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August 4
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August 4
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Linda RitaOlivier
August 3
They respond very quickly
They respond very quickly. They are very understandable. The representative I sp...
Nuwara47
August 3
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They help and did a great job assisting in new insurance
Serena MarieCasto
August 2
The agent name, Justin Farr
The agent name, Justin F. was very helpful, kind, and patient. I will surely get...
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August 2
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August 2
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Nadeem Sheikh
July 30
Good experience was pretty quick
Good experience was pretty quick
Grant W.Murray
July 29
The agent was friendly
The agent was friendly, helpful and polite. All in all a good experience.
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July 29
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The gentleman I spoke with, Steve Chajka, was very polite and professional in he...
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July 29
Extremely simple
Extremely simple, and fast process.
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July 26
excellent
excellent, professional service
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July 23
Very kind and helpful
Very kind and helpful
April Shannon
July 22
Easy to find easy to use website which…
Easy to find easy to use website which provided me with options.
Randall McLellan
July 22
Excellent service
Excellent service
Sven Zorz
July 21
Car & Home Insurance Savings!
CAA agent Tim Gulley contacted me and we had a great connection. So we are in th...
Jim McIntosh
July 21
They were great
They were great
ChristinaLain
July 21
Looking for insurance for my new…
Looking for insurance for my new vehicle got a respond and quote the same day wi...
SB
July 21
Fast response to get my quote for car…
Fast response to get my quote for car insurance back.
gary hoy
July 21
Excellent pricing
Excellent pricing
pankaj joshi
July 20
Great experience
I was contacted on my cell right away after the quote was done. That is very goo...
Rubaet TIslam
July 20
Wanted to shop around
Wanted to do a check for my recent insurance quote from an existing provider. Ke...
RANDALL MCKENNA
July 20
Auto quote
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Jonathan Vea Cabading
July 19
I could compare charges from various…
I could compare charges from various policy providers. Navigation was plain and ...
Anup Dubey
July 18
Very quick reliable and easy to…
Very quick reliable and easy to understand took the time to compare other compan...
Brandon A
July 15
I am trying to find a better car…
I am trying to find a better car insurance but apparently didn't get one. But it...
Rey Salugsugan
July 13
Best experience!!
Fast and wonderful service. Called me within seconds of my submitting my online ...
Brooke Bouchard

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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.

Front view of a car. Illustration.

See how our customers save big on auto insurance.

CustomerLocationVehicleLowest rateAverage rateSaved
Quote from August 07, 2022
Customer
Male, 19 years old
Location
ontario
Vehicle
2016 FORD FIESTA ST 5DR
Lowest Rate
$301/mth
$3,612/yr
Average Rate
$515/mth
$6,178/yr
Saved
$214/mth
41.53%
Quote from August 07, 2022
Customer
Female, 52 years old
Location
ontario
Vehicle
2021 HONDA CIVIC EX 4DR
Lowest Rate
$182/mth
$2,180/yr
Average Rate
$287/mth
$3,446/yr
Saved
$106/mth
36.74%

Your questions about rental auto insurance, answered.

What is rental car insurance?

Rental auto insurance covers drivers for any damage to a rental car as well as theft and bodily injury.

Rental car insurance coverage isn’t mandatory if you already have your own personal auto insurance policy 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 likely extends 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 before you rent a car.  However, in order to operate a car in Canada, the vehicle must be insured. You also 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 can I 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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