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.
Or are you? Not necessarily. A majority of people that own vehicles already pay for full coverage insurance. In most cases, full coverage insurance covers the policy holder in any vehicle that they drive, including rental cars. Check with your auto insurance agent to see if rental cars are covered by your policy and what deductibles or coverage you should expect if you are involved in an accident.
If you chose to use your own insurance and were involved in an accident that was ruled to be your fault, you will go through your insurance company rather than the rental car insurance company, which may be a lot less hassle for you. However, going through your insurance company also means that your policy premium will go up. Your insurance company may have a higher deductible for rental cars than your standard policy. Additionally, the rental car company will probably charge all repairs to your credit card and you will be responsible for getting the reimbursement from your insurance company.
Getting insurance from the rental company may prevent some of these problems. If you use the rental car insurance, your insurance premium will not go up. Also, you will not need to pay a deductible or worry about the car rental company charging your credit card for any bills. The car rental company will simply take care of everything.
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.
It will be important for you to determine if rental Ontario auto insurance is what you really want. If you are traveling to an unfamiliar area with different laws, weather, and more traffic, you are statistically at a higher risk of having an accident. You may be more likely to accept rental insurance in a case like this. Additionally, a majority of personal insurance companies will not provide coverage 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.
When you rent a car, be sure that you make an informed decision to whether or not you will accept rental car insurance. Whether you choose to get insurance through the rental company, your insurance company, or rely on the credit card company, it could end up saving or costing you considerable amounts of money in the event that you are at fault for an accident in the rental car. Next time you rent a car, do not take the decision 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!
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