Car Hire Insurance USA & Canada | Car Hire Excess | iCarhire© (2024)

FAQs

Do you have to pay excess on a hire car? ›

When you hire a car, cover often called a 'damage waiver' is usually included. However, even though this is in place, you're still liable to pay the first part of the claim – the 'excess'.

Rental car insurance can be expensive — it can easily double your rental costs if you purchase a full coverage package. You also technically don't need to purchase insurance since rental cars are automatically covered for the minimum requirements in their state. However, it can still be worth it in some situations.

Rental companies in the USA and Canada will usually require you to have Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW) insurance in order to be able to take the car. These policies are usually between £15 and £25 per day from the rental company.

It isn't a requirement for Canadian drivers to purchase additional insurance from the rental car company when renting a car. However, you do need to have ample insurance that will cover you in case of an accident.

Most comprehensive travel insurance policies (both domestic and international) cover car hire excess either automatically or for an additional premium. However, keep in mind that there'll likely be a limit on how much your travel insurer will pay towards the hire car excess, and these limits can vary by insurer.

Excess Cover or Excess Reduction Insurance is designed to protect you against any excess that you might have on your rental car. Excess is the amount that you are liable to pay should you be in an accident of if your rental car is damaged. Excess is sometimes also referred to as a deductible.

What's the difference between LDW and CDW? CDW covers damage to the rental vehicle in case of an accident. LDW offers the same protection, as well as coverage if the car is stolen. Since these terms are sometimes used interchangeably, pay attention to the fine print to know what kind of coverage you're getting.

Rental car insurance is there to provide financial protection to drivers if their rental car is damaged or stolen. But sometimes, you can save money on your rental by opting out of this additional coverage.

If you are traveling to Canada by car, whether in your vehicle or a rental car, your U.S. insurance will usually protect you with the same coverages and limits that you have at home.

How does car rental insurance work in Canada? ›

With most rentals in Canada, you'll be given the most basic insurance with each vehicle, third-party liability coverage. This policy is to cover other vehicles that you may collide with.

If your personal auto insurance includes Endorsem*nt Q.E.F. 27 “Civil Liability for Damage to Non-Owned Automobiles,” you are covered for damage to the rental, but only in Canada and the U.S. It's exactly the same as your coverage on your own vehicle, including the same options and deductibles.

It's also worth confirming that all your coverage transfers to Canada: liability, collision, and comprehensive (if you have it). If your visit to Canada will extend beyond 90 days — or if you're moving to Canada — you should purchase a Canadian car insurance policy.

What Does Damage Waiver Cost? The cost of Damage Waiver varies by location and vehicle type. The daily cost is between $9.99 and $39.99 (Canadian Dollars) per day.

Usually, rental companies in Canada will require some foreign customers to have CDW and LDW insurance in order to be able to take the car. Note also that depending on the country and the state in which you are traveling, you may also be offered a Supplemental Liability Insurance (SLI) product by the rental company.

In the context of car rental, excess is the amount of money for which the renter is held responsible under the terms of the car rental agreement as a result of the loss of or damage to the rental vehicle. This can include fire, vandalism, theft, and loss of use depending on the supplier.

Excess Protection

The Damage Waiver, included in your rental, reduces what you are liable to pay if the car is damaged or stolen during your hire period. Damage Waivers come with an 'excess', which is the amount you will have to pay for damage repairs before the waiver kicks in.

Yes, some policies might exclude certain types of claims or have limitations on the amount covered. Excess protection can be a valuable tool for managing the financial burden of insurance claims.

How to avoid extra driver fees. Joining a car rental company's loyalty or rewards program can sometimes eliminate extra driver fees for spouses or domestic partners. Companies like Dollar, Hertz, Sixt and Thrifty offer this perk for members.