bes...
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May 6
Very friendly and professional
Very friendly and professional. She always try to help. Really appreciate.
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May 5
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April 27
Great rates!
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April 22
The service was excellent
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April 19
Fast and professional customer service
Fast and professional customer service. All of my questions were answered and I...
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Learn more about rental car insurance in Canada.

Rental car insurance covers you if you cause damage to a rental car. This type of coverage is optional and can be purchased on top of the mandatory insurance coverage required in the area you live in.

In some instances, it may be unnecessary to purchase rental car insurance if you have a personal auto insurance policy.

We don't compare rental car insurance rates on LowestRates.ca. But you can get a car insurance policy by applying for a quote through the form above.

Once you select your quote, a broker or agent will be in touch with you to help you set up your policy. Next, all you have to do is inform them that you’d like to add a rental car endorsement to your policy and they’ll be happy to walk you through the process.

Our team will ensure you find the best rental car insurance coverage available.

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See how our customers save big on auto insurance.

CustomerLocationVehicleLowest RateAverage RateSaved
Quote from July 24, 2021
Customer
Male, 56 years old
Location
ontario
Vehicle
2015 TOYOTA TRUCK/VAN RAV4 XLE 4DR AWD
Lowest Rate
$3,675/yr
Average Rate
$5,493/yr
Saved
33.00%
Quote from July 24, 2021
Customer
Female, 20 years old
Location
ontario
Vehicle
2012 HONDA CIVIC LX 4DR
Lowest Rate
$4,878/yr
Average Rate
$8,958/yr
Saved
46.00%

Your questions about rental auto insurance, answered.

What is rental car insurance?

Rental auto insurance covers drivers for any damage to a rental car.

Rental car insurance coverage isn’t mandatory but the option will be put forward when you sign for the rental car. That’s why we encourage all drivers to review their own car insurance policies to make an informed decision on rental insurance.

For the best rental car insurance rates compare quotes on LowestRates.ca and speak to a broker or agent about adding it to your policy.

How does rental car insurance work?

People who don’t own a vehicle are recommended to purchase insurance from the rental car company. However, many credit cards offer rental car insurance coverage for consumers who use the card to book the rental. Make sure to review the coverage offered by your credit card company.

But regardless of whether someone has an existing policy, or purchases one from a rental company, you’ll need to decide if you want to add supplemental liability and personal effects coverages. These are both strongly recommended, or you’ll be on the hook for a lot of money in the event of a loss.

For the most comprehensive coverage, you’ll want to make sure you have the following:

Collision Damage Waiver

Protects the renter from paying for a damaged or stolen car. Sometimes also known as loss damage waiver, this means that the rental company waives its right to pursue you for damage.

This waiver may be redundant if you have a car insurance policy with a rental car endorsement and/or coverage through a credit card.

Supplemental Liability Insurance

Rental car liability insurance covers the renter for bodily injury or death. This coverage tops up the mandatory minimum liability insurance set to between $1 and $2 million.

Personal Accident Insurance

Covers the renter and all passengers inside the car for personal injuries and medical expenses.

Personal Effects Coverage

Covers the renter against loss, theft or damage to their personal items. If you have home insurance, there’s no need to buy personal effects insurance from a rental car company because it provides coverage for any possessions you have in the car.

The best way to get a cheap rental car insurance rate is to speak with a broker or agent after completing a quote on LowestRates.ca.

Does my auto insurance cover rentals?

The coverage on your personal car insurance policy may extend to a rental car. For example, if your personal vehicle is damaged in an accident, your policy may help pay for a rental car while yours is in the shop.

But Loss of Use coverage on your personal car does not mean that drivers automatically have coverage for a rental car. Many consumers misunderstand this and believe that it does.

If you rent cars on a regular basis, some insurance companies may offer an endorsement or extra coverage that allows drivers to apply their regular auto insurance policy to a rental car. This endorsement is called SEF\OPCF 27 (often referred to as a “27”).

Always check with your insurance representative — your agent, a broker, or even directly with the insurance company — to see what level of coverage you have before you rent a car.

Is it necessary to buy rental car insurance?

Generally speaking, rental car insurance is not required because drivers are often covered by their personal insurance policies. However, there are circumstances where we'd recommend buying rental vehicle insurance. You'll want to buy insurance from the rental car company if:

  • You don't have car insurance.
  • You don’t have enough coverage (i.e. your auto insurance policy only covers the minimum.)
  • You’re a high-risk driver.
  • You’re renting sports or exotic vehicles.
  • You’re travelling across provincial or territorial borders (insurance and liability coverage rates vary by province).

Do you need car insurance to rent a car?

No, you don’t need car insurance to sign for a rental car insurance policy. However, you have to be at least 21 years old, present a valid driver's license, and will need a credit card to pay for the rental vehicle.

Does my credit card cover car rental insurance?

Each bank and credit card provider offers something different but most credit cards provide insurance in the form of collision coverage. If your credit card offers adequate protection, you can safely decline the collision damage waiver or similar auto rental collision loss damage insurance offered by the rental company.

Coverage on most credit cards is secondary, which means the card picks up only what you can’t first recover from your own insurance. Some premium credit cards, usually the ones with an annual fee, offer primary collision coverage, which means the card takes full responsibility for the payment.

In all cases, you still have to pay the rental company upfront, then file for reimbursement from your card issuer. Typically, you only have 48 hours to make a claim for damage, loss or theft.

For the coverage to be applicable, the cardholder must use the credit card in question to pay for the rental vehicle.

If you get into an accident, there may be additional fees from the rental car company for the loss of use of their rental vehicle that your credit card provider won’t cover.

If you plan to use insurance for your rental vehicle through your credit card, call the company ahead of time to make sure you’re aware of the limits and have adequate coverage.

How to save money on rental car insurance?

Before you rent a car, always check with your agent or broker, or even directly with the insurance company, to see what level of coverage you have. This will give you the best idea of the coverage you need and how much it will cost to get rental car insurance.

For discounts on rental car insurance we suggest:

  • Skipping the rental car company’s insurance if you have adequate coverage through your personal policy.
  • Shopping around rental car companies to compare rental car insurance quotes.
  • Opting for the economy car versus luxury cars that have high replacement value.
Zandile Chiwanza

Zandile Chiwanza

About the Author

Zandile is a Personal Finance Writer at LowestRates.ca. Before joining the team Zandile worked as the content editor for Real Estate Management Industry News. As a self-proclaimed budget warrior, Zandile dedicates most of her time to advocating for financial wellness.

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