Posts tagged canada

Question by canadianrobert:
Can someone help me comprehend the vehicle rental laws in Ontario and the rest of Canada?
I have the optional coverage added to my Bank of Montreal MasterCard for vehicle rentals. Full details can be found here.

http://www3.bmo.com/mosaik_images/silver_travelprotection_en.pdf

It states I must decline the Collision Damage Waiver or Loss Damage Waiver from the Automobile Rental company. When I ask the vehicle rental agencies for a breakdown of their insurance I never get a straight answer.

In summary the benefits are:

Coverage Benefits
Subject to the terms and conditions, You are covered for:
1. damage to the Rental Car; and
2. theft of the Rental Automobile or any of its respective parts or accessories; and
3. rental bureau charges for valid loss-of-use while the Rental Automobile is being repaired; and
4. reasonable and customary charges for towing the Rental Automobile to the nearest available facility.

This coverage does not provide any form of third celebration automobile, property damage or personal injury liability insurance.

What exactly does the last line mean? “coverage does not provide any form of third celebration automobile, property damage or personal
injury liability insurance.”

One person at a vehicle rental company stated that the rental company covers everyone for third celebration damage and liability under their own insurance and the extra insurace is not neccessary as BOM would cover the rental car. When I researched it online, it seems many people think their own vehicle insurance covers them. Is this true? I do not own a vehicle and do not have regular auto coverage. I plan on a renting a lot of automobiles in the next 6 months and the savings could be significant if I go without the rental bureau coverage. But I am uncertain if I would be responsible for third celebration damage/liability if I decline the coverage.

Can someone help clarify this for me?

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