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Why Do You Need Rental Car Insurance?

Sep 28, 2020 2 minute read

Why Do You Need Rental Car Insurance?

Over 160,000 car accidents occur in Canada each year.

Even if you are a safe driver, accidents happen. Are you covered if an accident occurs?

Many drivers aren't sure what to do when it comes to purchasing rental car insurance. The truth is, not everyone needs the extra coverage.

Keep reading to learn more about why you need rental car insurance.

Reasons You Might Need Rental Car Insurance

Rental car insurance offers protection to the car you are driving and other property you might damage while driving it. What most people don't know is that you probably already have coverage through your personal auto policy.

Purchasing additional rental coverage might be unnecessary.

However, there are a handful of situations where it's totally worth it to purchase the extra insurance. Let's take a look at these scenarios in more detail.

Your Insurance is Insufficient

Perhaps the biggest reason you might need rental car insurance is that your personal policy won't provide sufficient coverage.

Of course, if you don't have insurance at all, you need to purchase rental car insurance, including liability coverage. If you do have a personal auto policy but your deductibles are high or you don't have both collision and comprehensive coverage, you might want to purchase a rental policy.

You're Driving in A Foreign Country

If you are driving a rental car in another country, your regular insurance might not cover you. You might have some coverage if you have a credit card, but many popular tourist destinations are excluded from coverage.

Do your research beforehand to make sure you aren't driving uninsured.

You're Driving For Business

If you're traveling for business and driving a rental car, your personal auto policy might not provide coverage. Chances are, there is an exclusion for business use.

Always check to make sure you have coverage through your employer. If not, you might need to purchase car rental insurance yourself.

You're Worried About a Rate Increase

Are you worried about your insurance rates going up from an accident? This is always a risk when using your personal auto policy. If you're truly worried, you can purchase rental car insurance and your rates won't be affected.

You Want Peace of Mind

For many people, knowing they don't have to worry if an accident occurs is reason enough to purchase rental car insurance.

Insurance can be confusing. The small extra cost is often worth the peace of mind, especially if you're traveling for fun.

Do You Need Rental Car Insurance?

If you're driving a rental car, you should be sure you have insurance in place. If your personal auto insurance isn't enough or one of the above-described scenarios describes your circumstances, it's better to be safe than sorry.

BrokerLink provides options for all your insurance needs, including rental car insurance.

To get a quote, try our online quote tool, or contact one of our local brokerages.

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