Re: Third Party Liability Insurance coverage on a Rental Car.


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Pantar   
Member since: May 07
Posts: 37
Location:

Post ID: #PID Posted on: 13-06-07 04:14:20

Hi,

If I am renting a car with a credit card that covers rental insurance (Specifically covers damage only to the rental car), How do I ensure third party liability and damage insurance.

I was told that rental companies cover (by Default) third party liability and damage. (When I used to rent with National car rental)

But, I am told by 'Discount' Rental, clearly, that they do not cover third party liability and any damage to the other vehicle will be my responsibility.

Does it depend on the rental company to provide (supposedly by default) third part liability and damage coverage? Or the 'Discount' guy is misleading in order to sell me insurance?

Please advise.

Pantar



Pantar   
Member since: May 07
Posts: 37
Location:

Post ID: #PID Posted on: 14-06-07 21:48:10

Are Bhai Log,

Apun ka bhai log Koi rental gaadi nahin leta hai kya?

kuch advise karo na bidu!

apka

Pantar



DesiGuy1981   
Member since: Mar 07
Posts: 282
Location:

Post ID: #PID Posted on: 14-06-07 22:47:01

Bhidu,
mai gadi rent to nahin karta lekin apan rental company mai assistant manager zaroor hai..
anyways
your gold visa or master card covers everything...the guy just trying to sell u the insurance..matter effect thats wat we do as well..u know y? cuz sumtime we put out cars for 19.99 a day and most of the time customer has gold card..so we cant sell the insurance which is 19.99 a day as well.. so we try selling 5.99 liability waiver.
at my location, the cutomer has to take 5.99 waiver..NO CHOICE

and we end up making 30 bucks a day..if we dont..we get a call from head office for putting a car out only for 20 dollars. if ur taking a car for a day or 2..then dont bother but if ur taking for more days..call ur credit card company...make them fax u a letter that wud explain that everything will be covered by them.



Big Vee   
Member since: Jan 05
Posts: 456
Location: Canada-Glorious and Free

Post ID: #PID Posted on: 15-06-07 09:33:20

Quote:
Originally posted by Pantar

Hi,

If I am renting a car with a credit card that covers rental insurance (Specifically covers damage only to the rental car), How do I ensure third party liability and damage insurance.

I was told that rental companies cover (by Default) third party liability and damage. (When I used to rent with National car rental)

But, I am told by 'Discount' Rental, clearly, that they do not cover third party liability and any damage to the other vehicle will be my responsibility.

Does it depend on the rental company to provide (supposedly by default) third part liability and damage coverage? Or the 'Discount' guy is misleading in order to sell me insurance?

Please advise.

Pantar



Rental car companies try to make this difficult for the consumer because the average consumer does not understand insurance. And like Desiguy said, it represents a source of profits. At $ 20 a day - insurance would earn about $ 6,000 per vehicle per year. How many here pay $6k in insurance?? Most rental companies are self insured with only re-insurance coverage. Think of this as wholesale insurance coverage only.

Every car licensed in Canada has to have a 3rd party liability insurance. This is the isurance that covers damage to a third party like a fence post, or another car, or even a leg. Notice that there are different things that can be damaged in an a collision. So 3rd party insurance is split into two types called Bodily Injury (BI) and Property Damage(PD). The basic coverage in every province is different but there is an amount for the combined BI / PD and individual limits for each of them as well. By law, every rental must include the basic BIPD coverage. The company has a choice to breakout the charge as a seperate entry or roll it into the rental fee but you cannot "DRIVE A CAR" without 3rd party liability.

It seems National rolled the charges in with rental. Discount may not be. The reason is this, many personal car insurance policies have a rental clause. The clause covers rental cars with the same limits that you have on your personal car . The thinking behind this is - if you are driving a rental car - you cannot drive your personal car at the same time (only one car is on the road at one time). And this is used by the insurance company to rent you a car when your car is being fixed due to an insurance claim. In short, the rental company has a choice to breakout the charge or roll it into the rental fee.

Your credit card does not cover 3rd party liability insurance (Desiguy said M/C or VISA covers everything). Credit card companies cover damage to the rental car with the exception of damage caused by stationary objects. So if you hit a wall, even the credit card will not cover it. Finally, the liability waiver mentioned by the Desiguy ($ 5.99) is another hokey charge. Because you cannot waive liability insurance in Canada. Like I said, you cannot drive a car without liability insurance. The rental companies charge you $ 5.99 for liability waiver but it can only be waived if there is another replacement liability insurance.

PS I have run rental territories with multiple locations with over $ 20M is assets (vehicles) and over $ 4M in annual revenue.


BV



Pantar   
Member since: May 07
Posts: 37
Location:

Post ID: #PID Posted on: 17-06-07 05:47:15

Thanks desiguy1981 and Big Vee for inputs!

