• Last Updated:
  • Jul 19th, 2015 12:47 pm
Tags:
None
Penalty Box
Apr 5, 2013
3973 posts
1273 upvotes
markham
pishta wrote:
Jul 17th, 2015 10:14 pm
- One aspect about renting cars is also unclear in my mind: how are you covered for liability?
- I think I did a search about this, but it is still not clear if you get covered through your own car insurance.
- From what I read, it seem to me that the rental companies do not sell liability insurance/coverage.
Not sure if in Canada this is offered at all.
- Also, in US, it seems that the law requires the rental companies to have a minimum liability coverage for the cars that they rent. the problem seems to be that the minimum is so low (10K-12K USD) that is practically useless in case you get sued.

- Does anybody know what is the situation in Canada, regarding this?

- If I have only 100K liability coverage for rental cars, from my own car insurance policy, do I need to call my insurance and pay for more coverage when renting a car in another province in Canada?

Thx
i am pretty sure you have at least 1 mill in liabilty ..at least in ontario...also, use an amex or comparable credit card, it also entitles you to certain coverages
Member
May 30, 2015
226 posts
120 upvotes
cardguy wrote:
Jul 18th, 2015 3:30 pm
i am pretty sure you have at least 1 mill in liabilty ..at least in ontario...also, use an amex or comparable credit card, it also entitles you to certain coverages
Thank you for your reply.

- First I want to make it clear: I am interested about coverage for driving rental cars in other provinces (not just ON) and maybe in US.

- I called my insurance company (Meloche Monnex). The agent kept telling me about something that they call "Grand Touring Solution", which is also included in my policy.
- The problem with that is the fact the it says very clear that "Grand Touring Solution" covers up to 100k in damages to the rental car (not sure if it covers the other car damages, in case of a collision with another vehicle).
- I kept telling the agent that "Grand Touring Solution" is not for liability in case the driver gets sued for liability in case of bodily injuries.
- The agent (sounded like she was from an Indian call center) put me on hold 3-4 times to ask somebody else. Then she would tell me that my 1 mil liability for bodily injuries that I have for my own car is "automatically" transferred to the rental vehicle.
- I asked the agent if she can point me to something where I can see in writing what she kept repeating on the phone. Then she put me again on hold to ask somebody else, I assume.
- When she came back on the phone, she pointed me to the Financial Services Commission of Ontario (http://www.fsco.gov.on.ca/en/Pages/default.aspx). First she pointed me to a PDF form (OAF 1) for application for auto insurance. Again I mentioned to her that the form did not seem to have nothing to do with my liability question. Then, I was back on hold. Next, she pointed to a different form:

OPCF 2 (http://www.fsco.gov.on.ca/en/auto/forms ... /1235E.pdf)

- This form seems to be related with my question. But still, it is just a form. I simply don't understand how is that reflected in my policy. The agent repeated what she was saying earlier, that it is "automatically" included in my coverage from them and that the coverages that I have for my own car are transferred to the rental car when I am driving the rental.

- After I asked again if there is a written document that will say that, the agent told me that she will mail me (only via regular mail) "the binder" that is associated with my policy, where, according to her, it is specified that the coverages that I currently have for my car will apply for a rental car too.

- Really confusing. The problem that I pointed to the agent several times, and insisted, is that when I login into my account online with them I see a sentence that does not confirm what the agent was saying. When I look at my policy details, the first sentence before the list of the coverages that I have, it reads "The following coverages apply only to this vehicle."

- I will see what I will get in the mail. I think I got that "binder" when I signed with them, but I am not sure where I put it.

Seems to me that this is very confusing.

I am just hoping that they don't trick people in driving around without this type of coverage (i.e. "Liability for bodily injuries"), because this can be by far the most costly thing.
Deal Addict
Apr 22, 2013
2077 posts
1261 upvotes
Markham
Working in rental, particularly the big E, if you have any real concerns about liability they will offer you what's called PAI(Personal Accident Insurance) and this particularly deals with liability and injuries, its also lumped in with PEC(Personal Effects Coverage) which is basically the worth of whatever you had in the car. This will be a daily charge just like CDW(Collision Damage Waiver). So if the liability truly is a problem(particularly with America thanks to its litigious nature) either because its too little or you even lack it, you'll have to buy PAI coverage at a minimum.

Sadly I'm not certain about how your own personal insurance policy deals with it.
Member
May 30, 2015
226 posts
120 upvotes
JeganV wrote:
Jul 18th, 2015 8:46 pm
Working in rental, particularly the big E, if you have any real concerns about liability they will offer you what's called PAI(Personal Accident Insurance) and this particularly deals with liability and injuries, its also lumped in with PEC(Personal Effects Coverage) which is basically the worth of whatever you had in the car. This will be a daily charge just like CDW(Collision Damage Waiver). So if the liability truly is a problem(particularly with America thanks to its litigious nature) either because its too little or you even lack it, you'll have to buy PAI coverage at a minimum.

Sadly I'm not certain about how your own personal insurance policy deals with it.

Thank you for your answer, but I am not sure if my question was clear enough.


- You are saying that you work in this industry. I looked at the details about the PAI:

I will probably use Avis. This is what it is written at their website:
Personal Accident Insurance (PAI)

Personal Accident Insurance (PAI) provides accidental death benefits and emergency medical expense benefits to the renter and all passengers in the Avis car.

