Car rental insurance abroad (for Canadians)

[lots-of-km2]

I’m thinking of renting a car in Australia after a cruise, and trying to decide whether to rent the car and obtain full, no deductible CDW insurance directly from the Australia-based rental car company or to rent the same car and buy insurance through an established Canadian online travel agency website whose name starts with ‘ex’.

 

The overall price including insurance is somewhat cheaper on the Canadian travel agency website, even though the car still comes from the same rental company.

 

Does it make any difference where a Canadian person buys the insurance, whether from a Canadian source or from an Australian one? (assuming that the items covered are comparable).  Also, is there any advantage to buying the insurance directly from the car rental company versus an online travel agency?

 

I’m not knowledgeable about car rental insurance abroad because I usually rely on my credit card for CDW.  A bunch of you on the Canadian boards are knowledgeable about insurance matters, so your insight would be helpful to me.

Edited March 2 by lots-of-km2

[CDNPolar]

18 hours ago, lots-of-km2 said:

I’m thinking of renting a car in Australia after a cruise, and trying to decide whether to rent the car and obtain full, no deductible CDW insurance directly from the Australia-based rental car company or to rent the same car and buy insurance through an established Canadian online travel agency website whose name starts with ‘ex’.

 

The overall price including insurance is somewhat cheaper on the Canadian travel agency website, even though the car still comes from the same rental company.

 

Does it make any difference where a Canadian person buys the insurance, whether from a Canadian source or from an Australian one? (assuming that the items covered are comparable).  Also, is there any advantage to buying the insurance directly from the car rental company versus an online travel agency?

 

I’m not knowledgeable about car rental insurance abroad because I usually rely on my credit card for CDW.  A bunch of you on the Canadian boards are knowledgeable about insurance matters, so your insight would be helpful to me.

 

We have the TD Visa Infinite Privilege card and it covers CDW but specifically states that you must decline on your rental contract to be in force.

 

We also have rental CDW coverage on our home car insurance.

 

I question if you have the appropriate CC or Home Car insurance, why you would buy that in Australia?  This is one of the ways that rental companies rake in the profits.

[d9704011]

52 minutes ago, CDNPolar said:

 

We have the TD Visa Infinite Privilege card and it covers CDW but specifically states that you must decline on your rental contract to be in force.

 

We also have rental CDW coverage on our home car insurance.

 

I question if you have the appropriate CC or Home Car insurance, why you would buy that in Australia?  This is one of the ways that rental companies rake in the profits.

For sure, car rental insurance is a cash cow for car rental companies.  Much like CDNPolar, I use my Visa Infinite card to rent and provide coverage.  Visa will provide a Certificate of Insurance for the rental period if you phone and ask so that you'll have a specific document showing proof of insurance.  My own car insurance will not cover rentals outside of North America.

[CDNPolar]

Just as a note that I have seen on the Visa Infinite terms and conditions, is you can only use this CDW insurance on the Credit Card if you specifically DECLINE the CDW from the car rental agency.  The TD Credit Card will not act as a secondary to the car rental agency.

[d9704011]

1 hour ago, CDNPolar said:

Just as a note that I have seen on the Visa Infinite terms and conditions, is you can only use this CDW insurance on the Credit Card if you specifically DECLINE the CDW from the car rental agency.  The TD Credit Card will not act as a secondary to the car rental agency.

I believe that's common with all credit card rental car coverage schemes.

[lots-of-km2]

6 hours ago, CDNPolar said:

I question if you have the appropriate CC or Home Car insurance, why you would buy that in Australia?  This is one of the ways that rental companies rake in the profits.

 

I have exactly the same credit card that you do, the TD Visa Infinite Privilege. Typically, I rely on its CDW in Canada and the US, and I do know that I have to refuse the rental car company's insurance in order for the credit card CDW coverage to apply.  I also have CDW coverage on my personal car insurance in Ontario, with a deductible.

