The Car Rental Agreement and the Canadian Visitor to the United States of America


The Canadian Visitor to the United States of America may occasionally find it necessary to rent an automobile for a short period of time, typically when arriving at a destination American airport or for the occasional trip within the U.S. The rental car company agent will invariably try to offer (or better stated try to convince you of the need for) car rental insurance, both in terms of liability insurance and car loss or damage or replacement coverage (CDW/LDW), which when added up, can easily double the cost of the daily car rental. As we typically have our own automobile insurance in Canada, we will often decline the coverages with the expectation that we are fully covered in the event of an accident. I have often walked away from the car rental counter after getting the keys to the rental vehicle with a “nagging” feeling, often wondering whether or not that is truly the case. I decided for my own edification to examine the issue. Hopefully others will benefit my analysis and feel more comfortable when “pressed” at the car rental agency to make the decision of whether or not to initial that box on the car rental agreement which states “Coverage Declined”. READ ON

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