The renter is covered 24 hours a day during the rental for the following:

$175,000.00 accidental death
$2,500.00 medical coverage for injuries due to an accident
$250.00 for ambulance expenses

The passengers are covered while in the car for the following:

$17,500.00 accidental death
$2,500.00 medical coverage for injuries due to accident
$250.00 for ambulance expenses
(source: https://www.avis.ca/car-rental/content/ ... .coverage1)
[It seems that they have a typo on their website, because for the passengers the coverage for accidental death is only $17.5 K (10x less than for the renter). Probably a typo, not sure.]

- Just guessing what "big E" means, I found this (the search returned only answers for US):
Personal Accident Insurance / Personal Effects Coverage (PAI/PEC):

Personal Accident Insurance (PAI) available at all Enterprise Locations.

Personal Effects Coverage (PEC) available at Enterprise Airport Locations only.

PERSONAL ACCIDENT INSURANCE / PERSONAL EFFECTS COVERAGE (PAI/PEC) is offered at the time of rental for an additional daily charge. If accepted the PAI contained in the policy provides renter and renter's passengers with accidental death, accident medical expenses and ambulance expense benefits. The PEC contained in the policy insures the personal effects of the renter, additional drivers, or nay members of the renter's immediate family who permanently resides in the renter's household and who is traveling with the renter against risks of loss or damage. Benefits are payable in addition to any other insurance coverage the renter or passengers may have. This is a summary only.

PAI/PEC is subject to the provisions, limitations and exclusions of the PAI/PEC policy underwritten by Empire Fire And Marine Insurance Company or Empire Indemnity Insurance Company depending on the rental location. The purchase of PAI/PEC is optional and not required to rent a car. The coverage provided by PAI/PEC may duplicate the renter's existing coverage.

Enterprise is not qualified to evaluate the adequacy of the renter's existing coverage; therefore the renter should examine his or her personal insurance policies or other sources of coverage that may duplicate the coverage provided by PAI/PEC.

The cost of PAI/PEC varies based on the location you are renting. It will average between $5.00 and $11.00 per day.
(source: https://enterprise.custhelp.com/app/ans ... 0insurance)

Reading these, it seems to me that PAI has nothing to do with liability coverage against being sued for injuries affecting other people that might be involved in an accident.

Both Avis and "big E" are also offering these:
Additional Liability Insurance (ALI)

Renter may purchase Additional Liability Insurance (ALI) at the time of rental. ALI provides additional protection for bodily injury, death or property damage and increases the limits to $1,000,000 or $2,000,000 combined single limit depending on the location. When ALI is purchased, Avis will always provide the Financial Responsibility Limits (FRL) on a primary basis.
(source: https://www.avis.ca/car-rental/content/ ... .coverage1)

and
Supplemental Liability Protection (SLP)

SUPPLEMENTAL LIABILITY PROTECTION (SLP) is offered at the time of rental for an additional daily charge. If accepted, SLP provides the renter and authorized drivers with up to $1,000,000 combined single limit for third party liability claims.

If the renter accepts SLP, Enterprise provides third party liability protection up to the applicable minimum financial responsibility limit and Empire Fire and Marine Insurance Company provides excess third party liability insurance coverage from the applicable minimum financial responsibility limit to $1,000,000. This is a summary only.

SLP is subject to the terms, conditions, provisions, limitations and exclusions in the supplemental rental liability insurance excess policy underwritten by Empire Fire and Marine Insurance Company or Empire Indemnity Insurance Company depending on location. The purchase of SLP is optional and not required to rent a car. The coverage provided by SLP may duplicate the renter's existing coverage.

Enterprise is not qualified to evaluate the adequacy of the renter's existing coverage; therefore the renter should examine his or her personal insurance policies or other sources of coverage that may duplicate the coverage provided by SLP.

The cost of SLP varies based on location you are renting. It will average between $9.99 and $15.50 per day
(source: https://enterprise.custhelp.com/app/ans ... 0insurance)


Unfortunately, for my particular booking with Avis, I got this:

[IMG]http://i57.tinypic.com/2crvedf.jpg[/IMG]

Thx
Deal Addict
Apr 22, 2013
2077 posts
1261 upvotes
Markham
You'd probably have to ask the branch itself to add this. The computer systems are the same no matter what country they operate it, just make sure that its in the system before leaving. The portion regarding your own insurance company and the rental car is likely to fall under OCPF 27 according to the Ontario government.

https://www.fsco.gov.on.ca/en/auto/broc ... nting.aspx
Deal Fanatic
User avatar
Jun 19, 2001
8025 posts
1664 upvotes
IN ON they cant sell liability because its required to come with the car http://www.theglobeandmail.com/globe-dr ... e12063049/ If you are renting elsewhere in the world that often isnt the case

If you don't have dependants then "accidental death" won't be a concern for you. If you feel you need such coverage you'd be far better off with a life insurance policy then pay the outrageous per day upsell from the rental co. that only covers an accident in their car. The medical coverage is a joke, if you are going to the USA you need coverage far in exess of what car rentals want to charge an outrageous amount for.

Its not a typo that they offer less coverge for passengers then the renter

Depending on the rental co whether roadssie assistance is included (it is with Discount), or an extra fee. Enterpise is something like $7/day (thats like paying $2,500 year for CAA!! The other options are similarily over priced). Most people who have their own auto policy ro a cc with CDW coverage don't take any of them.

Top