Car rental and insurance: What you need to know

What insurance should you choose for a rental car?

The best insurance for a rental car covers both:

• damage to the rental vehicle (with or without a deductible); and
• bodily injury or property damage caused to others.

The insurance premium can significantly increase your bill—sometimes nearly as much as the vehicle itself—but it remains essential.

Personal auto insurance: Are you covered?

If your auto insurance includes the Q.E.F. 27 endorsement—Damage caused to vehicles of which named insured is not owner—you are covered for damage to your rental vehicle, but only within Canada and the United States.

This coverage is generally identical to that of your own vehicle: same protections, same deductibles.

Good to know: This coverage is included in the No-Stress Policy, exclusive to CAA-Quebec members.

What rental vehicles are covered by the Q.E.F. 27 endorsement?

The Q.E.F. 27 endorsement covers:

• Cars
• Recreational vehicles (RVs), trailers, and tent trailers
• Utility trailers
• Certain utility vehicles, such as moving trucks

Pay close attention if you plan to rent a motorcycle (including three-wheeled models such as Slingshots or Spyders). Some insurers do not cover them. In those cases, insurance from the rental company is recommended.

Civil liability and insurance premiums: How much coverage do you need?

Your auto insurance includes civil liability coverage. It covers bodily injury and property damage caused to third parties. However, the coverage amount may not be sufficient for a road trip in the United States. A minimum of $2 million CAD in liability coverage is recommended.

Car rental abroad: What insurance should you choose?

Your personal auto insurance generally only covers Canada and the United States. If you’re renting a vehicle elsewhere in the world, you will need to look into alternative coverage options.

Credit card insurance: What does it cover?

If you pay for your car rental with a credit card, check the coverage it provides. It often covers damage to the rental vehicle, but rarely civil liability.

Before relying on this coverage, verify its scope and general conditions:

• Duration of coverage
• Exclusions (destination, vehicle type, length of trip)
• Coverage for vandalism
• Requirement to pay the full rental cost with the credit card
• Whether an International Driving Permit (IDP) is required

If the protections are not sufficient, you will need to explore another solution.

Rental agency insurance: When should you choose it?

Insurance offered by the rental company is often expensive. Feel free to decline it if you are already well covered by your personal auto insurance or your credit card.

If you do need to purchase it, opt for the prepaid option before your departure, which is often more affordable. Depending on your existing coverage, you may only need civil liability or damage coverage for the rental vehicle.

Good to know: These protections are often included in the base price. Make sure you are not paying twice.

Travel insurance: An option for renting a vehicle abroad

If you’re renting a vehicle in Europe, Mexico, or elsewhere, your travel insurance may help. Some policies—including the one offered by CAA-Quebec—include an optional protection called Rental vehicle damage coverage:

• Available at any age
• Can cover up to 60 days
• Reimburses up to $80,000
• Includes protection in case of collision, theft, fire, and vandalism
• No deductible applies

It does not cover third-party civil liability or personal bodily injury. However, you do not need to purchase it before your departure—it simply must be activated before the vehicle rental date.

Car-sharing services: What should you check?

Using a car-sharing platform such as Turo?

Before confirming your reservation:

• Choose the offered protection or decline it.
• Check the available options depending on the country.

Your personal auto insurance may apply in certain cases if you have selected the additional Q.E.F. 27 endorsement.

Good to know: Your credit card insurance may only be valid with traditional rental agencies. Check with your card issuer.

Car accident abroad: Are you covered if you are injured?

The Société de l’assurance automobile du Québec (SAAQ) compensates you for bodily injury anywhere in the world, regardless of who is at fault. It covers the excess hospitalization costs not covered by the RAMQ.

You can file your claim upon your return. There is only one condition: Your stay must be less than 6 months within the same calendar year, meaning fewer than 183 days per year.

Why add travel medical insurance?

Emergency medical travel insurance is strongly recommended. It helps you avoid complex administrative procedures abroad. In addition, you will also be covered for medical expenses unrelated to a car accident, such as repatriation costs, accommodation expenses, and all other medical fees not covered by the SAAQ or the RAMQ.

What documents do you need for a car rental while travelling?

Keep all documents related to your vehicle rental, as they contain important information:

• Car rental agreement: Conditions, additional fees (eco-levy, second driver surcharge, etc.), vehicle pick-up and return terms
• Proof of insurance (auto or travel): Copy of the Q.E.F. 27 endorsement or rental vehicle damage protection from your travel insurance
• Insurer contact information: Customer assistance phone number
• Proof of credit card coverage (if applicable)
• Quebec driver’s licence and IDP if required

Tip: Keep local traffic rules and road sign information handy.