Rental insurance, explained

Option 1: our Collision Damage Waiver

$14.99 a day. Despite the name, a waiver is not insurance — it is an agreement that we will not pursue you for damage to our vehicle, subject to a deductible and to the exclusions in the rental agreement.

Ours carries a $2,000 deductible. That means if the vehicle is damaged, stolen or written off, you are responsible for the first $2,000 of the claim. If the damage comes to less than that, you pay the repair in full — a claim is only opened above $2,000.

Security deposit with our waiver: $1,000, held at pick-up and released on return.

Option 2: your own auto policy

$5.00 a day on our rate, because you are carrying the risk. If you own a car in Ontario and hold collision coverage, your policy will often extend to a rental — but you must confirm it, and some policies exclude larger vehicles.

Your own deductible applies, and any claim goes through your insurer, which means it can affect your renewal. Call your broker and ask two things: does my collision coverage transfer to a rental vehicle, and what is my deductible.

Security deposit using your own coverage: $500.

Option 3: your credit card

Many premium cards include rental collision coverage if you pay for the rental with the card and decline the rental company's waiver. It is real coverage and it can be good.

Three things people get wrong about it:

• It is almost always collision only. Liability — damage to other people and their property — is not included. That is the expensive half.
• There are exclusions. Large vans, luxury vehicles and long rentals are commonly excluded. Card coverage frequently caps out around 30 or 31 consecutive days.
• You must decline our waiver for it to apply. You will sign a form doing so.

Call the number on the back of your card and ask them to confirm in writing. We may ask for proof.

What none of them cover

Regardless of which route you take, these remain yours under our agreement: tires, wheels, underbody, mirrors, windows and windshield; lost keys; personal belongings left in the car; and any damage from prohibited use. See sections 2 and 3 of the terms.

Large SUVs and vans are different

For any seven or eight-passenger vehicle we require written proof of your own insurance with at least $1,000,000 transferable liability coverage. There is no waiver option for these vehicles and we do not sell supplemental liability on them. If your policy does not transfer, we cannot rent you one.

How to choose in one sentence

If you own a car and your broker confirms the coverage transfers, use your own policy and accept your own deductible. If you do not own a car, take our waiver and know that the first $2,000 is yours. If you are relying on a credit card, get the confirmation in writing first — and remember it will not cover liability.

Common questions

What does CDW actually cover?

It waives our right to pursue you for damage to the rental vehicle, subject to a $2,000 deductible and to exclusions including tires, wheels, glass, underbody and lost keys. It is not insurance and does not cover liability to other people.

What does a $2,000 deductible mean?

You are responsible for the first $2,000 of any claim. If the repair costs less than that, you pay it in full — a claim is only opened above $2,000.

Is my credit card insurance enough?

It covers collision damage to the rental car, usually not liability, and commonly excludes large vans, luxury vehicles and rentals beyond about 30 days. Confirm with your card issuer in writing before relying on it.

Will using my own insurance raise my premium?

Only if you make a claim. Simply using your policy to cover a rental does not, but any claim goes through your insurer like any other and can affect your renewal.