# Rental car in Ontario



## none (Jan 15, 2013)

HI Everyone,
I'm headed to Ontario next week and have a car rented. What's the deal with car rental insurance in Ontario - does it include third party liability?

i have an aerogold card so that should cover collision but it would be nice to know what's up prior to getting to the rental counter.

Thanks for the help.


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## HaroldCrump (Jun 10, 2009)

Rental car insurance does not include liability insurance.
It is simply a CDW - collision and damage waiver, that is all.

You should use your regular auto insurance policy as the liability insurance (make sure your policy covers out of province rental).


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## jamesbe (May 8, 2010)

Shopping for real estate? LOL sorry couldn't resist.


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## none (Jan 15, 2013)

jamesbe said:


> Shopping for real estate? LOL sorry couldn't resist.


Thanks - I'll call up my local insurance and sort it out.

As for house hunting. I hear there are some great condo deals in Toronto, I may pick up a few for flipping. Easy money guaranteed! Real estate ALWAYS goes up


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## HaroldCrump (Jun 10, 2009)

Yeah, you can even buy one with all the money you will save on rental car insurance.


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## Spudd (Oct 11, 2011)

Actually, rental cars do come with liability in Ontario. Here's some verbage from Avis's website:


> Public Liability Insurance is the liability coverage for vehicles that is required by applicable law if a driver causes injury to a third party. Avis provides this liability protection for its vehicles. In most instances, this will include coverage for the renter or authorized driver up to the minimum financial responsibility limits of the jurisdiction in which the accident takes place. This is at no additional charge. In some provinces, particualrly Ontario, the liability coverage which is provided is secondary to any other applicable coverage. This means the renter's personal auto liability insurance is used first, and the Avis protection will not apply until the renter or driver's insurance, if any, has been exhausted. Please check with the rental agent or nearest Avis reservation center regarding the applicability of secondary protection for specific locations and jurisdictions. You should also check with your own insurance company to determine the level of your protection under their policy.


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## none (Jan 15, 2013)

Thanks everyone. I called BCAA and apparently we have full coverage so we're redundant.


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## HaroldCrump (Jun 10, 2009)

Spudd said:


> the liability coverage which is provided is secondary to any other applicable coverage. This means the renter's personal auto liability insurance is used first, and the Avis protection will not apply until the renter or driver's insurance, if any, has been exhausted.


Fat lot of good that does !

The rental agency will go after your insurance for the full amount (which is $1M usually) and that will count as a claim against your policy.
This is just bafflegab by the rental car agency.


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## Four Pillars (Apr 5, 2009)

HaroldCrump said:


> Fat lot of good that does !
> 
> The rental agency will go after your insurance for the full amount (which is $1M usually) and that will count as a claim against your policy.
> This is just bafflegab by the rental car agency.


It seems fine to me. Lots of people who rent cars don't own a car and don't have their own liability insurance. They will be able to make use of the Avis insurance.


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## HaroldCrump (Jun 10, 2009)

Four Pillars said:


> It seems fine to me. Lots of people who rent cars don't own a car and don't have their own liability insurance. They will be able to make use of the Avis insurance.


How are they planning to underwrite this policy at the counter?
When insurance companies underwrite your liability policy, they check your driving history, convictions, even credit history for some companies.
The rental insurance is sold over the counter.

I know many folks in Ontario that don't own a car, but have liability insurance.


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## Four Pillars (Apr 5, 2009)

HaroldCrump said:


> How are they planning to underwrite this policy at the counter?
> When insurance companies underwrite your liability policy, they check your driving history, convictions, even credit history for some companies.
> The rental insurance is sold over the counter.
> 
> I know many folks in Ontario that don't own a car, but have liability insurance.


How would I know? What difference does it make?


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## HaroldCrump (Jun 10, 2009)

Four Pillars said:


> How would I know? What difference does it make?


It makes a difference if you were planning to shell out the $$ to buy the rental agency's policy.
Would you just hand over your money without understanding how it works, and exactly what is covered?

And of course it will matter (a lot) when someone does get into an accident and there is a liability claim.


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