The next time you rent a car, you will be faced with a question that is asked of everyone who rents cars have to answer: do you want rental car insurance? Even if you decline their coverage, they will oftentimes try to convince you to buy their insurance.
You may see this as a waste of money, but it may not necessarily be. However, if you waive the insurance, you will be responsible for damages to the rental car.
So, are you really fully responsible for the car if you get into an accident? Maybe not; if you have full coverage, the chances are pretty good that you insurance company also covers rental cars. You should check with your insurance company to see what they cover in your policy and the stipulations of that coverage. They may have different coverages and deductibles for rental cars than your own car.
If you do have an accident while driving a rental vehicle and you opted to use your personal insurance, you will file a claim through your insurance company. You will have to initiate the process, but you will be working with your own company rather than rental car insurance company. However, if you are found to be at fault, your insurance policy rate will go up.
Some insurance companies have higher deductibles for rental vehicles than for your own personal vehicle. You will not have a choice where the car is repaired or replaced and the car rental place will typically charge all repairs to your credit card. It will be up to you to go through your insurance company to get reimbursed, less the deductible.
If you choose to use rental car insurance, you will save yourself a lot of dilemmas of using your own. Firstly, your personal insurance rate will not go up if you are involved in an accident and you were found to be at fault. Additionally, with a rental insurance policy, you will not have to pay a deductible.
The major downside to rental car insurance is cost. It is typically very expensive, sometimes costing more than the actual rental. Your insurance company bases its rates on statistics about drivers similar to you and your record, but car rental companies have flat rates to cover everyone from great drivers to horrible ones. Rental Ontario auto insurance is usually calculated daily, so even short rental periods can rack up large bills. You will have to determine if you want to pay for it. Paying the daily rate may end up being substantially cheaper than paying a deductible.
A couple of things that you should consider about getting rental insurance are determining your risk of an accident and where you will be driving. You may be at a higher risk of an accident if you are driving somewhere that is completely new to you. A location that has different laws, more traffic, or bad weather conditions may be enticing reasons to lean toward rental insurance. Additionally, many personal Ontario auto insurance companies will not pay for claims from accidents that occur in foreign countries.
One last option that you may be able to consider is the use of your credit card company for insurance. Some major credit card companies provide limited protection on rental car losses. On the contrary, they will not cover property damage or injuries sustained in the accident. Be sure to thoroughly be familiar with the terms and conditions of your credit card company before choosing this option.
If you are going to rent a car, it is certain that they will try to persuade you to get rental car insurance. Having all of the information about the type of coverages that are available to you from them, your insurance, or the credit card company will ensure that you can choose the best coverage for you.
Everyone faces car trouble at one point or another – luckily, Ontario Roadside Assistance is there to provide you with the services you need. From Ontario Car Insurance to other essential services provided, you’re always covered!