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June 24
He answered all my questions
He answered all my questions
Marcia Atkins
June 24
Mark was very helpful
Mark was very helpful
Liloutie Jairam
June 22
Got all the answers I needed
Answer all my questions and the the knowledge of the agent regarding my question...
Abbas Negravi
June 20
Advised
Quick responses with a great attitude.
ABDALQADERTK ALZUBAIDI
June 20
Good
Good rates using
Sharma
June 19
Good conversation finding best rates .
Good conversation finding best rates .
Wanda Smith
June 18
- overall good info
- pleasant knowledgeable person giving info - had to wait a bit for some 'consul...
Carman Holbrook
June 18
I wanted a cheaper rate being I'm a…
I wanted a cheaper rate being I'm a senior and a widow
Diane Bardeau
June 14
Pleasant
Pleasant, calm up to the point conversation, simple question. Thank you
Zdzislaw Waga
June 14
Your response is quick ang i got my…
Your response is quick ang i got my quote on time
Horace Delosreyes
June 12
Quick response and was able to connect…
Quick response and was able to connect me with a broker rather quickly...well do...
unknown
June 11
Spoke with Gord Allen he answered all…
Spoke with Gord Allen he answered all my questions.
Patty Bryans
June 10
Fast process.I got a call just in…
Fast process.I got a call just in minutes
Zoltan gal
June 10
The service was quick and convenient.
The service was quick and convenient.
Eddy
June 8
GOO RATE GOOD RECEPTION
GOO RATE GOOD RECEPTION
LUKE KUMAR
June 2
Great customer service!
Great customer service!
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May 23
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May 15
The Hope of a more cost saving policy
The Hope of a more cost saving policy
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May 14
They went through the insurance…
They went through the insurance information with me , and allowed me to save hun...
Kevin Jessome
May 5
I was so impressed with your…
I was so impressed with your representative- Bhakti Joshi for her help in walkin...
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May 5
The fellows were very friendly and…
The fellows were very friendly and helpful
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May 4
Very Helpful when time you need it
I have been using lowest rate.ca to find the best raye for any of my insurance a...
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April 19
Sean was easy to talk too and very…
Sean was easy to talk too and very informative.
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April 12
fast responce
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Larry Rowthorn
April 6
Easy and friendly process.
Easy and friendly process.
shr
April 5
Very good service.
Very good service.
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March 30
easy to work with…
easy to work with and find what I needed fast.
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March 25
Immediate response
Immediate response
Donald Henderson

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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 with collision coverage save big on auto insurance.

CustomerLocationVehicleLowest rateAverage rateSaved
Quote from June 24, 2024
Customer
Female, 80 years old
Location
ontario
Vehicle
2016 DODGE/RAM RAM 1500 ST QUAD CAB 4WD
Lowest Rate
$77/mth
$926/yr
Average Rate
$92/mth
$1,108/yr
Saved
$15/mth
16.43%
Quote from June 24, 2024
Customer
Male, 29 years old
Location
ontario
Vehicle
2002 CHEVROLET SILVERADO 1500 LS EXT CAB 4WD
Lowest Rate
$223/mth
$2,676/yr
Average Rate
$312/mth
$3,743/yr
Saved
$89/mth
28.51%
Quote from June 24, 2024
Customer
Female, 20 years old
Location
ontario
Vehicle
2020 FORD ESCAPE S 4DR 2WD
Lowest Rate
$280/mth
$3,363/yr
Average Rate
$440/mth
$5,282/yr
Saved
$160/mth
36.33%

Auto insurance quotes are compared from CAA, Coachman Insurance Company, Economical Insurance, Gore Mutual, Onlia Insurance, Pafco, Pembridge, SGI, Travelers, Zenith Insurance Company

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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