Make Sure You Are Insured When Renting an Automobile
Thinking of renting a vehicle? Before you rent your next
vehicle be sure to read the contract carefully, because there may be coverage
gaps.
Rental companies have Physical/Loss Damage Waivers you can
purchase. The physical damage waiver protects you in the event that you damage
the rented automobile and transfers the responsibility for the cost of the
damage to the auto rental company. You can also look into the Policy Change
Form, endorsement 27 that can be added to you automobile policy. Some contracts
may exclude the following:
• theft of the vehicle
• glass, tire and undercarriage damage
• animal collision
• flood and hail damage
• damage above the windshield
What is the 27 endorsement?
The 27 is an endorsement that extends physical damage coverage from an
insured vehicle to a non-owned vehicle while the non-owned vehicle is in the
care, custody or control of an insured person within the territorial limits of
the automobile policy – Canada and the United States.
Requirements for adding the endorsement, and how it responds at
the time of a loss can vary between companies. Some companies read the coverage
into their policies with a set deductible while others require Section 7 – Loss
or Damage Coverage’s to be purchased.
Food For Thought When Renting a Vehicle
You can choose to purchase the physical damage waiver from the auto rental
company, subject to a deductible, although there may be exclusions. The
protection will vary between rental companies.
If you are not covered under an automobile insurance policy with
the 27 endorsement, and you choose not to purchase the damage waiver from the
rental company, you will be responsible for the costs resulting from any
physical damage to the automobile while it is in your care.
And remember, whenever you rent a car, it is always important to
read the contract carefully. The same idea applies to checking your automobile
policy because coverage is always subject to exclusions.
Other things to verify with your insurance company or on your
policy documents prior to renting a vehicle:
• The insurance company’s maximum limit per occurrence.
• What deductible will be applied in the event of claim?
• What is the period of coverage each time you rent a
vehicle?
• What type of vehicle does your endorsement cover? If it’s
not for personal use ensure the endorsement will cover your rental.
For more information and/or a no obligation quote- Call your
OPSEU Insurance program @ 1.888.336.7738
