If you carry physical damage coverage on your automobile insurance, the addition of insurance for a rental vehicle makes great sense, and is very affordable. There are two separate auto insurance endorsements available in Ontario, both involve coverage for a rental vehicle but are intended for different purposes.
OPCF 27 Liability for Non-Owned Automobiles
You may purchase insurance coverage directly through your personal automobile insurance policy which will extend physical damage coverage from your policy when you rent a vehicle while on vacation, this endorsement is referred to as an OPCF27. Your insured vehicle cannot be driven while the coverage is being extended to include the rental car. There are also limitations regarding the value and length of time for the rental, who may be a driver of the rental, and the region or location of the rental. While this option will often be cheaper than buying the insurance coverage from the car rental company, it is be automatically included for drivers who have a Gold Visa or equivalent credit card under your credit agreement. We recommend checking with your credit card supplier, but if there is no coverage available than it would be best to buy from your own insurance policy. The savings will be well worth it versus the rental company fees, as long as your policy limitations are not a concern and fall within your needs during the time of travel. One great benefit is that this endorsement allows for the same rental coverage throughout the current term of your auto insurance policy at no additional cost, meaning you could rent a vehicle on two or three occasions during the year while only paying for the coverage once! What a huge bonus if you enjoy travel.
OPCF 20 Transportation Replacement Coverage
This option is intended to provide a rental vehicle to the owner of an insured automobile while the car is being repaired due to damage from an insured peril. This could include an at-fault auto accident, a comprehensive claim such as hitting a deer, or even the theft of your vehicle as it gets you into a car without the normal 72 hour waiting period at the time of theft (these are just a few examples). Your auto insurance policy should automatically provide coverage for a rental if you are not at fault in an accident. We understand that for those who only have one vehicle in the household, or who rely on their vehicle to commute for work or run errands regularly it is essential to not be without a vehicle. For those drivers, this endorsement is a must have, and is highly recommended. The additional premium is very reasonable, but be aware of the limitation which specifies the maximum amount to be paid for a rental during this time (it is normally sufficent time to allow for repair of your car, or for your insurer to provide a settlement if your vehicle is deemed a write off and not repairable).
If you did not purchase either additional coverage at the time of application, no need to worry. These changes can be added to your auto insurance policy at any time mid-term, but prior to the rental. Speak with an Erie representative to make these changes. We advise that you review your policy coverage annually to determine if such coverage should be added, or is no longer needed can be deleted at some point. Get to know your insurance better, we help you learn!
Article Written by Darcy Johnson
Erie Mutual Insurance Manager – Sales, Marketing & Business Development
Please contact us with any questions you may have about this or any other topic related to your insurance.