I also contacted my existing insurance company from whom I am buying 3rd party for my broken car. They said that they will cover me (The driver) for third part on a rental car.

So, My credit card covers me for rental car and my existing insurance company covers me for third party.

Thanks

Apka pantar.



Fido   
Member since: Aug 06
Posts: 5286
Location: Canada

Post ID: #PID Posted on: 21-03-16 10:57:26

Quote:
Originally posted by Big Vee

Quote:
Originally posted by Pantar

Hi,

If I am renting a car with a credit card that covers rental insurance (Specifically covers damage only to the rental car), How do I ensure third party liability and damage insurance.

I was told that rental companies cover (by Default) third party liability and damage. (When I used to rent with National car rental)

But, I am told by 'Discount' Rental, clearly, that they do not cover third party liability and any damage to the other vehicle will be my responsibility.

Does it depend on the rental company to provide (supposedly by default) third part liability and damage coverage? Or the 'Discount' guy is misleading in order to sell me insurance?

Please advise.

Pantar



Rental car companies try to make this difficult for the consumer because the average consumer does not understand insurance. And like Desiguy said, it represents a source of profits. At $ 20 a day - insurance would earn about $ 6,000 per vehicle per year. How many here pay $6k in insurance?? Most rental companies are self insured with only re-insurance coverage. Think of this as wholesale insurance coverage only.

Every car licensed in Canada has to have a 3rd party liability insurance. This is the isurance that covers damage to a third party like a fence post, or another car, or even a leg. Notice that there are different things that can be damaged in an a collision. So 3rd party insurance is split into two types called Bodily Injury (BI) and Property Damage(PD). The basic coverage in every province is different but there is an amount for the combined BI / PD and individual limits for each of them as well. By law, every rental must include the basic BIPD coverage. The company has a choice to breakout the charge as a seperate entry or roll it into the rental fee but you cannot "DRIVE A CAR" without 3rd party liability.

It seems National rolled the charges in with rental. Discount may not be. The reason is this, many personal car insurance policies have a rental clause. The clause covers rental cars with the same limits that you have on your personal car . The thinking behind this is - if you are driving a rental car - you cannot drive your personal car at the same time (only one car is on the road at one time). And this is used by the insurance company to rent you a car when your car is being fixed due to an insurance claim. In short, the rental company has a choice to breakout the charge or roll it into the rental fee.

Your credit card does not cover 3rd party liability insurance (Desiguy said M/C or VISA covers everything). Credit card companies cover damage to the rental car with the exception of damage caused by stationary objects. So if you hit a wall, even the credit card will not cover it. Finally, the liability waiver mentioned by the Desiguy ($ 5.99) is another hokey charge. Because you cannot waive liability insurance in Canada. Like I said, you cannot drive a car without liability insurance. The rental companies charge you $ 5.99 for liability waiver but it can only be waived if there is another replacement liability insurance.

PS I have run rental territories with multiple locations with over $ 20M is assets (vehicles) and over $ 4M in annual revenue.


BV



This appears to be very good information but still a bit confusing for me ..

a. I have annual insurance on my regular vehicle ( which covers 3rd party).
b. I also have a credit card which has auto insurance coverage.
c. I rent a car for 4 days... I pay with my above credit card.
d. I decline additional insurance offered by the renter .


In case of a collision - who covers what ...

1. Damage to the rented vehicle - would it be covered by credit card OR my insurance company ?

2. Who covers 3rd party damages to vehicle + health related : credit card or my insurance ?

3. In case of collision with stationary object (say wall ) --- who covers vehicle damage ?

4. Last q - Does my insurance policy coverage get ported to the rented vehicle automatically OR do I have to request for it ?




-----------------------------------------------------------------
Fido.


Fido   
Member since: Aug 06
Posts: 5286
Location: Canada

Post ID: #PID Posted on: 21-03-16 14:09:13

Researching it more here's what I find

When you are at fault , there are 2 risks involved - damage to 3rd party (either body or property) and

Damage to your own vehicle .

Damage to your own vehicle can be either optionally purchased through the rental agency OR covered by your credit card till about $50 - 60K...

Third Party :

(Optionally) If you have a Personal auto insurance , you can get it endorsed for rental car for $35/- year which will port your coverage to rental vehicle .... In the case of a collision your own personal car insurance will be on top of the 3rd party liability coverage already covered by the rental agency as a part of the agreement ...

Quote:

The law requires all vehicles in Ontario, including those owned by car rental companies, to carry a minimum of $200,000 third-party liability insurance. The rental agencies I contacted, however, say they carry at least a million in third-party coverage.

?Car rental companies can?t sell liability; it?s the law that it comes with the car. The car has to have liability, so whatever the company policy has is what would be available to their customers,? says an Associated Canadian Car Rental Operators spokesperson.


-----------------------------------------------------------------
Fido.




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