OUR TRIP WOULD BE PERFECT, IF IT WERE NOT FOR THAT CAR ACCIDENT…
Traveling and unexpected events go hand in hand. If all of life’s surprises were pleasant, everything would be great. It is common to rent a car on a weekend trip with friends in North America. However, it is not uncommon for mishaps to occur with even the most experienced of us. While it is sad and unfortunate that they happen, driving in a foreign territory or city can be more distracting than listening to your favorite music on Monday mornings on the commute to work. You may assume that your credit card covers car accidents insurance until you are in an accident. Today I will be discussing Rental Car Protection, which is offered by credit cards. It will also reveal important information that can help you next time you rent a car.
HOW DO I FIND IT?
Nearly 80 Canadian credit cards have the Rental Car Protection feature. Given that the average Canadian has more than 3 credit cards, there are high chances you already have this protection.
CREDIT CURB RENTAL CAR PROTECTION – WHAT IS ACTUALLY COOVERED?
You should consider these four things when you use a rental car insurance policy offered by your credit card.
- There are many risks that these cards do not cover. The majority of these cards only protect you in the event of collision damage. Your LIABILITY (i.e. BODILY DAMAGES or damages to third parties are not covered by any of the cards. This means that you will have to pay for all damages caused by your car hitting another person’s home. If the government does not cover it, the same applies to medical treatment.
- Not all vehicles covered. If you are looking to cover exotic or ‘fun’ vehicles, this type of insurance does not cover them. This includes motorbikes and snowmobiles as well as off-road vehicles like ATVs and ATVs. Mini-vans are not covered if they are used for people transport only. They also don’t cover you if they are being used as cargo vehicles.
- Avoid sports and luxury vehicles: Rent car protection insurance doesn’t like expensive cars. The cut-off for most policies is $65,000, and some AmEx cards only have an $85,000 limit. There is no coverage if you wreck a Ferrari on a weekend getaway.
- Time and place: Pay attention to the rental period. While a few weeks should not be a problem, most cards won’t cover more than 31 to 48 days. It is also important to consider your location abroad. While most cards are fine with the United States, some may have problems paying for damage in Europe or Asia. You will need to confirm this in advance. The most important thing, at the risk of repeating the obvious: Make sure you pay for the rental car using a credit card with protection. You will need to confirm that the rental fee was charged to that card.
ALTERNATIVES FOR INCREASING YOUR PROTECTION
There is an alternative if you don’t feel you need as much protection as your credit cards offer or you don’t want to pay $15-20 per day for a collision waiver from a rental agency. This is your car insurance. Additional protections (insurance jargon : riders) are offered by many providers to protect your rental car. This may add $30 to your annual premium. It is essential to choose the right protection. We recommend that you choose one that covers all three critical aspects: Injuries, Damages, and Third Party Liability.
This protection is typically provided for your car. It shouldn’t be any different when renting a vehicle. Enjoy a safe trip on the road!