 

However, I won't be in the US or Canada with this rental.  It's Australia, where I'll be driving on the opposite side of the road, in cities and in the outback, using roundabouts, and it feels a bit riskier than the usual driving experience.  I'd like to have zero deductible in case something unexpected happens.  That's what drove my thought to buy separate insurance that specifically has zero deductible. 

 

I'll call TD Visa to ask the specifics about coverage in Australia on their card -- specifically, if there's any issue with using the card's CDW insurance there, what the coverage specifics are, and what the deductible is.  That will inform the decision I end up making. 

 

 

 

 

 

 

 

 

[broberts]

42 minutes ago, lots-of-km2 said:

 

I'll call TD Visa to ask the specifics about coverage in Australia on their card -- specifically, if there's any issue with using the card's CDW insurance there, what the coverage specifics are, and what the deductible is.  That will inform the decision I end up making. 

 

Good thinking. Insurance tends to be a highly regulated business. Providers usually need to be properly registered in any jurisdiction in which coverage is provided.

[Fouremco]

Calling the TD is a good idea. In the mean time, the insurance certificate is online for you to peruse. It makes several references to rentals made outside Canada, but at no point does it mention that coverage in Australia or any other country is not available. 

 

Check with your personal automobile insurer and the rental agency to ensure that you and any other drivers have adequate third-party liability, personal injury and damage to property coverage. TD's policy only covers loss or damage to the rental vehicle.

 

If you haven't already, you might also want to check the Australia & New Zealand Port of Call forum to see if there is any information on car rentals.

[gnome12]

2 hours ago, broberts said:

Providers usually need to be properly registered in any jurisdiction in which coverage is provided.

Actually, it is in the jurisdiction in which the coverage is sold. 

[lots-of-km2]

3 hours ago, Fouremco said:

Check with your personal automobile insurer and the rental agency to ensure that you and any other drivers have adequate third-party liability, personal injury and damage to property coverage. TD's policy only covers loss or damage to the rental vehicle.

 

Yes.  And that also caused me to look at separate insurance.  From what little digging around I've done, the rental company issued CDW offered in Australia seems to includes third-party liability (not sure about personal injury and damage to property though).  If I were to rely on my credit card, I'd have to refuse the Australian coverage, which would leave me exposed when it comes to third-party liability. 

 

Guess I'll have to know and understand the nitty-gritty coverage (and cost) details of all the insurance options so that I can make an informed choice. 

[CDNPolar]

11 hours ago, lots-of-km2 said:

 

Yes.  And that also caused me to look at separate insurance.  From what little digging around I've done, the rental company issued CDW offered in Australia seems to includes third-party liability (not sure about personal injury and damage to property though).  If I were to rely on my credit card, I'd have to refuse the Australian coverage, which would leave me exposed when it comes to third-party liability. 

 

Guess I'll have to know and understand the nitty-gritty coverage (and cost) details of all the insurance options so that I can make an informed choice. 

 

Please let us know what you decide after the investigation.

 

I was under the impression (but that can be the same as "Assume"ing) that the CDW offered by the credit card did cover everywhere in the world, but now you have me concerned about the third-party liability.

 

I am a believer that the cost of insurance to ensure that you are covered for all perils is a necessary evil and especially in a foreign country, you want to ensure that you are properly covered and not making a decision over a "few dollars".

[RPen63]

It would be worth looking into an umbrella insurance policy.  Some cover all rental-car-related risks and could be a cost effective solution especially when the other benefits are considered.  Ask your home and/or car insurance provider about the benefits and costs.

[lots-of-km2]

12 hours ago, CDNPolar said:

I was under the impression (but that can be the same as "Assume"ing) that the CDW offered by the credit card did cover everywhere in the world

 

Unverified assumptions can have unintended and not-so-good consequences.

 

I've just confirmed that car rental CDW on my highly rated credit card does cover rentals in Australia but nowhere in the world will it cover third party liability, or accident-related property damage.  My next step is to check my current car insurance policy coverage, to see if/how it fills the coverage gaps on the credit card -- not just for rentals specific to Australia, but also in Canada and the US. 

