Rental car insurance in Ontario

You may need rental car insurance or an equivalent protection option if you rent or borrow vehicles. Your personal auto policy may provide some liability protection, but it may not automatically cover damage to the rental car. OPCF 27, a rental company loss damage waiver, or credit card rental protection may help fill that gap.

OPCF 27 is an Ontario auto endorsement called Liability for Damage to Non-Owned Automobiles. It can extend physical damage coverage to certain vehicles you rent or borrow, subject to the policy wording, limits, deductibles, vehicle type, territory, and exclusions. It is not automatically included on every policy. 

These two endorsements are frequently confused, but they do completely different things.

• OPCF 20 (Loss of Use): Pays the cost to rent a temporary vehicle if your own car is in the shop after an insured claim (like an accident or theft).
• OPCF 27 (Liability for Damage to Non-Owned Automobiles): Provides physical damage coverage for the rental car itself if you crash it while on vacation or on a business trip.

No. A loss damage waiver is a rental company agreement that may waive your responsibility for certain damage to or theft of the rental vehicle. It is contract based and can include exclusions. It does not replace the need to understand liability, accident benefits, personal belongings, additional drivers, or travel territory.

Some credit cards include rental vehicle damage protection, but conditions vary. Many require the full rental cost to be charged to the card and may exclude certain vehicle types, long rentals, luxury vehicles, trucks, vans, or rentals in certain countries. Read the certificate before relying on it.

Only if you have the right coverage. Loss of use or transportation replacement coverage can help pay for a rental vehicle after a covered claim. This is different from OPCF 27, which is about legal liability for damage to a non-owned vehicle you rent or borrow.

It may be worth considering if you rent or borrow vehicles regularly. It can be convenient and cost-effective, but limits and exclusions matter. Your advisor can compare OPCF 27 with rental company and credit card options so you understand what each one does and doesn’t cover.

Coverage can be affected if someone who is not listed on the rental agreement drives the vehicle. Before driving away, confirm every driver who may use the rental is allowed under the rental contract and review how your auto policy, OPCF 27, credit card protection, or rental company waiver applies.

Usually, no. The OPCF 27 endorsement on your personal auto policy protects you when driving a non-owned vehicle, but it typically has a Gross Vehicle Weight Rating (GVWR) limit (often 4,500 kg). Most moving trucks, like U-Hauls, exceed this limit. If you are renting a large commercial truck, you will generally need to purchase the rental company’s specific damage waiver.

Your Ontario auto policy and OPCF 27 endorsement will generally provide coverage when renting a vehicle anywhere in Canada and the United States. However, they almost never provide coverage overseas. If you are renting a car in Europe, Mexico, or elsewhere globally, you will need to rely on premium credit card coverage or purchase the rental company’s insurance.

Confirm who can drive, where the vehicle can be taken, what happens after damage or theft, whether there are administrative or loss-of-use charges, which coverage you’re accepting or declining, and whether your existing policy, endorsement, or credit card will respond.

Rental car coverage may offer limited or no protection for personal belongings stolen from the vehicle. Depending on the situation, home, condo, or tenant insurance may respond, subject to deductibles and policy conditions.

The reform changes Statutory Accident Benefits under Ontario auto policies. Medical, rehabilitation, and attendant care benefits remain mandatory, while many other accident benefits become optional. If you rely on your own policy while renting or borrowing a car, review optional benefits before renewal so you understand what follows you after an accident.