Rent a Car in Canada – Insurance Issues

Q: I rent a car near the border and use it for two weeks in Canada. My Insurance company says they don’t insure that car but the credit card they issue does cover the car I am driving. My liability?

A: I am very surprised that your car insurance company doesn’t provide coverage for a rental car in Canada.  You may want to obtain the legal contract of your policy and take a look yourself. I think you may have been told the wrong information because most insurance companies in the United States do provide coverage in Canada and so many miles into Mexico.

But I do have to ask, are you renting on the Canadian side or the US side? Because that would make a difference. Rental cars from outside of the US are generally not covered by your US insurance policy. Some insurance companies offer higher levels of coverage that would include it, but that is rare.

In regards to your credit card covering it, that is something completely separate.  Credit cards have different rules and regulations. To protect yourself though, I would make sure that you have it in writing that your credit card company will cover the damage to your rental car and any damage you would do driving the rental car. I am not familiar with the terms of coverage with a rental car through a credit card though as I have never had to use it, research it, or work with it.

If nothing else, purchase insurance from the company that you are renting a car through.