Excalibur Insurance
Rental Car Insurance

Rental Car Insurance & Your Winter Vacation

October 19, 2021


Aaaaaah. Vacation. White beach. Blue water. Colourful drinks with little paper umbrellas. New sights, new sounds, new smells…Maybe you’ll rent a car and explore? Or maybe you won’t.

Whether you’re heading north or south, east or west, and whether you prefer action-packed or easy-going, it can be easy to forget that unpleasant things still happen on vacation, even while you are trying to get away from it all.

Invest an hour in some preparation to set yourself up for true peace of mind with the Excalibur Insurance Group. Read on for a few thoughts you may want to mull over as you are in the planning stages of your trip and, of course, don’t hesitate to give us a call if you have any questions.

Rental Car Considerations:

Thinking of getting a rental car? Do you have the correct coverage on your existing auto policy? Should you purchase rental car coverage?

Consider the following situation: there you are, just off the plane, at the rental car counter. From the plane, you’ve already seen the incredible color of the water… turquoise-blue, and crystal clear. Crowned by little tufts of foam. Framed by white beaches. As you walk to baggage-claim, you peek out the window and see palm trees swaying in a gentle breeze. How exciting! The only thing that lies between you and two weeks of peace of mind is one last signature on one more sheet of paper.

Then, the question comes: “Would you like to purchase the insurance for your rental car?” Well, no. Or yes? It can be confusing. Doesn’t your credit card provide coverage for rental cars? Besides – you already have auto insurance. For your car at home, that is, but doesn’t that count as well? But from what you’ve heard, they are all driving fast and furious here. It might be smart to buy extra insurance…so, yes. Except…you have already spent so much on your vacation. Ah, shucks! Now what?

What to Know About Your Existing Auto Policy:

Most Ontario auto insurance companies offer the option of additional coverage for liability for damage to automobiles that you don’t own. The coverage comes in the form of an endorsement known as “Legal Liability for Damage to Non-Owned Automobiles.” It is also referred to as the “Rental Vehicle Insurance Endorsement” or “OPCF 27.”

If your auto insurance policy includes the OPCF 27, you already have coverage for damage to a vehicle that you don’t own, such as a rental automobile.

A note of caution — the OPCF 27 is only valid for driving non-owned automobiles in Canada and the United States. If you are driving internationally, you will have to purchase coverage elsewhere. Also, the auto rental agreement must be in your name, if you are the insured person named on the auto policy.

Curious about this extended coverage, or not sure if you need it? Call Excalibur Insurance Group today.

Reasonable Cost

If your auto insurance policy does not include the OPCF 27, you may want to consider adding it – especially if your yearly or bi-yearly getaway is a recurrent thing. The yearly cost of adding it to your policy is usually quite reasonable, making it an economical alternative to purchasing a collision damage waiver offered by an auto rental company.

Keep in mind, however, that if you have an at-fault accident with the rented automobile, and you are more than 25% per cent at fault, the accident will still count against your driving record, regardless of who pays the damage claim.

No Collision Damage Waiver

If you are not already covered under your Ontario auto insurance policy, through your credit card, or otherwise, and you choose NOT to purchase the collision damage waiver from the auto rental company, you will be responsible for the costs resulting from any at-fault damage to the automobile while it is in your care.

When it comes to vacationing, you want your trip to be as worry-free as possible. Forget the rental car for a moment – what if something unexpected happened on your trip? Say you, your spouse, or your child lost their phone, or another expensive belonging. What would you do?

Your home insurance may offer you the coverage you need. Discuss with your Excalibur Insurance Group Defender about how homeowner’s insurance can offer coverage while you are away on vacation. Give us a call at 1-888-298-7343