 

3 hours ago, RPen63 said:

It would be worth looking into an umbrella insurance policy.  Some cover all rental-car-related risks and could be a cost effective solution especially when the other benefits are considered.  Ask your home and/or car insurance provider about the benefits and costs.

 

Thanks! I'll inquire out of curiosity, to see if there's a compelling benefit. 

 

 

 

[d9704011]

15 minutes ago, lots-of-km2 said:

nowhere in the world will it cover third party liability, or accident-related property damage.

Typically, TPL insurance is required by law in most countries.  What this means is that the insurance is included as part of the daily rental fee; seldom should you have to pay extra.

[mattR]

We usually buy the insurance through the rental company as I think there is a bigger chance of getting in an accident when driving places, you are unfamiliar with. It makes driving much more relaxed as if the car gets damaged oh well the rental company will take care of it and it won't affect my personal insurance rates if I do damage the car.  The last time my wife rented we booked through Expedia and they offered insurance for a pretty good price so we bought it.  Unfortunately my wife hit a rock on the narrow roads in Wales and put a dent in the bumper.  Enterprise took a 2000 pound deposit for the damage.  We have got most of it back but the Expedia insurance didn't cover loss of use and Enterprise is trying to charge me for 16 days of loss use.  I am still trying to get them to knock that down to a reasonable number of days.  Very much wish we had gotten her the insurance directly through Enterprise would have made everything much simpler. I understand that for longer rentals it can really add up but for just a day or two I think  it's so much more comforting to just get the rental car insurance from the agency. 

Edited March 5 by mattR

[CDNPolar]

4 hours ago, mattR said:

We usually buy the insurance through the rental company as I think there is a bigger chance of getting in an accident when driving places, you are unfamiliar with. It makes driving much more relaxed as if the car gets damaged oh well the rental company will take care of it and it won't affect my personal insurance rates if I do damage the car.  The last time my wife rented we booked through Expedia and they offered insurance for a pretty good price so we bought it.  Unfortunately my wife hit a rock on the narrow roads in Wales and put a dent in the bumper.  Enterprise took a 2000 pound deposit for the damage.  We have got most of it back but the Expedia insurance didn't cover loss of use and Enterprise is trying to charge me for 16 days of loss use.  I am still trying to get them to knock that down to a reasonable number of days.  Very much wish we had gotten her the insurance directly through Enterprise would have made everything much simpler. I understand that for longer rentals it can really add up but for just a day or two I think  it's so much more comforting to just get the rental car insurance from the agency. 

 

So, trying to follow here...

 

You took the insurance through Expedia for the car and NOT through Enterprise?

 

Tell me, with all the challenges you are having - the $2000 deposit for the damage, and the loss of use, would that have all been a non-issue if you bought the insurance through Enterprise and not Expedia?

 

This is a very interesting discussion to me because I am a firm believer in insurance and especially when you suggest that you are more likely to get into an accident in places that you are unfamiliar with.  I agree with that statement.

 

I want insurance that will cover all perils and not as you (unfortunately) are dealing with that is costing you out of pocket when you thought you were covered.

[d9704011]

14 minutes ago, CDNPolar said:

I want insurance that will cover all perils and not as you (unfortunately) are dealing with that is costing you out of pocket when you thought you were covered.

About the only way you can get that (especially outside of Canada and United States) is to purchase the most inclusive CDW the car rental company offers i.e. the package with zero payable.  Note that CDW is not 'insurance', it's a waiver of costs and expenses the rental company offers for a pretty big price.  On the other hand, you can pretty much eliminate risk... don't shred the tires going over security gates though, that is not covered.

[mattR]

16 hours ago, CDNPolar said:

 

So, trying to follow here...

 

You took the insurance through Expedia for the car and NOT through Enterprise?

