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Will my Car Insurance Cover Rental Cars?

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You're almost ready to go on vacation. You're packed, and your flights are confirmed. You got a great rate on your car rental vehicle. The question is, do you need to buy the extra insurance from the car rental agency? You know they are going to hand you a contract full of small print and confusing options and you won't know what you need or don't need.

Here is some basic information that will apply to your CAA PlatesPLUS Package Policy and likely most other insurance programs in the Province. We strongly recommend that you check with your Insurance Consultant if you are insured outside of CAA Saskatchewan.

Will my plate Insurance cover me if I am in an accident with a Rental Vehicle on vacation?

The answer is NO. Your plates cover your vehicle in an accident and your liability covers damages your vehicle may cause in an accident. If you don't have a package policy on your vehicle you should contact your nearest CAA Insurance Consultant or purchase the insurance from the Car Rental Agency.

What about my Credit Card, won't it look after the insurance?

Maybe, maybe not. You should carefully review you most current contract with your credit card vendor to ensure you know and understand what they cover, if there are limitations and how to make a claim. Our best advice is to call them and ask specifically about their coverage for damage to the vehicle and third party liability to ensure you have the coverage you need.

Will my package policy through CAA Saskatchewan cover my rental vehicle while on holidays?

Yes, most of the time. If you carry comprehensive and collision coverage on your owned vehicle it will transfer to your rental car under most conditions.

  • You must be renting a vehicle in Canada or the U.S. If not you should purchase from the rental agency as your PlatesPLUS policy will not extend.
  • You must rent a vehicle similar in style and value to your personal car.
  • If you carry adequate liability insurance on your own vehicle it will transfer with you to another Vehicle you borrow or rent.

Will my personal belongings be covered by my policy while on vacation?

Your package policy will not insure your belongings if lost or stolen from the rental vehicle. However, your home, condo or tenant insurance policy will generally cover your property. Review your policy or contact your agent to be sure. A deductible may apply.

What is a Collision Damage Waiver (CDW)?

This is not an insurance product but rather a waiver that transfers the financial responsibility from you to the rental car company in case of damages or theft. Often the waiver will include downtime charges that may be applied.

What is Downtime?

If you are in an accident with a rental vehicle, the rental company may charge your credit card for the days that the vehicle is being repaired and cannot be rented. This is typically the daily rental fee.

Will my CAA PlatesPLUS Package Policy cover Downtime charges?

If you are transferring your coverage from your own vehicle policy you will not have downtime coverage. However, if you have added Loss of Use or the Downtime Rider to your CAA PlatesPLUS policy, you will be covered if your rental company applies downtime charges.

What is the CAA Downtime Rider?

This coverage option is available with our PlatesPLUS Package Policy.  This rider provides you with coverage in the event you are involved in a covered accident with a rental vehicle and you are charged for the days the vehicle is being repaired.  This option is designed for those who do not want to purchase Loss of Use Coverage but are concerned about the Downtime Risk.  The cost is only $15 per year

The best advice is to Know Before You Go. There's more to renting a vehicle than you might think. Driving an unfamiliar car in a strange place can make an accident more likely. Without the right insurance, you could wind up paying for damages and injuries from your pocket. The rental company will offer several options, including some you won't need. Contact your CAA Insurance Consultant and we will be happy to discuss Rental Car Insurance with you.

Call 1.800.564.6222 for more details.