Renting a car is a smart choice when your car is away for repairs or maintenance or when you cannot afford to buy a car yet. However, the driver’s and the car’s safety is equally essential. Unfortunate incidents come announced, and you must always remain prepared to deal with them. Insurance provides coverage for the damage or loss caused by damage.
If you are looking forward to getting a car on rent, you should know about rental car insurance. It provides similar advantages as a standard auto insurance policy. You can learn more about it at https://www.surex.com/Insurance/auto-car/edmonton. Surex is one of the leading insurance brokers providing multiple insurance quotes tailored to your needs.
What is rental car insurance and why is it important for drivers in Alberta?
Rental car insurance covers the driver, rental vehicle, personal belongings of the driver, and fellow passengers. In addition, it also provides cover for the expenses and damages caused by another person’s vehicle. The coverage of rental car insurance in Alberta depends on the rental company’s geographical location and policies.
Most rental companies only have minimum insurance in place, which might not be enough to bail you out financially in the case of an accident. Hence, getting rental car insurance makes more sense.
Major reasons for purchasing rental car insurance in Alberta
Read on to find out why insuring a rental car is worth it.
1. Liability coverage
Liability coverage protects the policyholder (car driver) from injury caused to another party or someone damaging their property. It saves the individual from the burden of expenses that occur as a consequence of the accident. However, if your auto insurance provides sufficient liability coverage, there is no need to invest in rental car insurance coverage. You may discuss your liability limit with your insurance broker and check your needs.
2. Personal belongings coverage
Personal belonging or personal effects coverage provides cover for the individual’s personal belongings, including their clothing or laptop. If they get stolen from the rented vehicle, you can have the cost recovered through the insurance policy. In such cases, you can also reap the benefits of personal property insurance featured in homeowner’s or renter’s insurance. The procedure typically states “off-premises coverage” for personal items.
Generally, off-premise items are covered up to a specific limit. The appropriate deductible amount shall apply to your renters or homeowners insurance using that limit. It is always best to get rental car insurance separately for full coverage.
3. Loss/damage waiver due to collision
A loss damage waiver or collision damage waiver helps cover the repair cost of a rented vehicle in case it gets damaged in an accident. However, it doesn’t provide cover for the damage that occurred to the car by driving on unpaved roads or due to speeding.
If your existing car coverage includes comprehensive or collision damage, you may use it to waive the cost of injuries. But if your current policy doesn’t cover these damages and you don’t have the waiver, you may end up paying for the damages from your pocket. So when you sign up for the rented car, check your existing insurance policy and get rented car insurance accordingly.
4. Personal accident insurance
It provides cover for the medical bills for the driver’s and fellow passengers’ injuries in a rental car accident. If your current car insurance facilitates personal injury protection, medical payments coverage, or health insurance, you may get equivalent coverage to rental car insurance.
You may get deductions from your car insurance or purchase new insurance for a rented car. Also, every insurer doesn’t have personal injury coverage and medical payments protection for the rented vehicle. Hence, checking with your insurance broker before getting the insurance is essential.
Who needs rental car insurance in Alberta?
It is an ideal option if you rent an expensive car because, without the cover, you’ll end up paying for the damages from your pocket.
However, suppose your current car insurance provides sufficient rental car coverage, or you have a credit card or personal auto insurance policy. In that case, you may not need car rental insurance in Alberta.
Buying rental car insurance is a perfect option under the following conditions.
- The credit card of the driver doesn’t provide coverage for the rental car
- The car renter doesn’t have a car insurance policy
- The driver is considered high-risk and can’t afford to claim the risk
- The car insurance policy of the driver doesn’t feature the proper endorsement for the rental vehicle
- The rented car will be used to travel for business, and the car renter will pay the insurance
- The rented vehicle is a truck, sports car, or a luxury car
- The auto insurance coverage of the driver doesn’t provide the required limit
- The driver isn’t covered by their standard auto insurance
It is advised to examine your situation when deciding whether or not you should sign up for rental car insurance. Also, evaluate your current coverage (if you have any) to choose insurance of the right amount. If your car credit card or standard car insurance policy covers your rental car coverage, it’s not wise to have extra coverage.
Generally, the insurance costs $65 a day, depending on the protection type and location. Make sure to compare the prices from different insurance providers to get the best value for money.
Rental car insurance Alberta — Endnote
Rental car insurance is a good idea if the rented vehicle is expensive or you are looking forward to additional coverage. In Alberta, drivers must carry insurance when driving. So getting temporary coverage is an excellent option if you rent a vehicle.
Fortunately, several rental car insurance companies in Alberta provide the right cover for rented vehicles. You can contact an insurance broker or get the policy from the rental car company. Alternatively, check with your insurer to determine whether your current policy covers rentals. It is best to rely on reputed online insurance brokerages that offer services in Alberta, who can help you identify your needs.