 

Tell me, with all the challenges you are having - the $2000 deposit for the damage, and the loss of use, would that have all been a non-issue if you bought the insurance through Enterprise and not Expedia?

 

This is a very interesting discussion to me because I am a firm believer in insurance and especially when you suggest that you are more likely to get into an accident in places that you are unfamiliar with.  I agree with that statement.

 

I want insurance that will cover all perils and not as you (unfortunately) are dealing with that is costing you out of pocket when you thought you were covered.

Correct  I bought the insurance through Expedia a third-party insurance they offered not directly with Enterprise.  I received an insurance contract which if I had bothered reading did state that it did not cover loss of use.  I have not had to make any other claims on a rental car but assume that it would cover loss of use and much less paperwork if you bought insurance directly from the rental agency. 

[CDNPolar]

4 hours ago, mattR said:

Correct  I bought the insurance through Expedia a third-party insurance they offered not directly with Enterprise.  I received an insurance contract which if I had bothered reading did state that it did not cover loss of use.  I have not had to make any other claims on a rental car but assume that it would cover loss of use and much less paperwork if you bought insurance directly from the rental agency. 

 

Sorry for your experience with this but this just proves that the "market" offers what we think are insurance solutions, but it is really buyer beware at the extreme.

 

It is horrible to think you are covered and then find out you are not.

[lots-of-km2]

19 hours ago, mattR said:

Correct  I bought the insurance through Expedia a third-party insurance they offered not directly with Enterprise.  I received an insurance contract which if I had bothered reading did state that it did not cover loss of use.  I have not had to make any other claims on a rental car but assume that it would cover loss of use and much less paperwork if you bought insurance directly from the rental agency. 

 

This actually answers the precise question I originally asked in post 1.  Thanks!  I was trying to decide between renting a car and buying insurance from the rental agency, or renting the same car from the same rental agency but through Expedia, and buying the insurance thru Expedia.

 

The thread got diverted to "Why aren't you using your credit card for CDW?".  As the question was a fair one, I spent quite a lot of time trying to figure out whether relying on credit card CDW would be a good option for a rental overseas --- only to conclude that the coverage gaps and remedies are so murky and so overly complicated that my best option is to suck it up and rent the car and buy the insurance from the rental company....  for exactly the reasons you stated in post 15 and later.   Sometimes the certainty and simplicity are worth paying a couple of hundred dollars for. 

Edited March 6 by lots-of-km2

[CDNPolar]

12 hours ago, lots-of-km2 said:

   Sometimes the certainty and simplicity are worth paying a couple of hundred dollars for. 

 

My thoughts exactly.  I don't believe that insurance is a place that you try to save money.

 

We have price compared (off topic) cancel and interruption insurance and all the major providers are really in line in pricing.  We have found that when there is a cheaper option, there is a trade off in coverage.

 

I have always been "Foggy" with car CDW and the whole rental insurance thing and this discussion has really opened my eyes and will make me think now if renting outside of Canada in the future.

 

Paying a few hundred bucks now could save you thousands if something were to happen.

 

 

Edited March 7 by CDNPolar

[lots-of-km2]

7 hours ago, CDNPolar said:

I have always been "Foggy" with car CDW and the whole rental insurance thing and this discussion has really opened my eyes and will make me think now if renting outside of Canada in the future

 

Me too, very foggy. That's why I started this thread, because I didn't have enough facts or understanding to make a decision about how to approach risk mitigation when renting a  car in Australia. And I wanted to have input of other Canadian travellers for this. 

[3Shelaghs]

Do the math, how much cheaper is it really? We factor in the anxiety, confusion, emails, phone calls etc etc = headache. We have rented cars all over (including Australia), and learned very fast.... ash coverage in Iceland is a must, UK doesn't cover tires, load the car up with necessary insurance, forget your insurance from back home (unless in the US),  relax and enjoy the freedom of your own wheels. At the end of the day whenever we ran into rental issues, it was always easier to just add the car rental insurance and be done with it. Factor those nickels and dimes into the "overall experience".