Car Insurance

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.

If you were involved in an accident with the rental car, you will have to make sure it gets repaired or replaced. If you opt out of the rental company insurance, you may or may not be covered by your auto insurance policy. If you maintain full coverage on your own vehicle, the chances are pretty good that your insurance company will also cover a rental vehicle. However, they may have different coverages and deductibles, so you will have to contact your insurance company or check their terms and conditions.

When choosing to use your own insurance, be aware that there are pros and cons to using them. The advantages are that you will be able to deal with your own agents which may be less of a hassle for you. On the downside, using your own company means that your premium will probably increase. Also, in most cases the rental car company will charge your credit card for repairs and you will be accountable for coordinating reimbursement from your auto insurance company.

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 final option that you may have is protection from fees provided by a credit card company. Many people do not know it, but several major credit card companies offer damage and theft insurance coverage if you used their card to rent a vehicle. However, they do not typically offer coverage for bodily injury or property damage. You will need to contact your credit card company or read the terms and conditions provided by them.

Regardless of what option you choose, they each have their advantages and disadvantages. Based on your individual circumstances you will have to choose which option is best for you: rental car insurance, personal insurance coverage, or using your credit card. Whichever you choose, it should not be a decision that you make lightly.

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!