Ever wonder if your car insurance covers you for some particular situation that comes up? While it does depend upon the details in your policy, knowing how coverage usually works when you rent a car or loan your vehicle to a friend is important. Handling these various scenarios best will protect your driving record and save you money too.
If you take car trips to other provinces or the United States, your existing insurance will cover you as long as you are making normal use of your car. Be sure you have your proof of insurance slip in the vehicle with you in order to avoid a fine in some jurisdictions.
When you rent a vehicle or drive one you do not own, your current auto policy does automatically apply to the other vehicle, both third party liability coverage and accident benefits. The coverage will have the same limits on them as if it were your own car, although you may want to consider opting for additional damage insurance for rental cars. This protects you for the whole term of your policy and saves you money every time you rent a car since this option is far cheaper than taking insurance from the rental agency.
If your car is in for normal maintenance or repairs, most policies do not provide a rental car during that time. On the other hand, if your car is being repaired due to a collision, then you may be entitled to the use of a replacement vehicle depending upon the circumstances of the accident.
Here’s a common situation where you need to be careful: When someone else drives your car you are still responsible for it. So if they have an accident and are found to be at fault, it goes on your record and it is your rates that will likely go up. Similarly, if you borrow somebody’s car, you are covered by their insurance.
If you have any other questions about car insurance coverage options in Ontario, or would like some no-obligation quotes, feel free to call Mitchell & Whale Insurance Brokers at 1-800-731-2228 or email us at firstname.lastname@example.org. We’d be happy to help.