Auto insurance for car rental

[cinvest2021]

Hello,

About a couple of years ago or so, as a newly landed PR, I rented a car from a rental company a few times.

As I was not well accustomed with how things work, the fist time I rented a car it was for a day ride and by then I declined to take auto insurance option from the car company because I mistakenly thought my credit card would got me covered. When I checked it myself after the facts, I discovered that my credit card agreement did have such provision. So actually what did happen is that I drove the car without an insurance per se. Fortunately, nothing has gone wrong in terms of accident, etc. So I got lucky, yet, it is definitely not the proper thing to do. Obviously for the next rental and onward I always added auto insurance option from the car rental. Since I never owned nor planned to own a car soon in Canada at that time, it was still the most economical option to use/add car rental insurance option.

Now that I am looking at the prospect of buying a car in Canada I shall buy a personal auto insurance.

My question, with respect to my omission/failure per above, I was wondering If there is anyway this could get me in trouble when I will soon try to enroll with an auto insurance company ? Should I discuss this with the auto insurance company?

I have to say that apart this negligence, I have a clean driving record, just some parking tickets and a minor over speeding ticket...and that goes back for more than a decade now.

Any insight is most appreciated.
Thanks
Regards

 

[Copingwithlife]

Hello,

About a couple of years ago or so, as a newly landed PR, I rented a car from a rental company a few times.

As I was not well accustomed with how things work, the fist time I rented a car it was for a day ride and by then I declined to take auto insurance option from the car company because I mistakenly thought my credit card would got me covered. When I checked it myself after the facts, I discovered that my credit card agreement did have such provision. So actually what did happen is that I drove the car without an insurance per se. Fortunately, nothing has gone wrong in terms of accident, etc. So I got lucky, yet, it is definitely not the proper thing to do. Obviously for the next rental and onward I always added auto insurance option from the car rental. Since I never owned nor planned to own a car soon in Canada at that time, it was still the most economical option to use/add car rental insurance option.

Now that I am looking at the prospect of buying a car in Canada I shall buy a personal auto insurance.

My question, with respect to my omission/failure per above, I was wondering If there is anyway this could get me in trouble when I will soon try to enroll with an auto insurance company ? Should I discuss this with the auto insurance company?

I have to say that apart this negligence, I have a clean driving record, just some parking tickets and a minor over speeding ticket...and that goes back for more than a decade now.

Any insight is most appreciated.
Thanks
Regards

No issues

 

[Buletruck]

Hello,

About a couple of years ago or so, as a newly landed PR, I rented a car from a rental company a few times.

As I was not well accustomed with how things work, the fist time I rented a car it was for a day ride and by then I declined to take auto insurance option from the car company because I mistakenly thought my credit card would got me covered. When I checked it myself after the facts, I discovered that my credit card agreement did have such provision. So actually what did happen is that I drove the car without an insurance per se. Fortunately, nothing has gone wrong in terms of accident, etc. So I got lucky, yet, it is definitely not the proper thing to do. Obviously for the next rental and onward I always added auto insurance option from the car rental. Since I never owned nor planned to own a car soon in Canada at that time, it was still the most economical option to use/add car rental insurance option.

Now that I am looking at the prospect of buying a car in Canada I shall buy a personal auto insurance.

My question, with respect to my omission/failure per above, I was wondering If there is anyway this could get me in trouble when I will soon try to enroll with an auto insurance company ? Should I discuss this with the auto insurance company?

I have to say that apart this negligence, I have a clean driving record, just some parking tickets and a minor over speeding ticket...and that goes back for more than a decade now.

Any insight is most appreciated.
Thanks
Regards

It’s not that you didn’t have insurance, you didn’t have insurance coverage that would prevent you being liable for any damages to the car. The rental company is responsible for coverage to drive on the road. You haven’t committed any infraction.

 

[cinvest2021]

It’s not that you didn’t have insurance, you didn’t have insurance coverage that would prevent you being liable for any damages to the car. The rental company is responsible for coverage to drive on the road. You haven’t committed any infraction.

Thank you for your response, I did not know about that.
So If I rent a car and just pick their basic minimum rental plan (that is, do no include an insurance option from rental company) while I would not have a personal insurance myself, it is legal to drive the car ?
For information, I am located in Quebec.

 

[Buletruck]

Absolutely. Should there be an accident, the only thing you would be responsible for is repairs to the rental car (even if you aren’t at fault, until they can recover the costs). The car must have public liability/ public damage (PL/PD) supplied by the rental company.

 

[cinvest2021]

All right. Thanks.

 

[cinvest2021]

Absolutely. Should there be an accident, the only thing you would be responsible for is repairs to the rental car (even if you aren’t at fault, until they can recover the costs). The car must have public liability/ public damage (PL/PD) supplied by the rental company.

Just an additional note please.

I read in the Quebec road regulation website:

For property damage, you are required to have a third-party liability insurance contract of at least $50,000.

So the rental car company will always provide that liability insurance? is it correct? so I will be compliant?

Thanks

 

[Buletruck]

Yes. That’s the PL/PD part of the insurance. In order to insure a car in Canada, you must be the registered owner. As the renter, you obviously don’t own the vehicle, you’re technically just borrowing it for a fee.

 

[cinvest2021]

Thanks. Very much appreciated.

 

[canuck78]

Just an additional note please.

I read in the Quebec road regulation website:

For property damage, you are required to have a third-party liability insurance contract of at least $50,000.

So the rental car company will always provide that liability insurance? is it correct? so I will be compliant?

Thanks

The rental company will automatically charge you for it unless you can prove you already have coverage.