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(NC)-Canadians renting an automobile may experience confusion about the insurance coverage. Before you leave home, says the Financial Services Commission of Ontario (FSCO), it is important to familiarize yourself with some of the alternatives to the insurance offered by the rental company. Here are the main choices:
Your Current Auto Insurance Policy:
Most Ontario automobile insurance companies offer an option for additional coverage on automobiles not owned by the policy holder. If your policy includes the OPCF 27 (the Rental Vehicle Insurance Endorsement) you are likely covered for rentals in Canada and the United States.
OPCF 27 does not insure your rental overseas so other coverage will need to be purchased. There are other terms too, so be sure to get all the details from your broker, agent or company representative.
Rental Company Insurance:
Most auto rental companies offer a product called a collision damage waiver (CDW) to cover some loss of, or damage to, the rental automobile. The CDW protects you by transferring the responsibility for the cost of the damage from you to the auto rental company. The CDW is charged at a daily rate and usually comes with exclusions, or a list of non-insured circumstances. Protection varies from company to company so be sure to read all the terms.
Credit Card Insurance:
Your credit card may already provide collision damage coverage on rented vehicles. To be eligible for the coverage you will likely need to charge the full amount of the rental to your credit card, and also decline the CDW offered by the auto rental company. Credit card coverage is subject to certain conditions, so ask the financial institution what they are.
The bottom line is that if you are not adequately insured, you will be responsible for the costs resulting from any at-fault damage to the automobile while it is in your care. More information on this subject, including the brochure Protecting Yourself When Renting An Automobile is available online at www.fsco.gov.on.ca. The Financial Services Commission of Ontario (FSCO) is the agency responsible for regulating insurance in the province.