Does My Car Insurance Cover A Rental Car?

An accident in any vehicle can be costly – that goes double for rented vehicles. When you’re involved in an accident while driving a rental car, you may face:

• Liability claims
• The cost to repair the rental vehicle
• Down-time charges levied by the rental company
• The cost of renting a new vehicle

The right insurance can help you protect yourself while driving a rental car. In this article, we cover:

• How Manitoba Public Insurance’s (MPI) Autopac coverage protects you in rental vehicles registered and insured in Manitoba, and in vehicles outside of Manitoba
• MPI’s Rental Vehicle Insurance policy – which can be used for rental vehicles both inside and outside of Manitoba
• Other coverage options
• How to ensure you have enough insurance
• And more

That’s a lot of ground to cover, so let’s dive right in:

When And How Your Car Insurance Covers A Rental Car

Your Autopac coverage offers different protections depending on whether you’re driving a car registered and insured in Manitoba or not. Here’s how it works:

• When renting a vehicle registered and insured in Manitoba, that vehicle’s Basic Autopac insurance covers you if you have a valid driver’s licence; you are also covered by the liability insurance on the rental vehicle (usually $500,000). You are responsible for the deductible of that vehicle (usually $750). You are also covered by the Personal Injury Protection Plan (PIPP).
• When renting a vehicle registered and insured outside of Manitoba, only your liability coverage protects you, and only if you are driving within Canada or the United States. You are also covered by the PIPP.

Your basic car insurance coverage does not protect you from downtime charges from the rental company; it also does not cover the cost of renting a new vehicle. Additionally, the basic $500,000 liability insurance on most policies might not be enough to cover liability claims, especially in the United States.

Fortunately, MPI offers Rental Vehicle Insurance policies. In the next section, we examine that coverage, as well as other coverage options for rental vehicles:

What Rental Car Insurance Options Are Available?

Manitoba Public Insurance Rental Vehicle Insurance

The rental insurance policies offered by MPI are an excellent option for most Manitobans; they provide broad coverage at affordable rates. Here’s how it works:

• Covers rented or borrowed private passenger vehicles, light trucks, motorcycles, and mopeds in Canada or the United States
• $5 million of liability coverage
• $100,000 of coverage for damage to vehicles rented outside of Manitoba
• Daily allowances payable for downtime charges and the cost of replacement vehicles (subject to daily limits)
• Coverage periods from 3 to 90 days
• $200 deductible on damage to the rental vehicle (meaning you only pay $200 if the rental vehicle is damaged)

This coverage is excellent; low deductibles, incredible liability coverage, and enough coverage for damage to the rental vehicle that you should be able to cover even total wrecks of most vehicles. The price for the coverage is also exceptional. Prices depend on where the vehicle is rented:

Manitoba: $3 a day
Canada: $8 a day
United States: $10 a day

In addition to these daily fees, a $15 policy fee applies to all rental vehicle insurance.

The low deductibles, high liability coverage, and coverage for down-time charges and replacement vehicles can even make the Manitoban coverage worthwhile, even though your existing insurance policy (and the vehicle’s insurance policy) provides some coverage already.

Types Of Rental Coverage Offered By Rental Companies

Depending on where you rent your vehicle and which company you rent from, your rental car company may offer a wide variety of different coverages for your vehicle. These coverages include:

• Damage waivers that waive part or all of your liability for damage, loss, or theft of the vehicle
• Supplemental liability insurance to boost the liability protection on the vehicle
• Personal item insurance to protect your belongings in the vehicle

Typically, purchasing damage waivers and liability insurance will cost more than MPI’s Rental Vehicle Insurance; in many cases, even purchasing damage waivers alone can cost more than MPI’s coverage.

Notably, MPI does not offer personal item insurance; typically, this is obtained through home insurance or tenant insurance policies. Contact us to learn how your current home or tenant insurance policy can cover your personal belongings.

Credit Card Rental Car Insurance – Does It Apply?

Many credit cards offer rental vehicle insurance to their cardholders; unfortunately, this insurance often comes with several restrictions, and coverage may be limited. Credit card rental car insurance may not:

• Cover all types of vehicles
• Cover you if your vehicle is over a certain value
• Provide liability insurance
• Provide personal injury insurance

Additionally, policies may come with deductibles, restrictions on use, and more. We highly recommend reviewing your credit card insurance in detail; don’t rely on it when renting a vehicle unless you know that you’re well covered

Do You Need Extra Insurance For A Rental Car?

Typically, yes. You’ll often be underinsured in a rental car if you do not purchase additional insurance.

Tips To Ensure You’re Covered When Renting A Car

To ensure that you have enough insurance when driving a rental car, you should:

• Ensure that your personal car insurance is up-to-date.
• Review the options for rental car insurance coverage offered by MPI, your credit card company, and the rental car company.
• Confirm the dates that you’ll be using your rental car.
• Ensure that the insurance policy and the rental agreement are both in the same name.
• Keep in mind that insurance is typically limited to Canada and the United States.

By following these tips, you can make sure you have the right insurance for your next trip.

Steps To Check Your Policy Before Renting

When reviewing your insurance policy, check:

• The level of coverage provided for the vehicle
• The level of third-party liability coverage provided
• That the policy is in the same name as the person on the rental agreement
• That the policy provides coverage for the entire period of time during which you will be driving the rental vehicle
• That the type of vehicle being rented is covered by the policy
• Any exclusions on the policy that you should be aware of (for example, MPI’s Rental Vehicle Insurance does not cover vehicles used for business deliveries)

Notably, MPI’s Rental Vehicle Insurance covers the policyholder and any driver who is qualified and authorized by law and has the policyholder’s permission to drive the rental vehicle; not all drivers need to be listed on the policy.

Questions To Ask Your Insurance Provider Or Broker

There are a few simple questions you can ask your insurance broker to get the most out of your rental car insurance policy:

• What does this insurance cover?
• How much does it cover?
• What is the cost of the insurance?
• What are the exclusions on the policy?
• What rules do I have to follow to stay insured?
• How do I make a claim?
• Is there anything else I need to know?

Common Mistakes To Avoid With Rental Coverage

There are a few mistakes you should absolutely avoid when renting a car:

• Assuming that your Autopac coverage is enough
• Assuming that your credit card coverage is enough
• Not reviewing policies before getting your rental car
• Not purchasing a policy that provides coverage for a long enough period of time
• Using the rental vehicle for uses that are forbidden by the policy
• Assuming that your auto insurance policy works like a health insurance policy

That last point is particularly important; if you’re in an accident and you have medical bills, it is unlikely that your insurance policy will cover them. Even if the other driver has liability insurance and you have PIPP, travel health insurance can expedite the process of paying for medical care

Related Insurance Products We Offer

Auto Insurance
Travel Insurance
Home Insurance
Rental Property Insurance
Critical Illness

Still Unsure? Let’s Help You Decide

We can help you review all of your existing insurance policies, and even the policies offered by rental car agencies, to help you determine which type of rental car insurance is right for you. For insurance Winnipeg has trusted for years, choose Nation West!