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How to know you have the right insurance coverage when renting a car or RV

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Insurance when renting a car or RV
WATCH: Global News Calgary's Tony Tighe talks about how insurance works when you rent a car or RV in Canada – Jul 11, 2018

When renting a vehicle a common concern is the worry of knowing whether you’re covered for damages if an accident were to happen.

According to Pam Murray from the Alberta Motor Association, there’s no guarantee you’ill be covered just because you have auto insurance.

Auto insurance typically covers personal liability or injury but not everyone has coverage for rental car collision or damage.

However, there are a couple options available to make sure you are safe while you travel.

Most rental companies will offer extra insurance called the optional collision damage or loss damage waiver and it can range from $10 to $30 a day. But if it is covered under your auto insurance, you don’t need to take it.

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Another option is called a rental rider, which is only a few dollars a month. A third option is to get a one-time rental policy through a travel agent. The one-time rental policy is typically best if you don’t rent cars often.

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“If you’re renting a number of cars throughout the year, then from a cost perspective, having that rider is a good value for the year,” Murray said. “So I think it’s a flat $30 a year.

“But you need to realize there is a deductible on that plan, there’s also, it’s going to affect your auto premium should you have an accident for that,” said Murray.

Credit cards also often include insurance coverage but according to AMA, you need to be careful because different cards will offer different coverage and restrictions.

Murray said it’s best to check with your insurance company before you head on your vacation to make sure everything you have everything in order.

When renting an RV however, your own auto policy won’t apply and you will need to get additional coverage from the rental company.

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