Do you need a rental vehicle while you’re on vacation? Often times there is a grey area about rental car insurance coverage. Does your personal auto insurance cover you while you are driving your rental car? Do you need to purchase the insurance offered from the rental car agency? Let’s clear things up!

The coverage is called OPCF 20/27 – Coverage for Transportation Replacement and Liability for Damage to Non–Owned Automobile(s) and Other Coverages when Insured Persons Drive, Rent or Lease Other Automobiles.

There is an additional cost for having this endorsement on top of your auto insurance policy. The cost varies, dependent upon your insurance company. This endorsement transfers the coverage you have on your vehicle to the rental vehicle.

Here are the facts:

  • If you have the additional endorsement, your deductible would apply if you got into an accident with the rental
  • You would be charged for any at fault accidents on your policy even if it was with the rental
  • If you have the endorsement, you do have coverage for the insurance on a rental vehicle if you are renting a vehicle for a personal reason
  • You can use it for any vehicle you rent as long as it weighs 4,500 kg or less
  • The Coverage only applies if you rent a car in Canada or USA

Without this endorsement, we recommend you purchase the insurance coverage offered by the rental car agency. When in doubt, call us! We are happy to review your current coverages and help you decide your best option.