Car Insurance Calgary: Does My Insurance Cover a Rental Vehicle?

For business and personal car insurance, Calgary has relied on the brokers at Bow Valley Insurance for nearly 35 years. At Bow Valley Insurance, we work for you – not the insurance company! Saving you valuable time, our car insurance brokers shop several leading insurance companies for you, and our access to a number of providers means we can find the best policy to meet your needs.

We are dedicated to keeping our clients as informed as we can about insurance industry news and information. Here we answer a question our brokers are often asked: Am I legally liable for damage to a rental vehicle?

Rental Car Insurance Calgary: Extending Your Current Car Insurance Coverage

Bow Valley Insurance strongly advises that you consult your insurance provider before renting a vehicle anywhere.

In order for your regular car insurance to be extended to your rental vehicle, you must obtain an SEF 27 or “Legal Liability for Damage to Non-Owned Automobile” endorsement from your provider. This endorsement transfers the coverage from your personal vehicle to the rental vehicle, and your provider can assist you in arranging for this additional coverage.

Only the coverage you have on your current policy can be extended to your rental. For example, if you only have collision coverage on your regular vehicle (which pays for damage that is sustained to your car when you hit another vehicle or object), then you will only have collision on your rental. As well, if you have comprehensive coverage for your vehicle (which adds additional coverages such as vandalism, fire or theft), then that same package will be transferred to your rental car policy.

Again, you must obtain a SEF 27 from your provider before picking up your rental vehicle. There are several limits of an SEF 27 endorsement which should be reviewed with your Calgary car insurance provider.

Other Methods of Insuring Your Rental Car

Most major credit cards offer rental car coverage. Coverage may automatically become available when renting your vehicle, but be sure to clarify this with your credit card company first. And if you don’t want to use your credit card to pay for your rental car, coverage may not be available at all. Also be sure check the credit card agreement for your deductible amount and any liability limits.

You can also choose to purchase insurance through your rental car company. Insurance provided through rental car companies will have various terms and conditions. Drivers of rental vehicles should take care to be safe at all times, and carefully follow the agreement’s terms. Some of the agreements typically include the following:

  • Only those named in the agreement may drive the vehicle
  • The vehicle must remain on public roads
  • The vehicle must be locked at all times
  • Never drive while under the influence of alcohol or drugs
  • Do not speed or break any other laws of the road
  • Do not drive a damaged vehicle

Bow Valley Insurance: Car and Rental Car Insurance Calgary

Please contact the car insurance brokers at Bow Valley Insurance if you have any questions about the SEF 27 Endorsement and whether or not you need it.
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