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40 W e s t W o r l d >> s u m m e r 2 0 1 4 istock IF YoU HAVe CAr INsUrANCe on your own vehicle or use a major credit card, you may think you can safely decline optional insurance whenever you rent a vehicle. In fact, it pays to do a bit of research before you reach the rental counter. drive smart Are You Covered? Do your research before you buy — or turn down — rental vehicle insurance by Ian MacNeill Carding it Depending on your credit card, you generally receive some degree of protection automatically when you rent a vehicle using your card, at no additional cost – which certainly makes this the most convenient and affordable option. To access your credit card's protections, you typically need to pay for the entire rental with that card, be the main driver listed on the rental agreement, and decline the relevant optional insurance offered by the rental car company. But keep in mind that the amount of coverage from card companies can vary, and it comes with limitations and exclusions. In general, credit cards cover the collision damage waiver or loss damage waiver portion of insurance but not third-party liability. In other words, costs related to injuries or deaths of drivers or passengers may not be covered, and that's invariably where the largest payouts occur. Credit card companies may also restrict the type of vehicle you can rent, where you drive it and for how long. For example, some companies exclude trucks or any vehicle used in moving, as well as motorcycles and luxury cars. And coverage can be voided if you drive on unpaved roads or those "not regularly maintained," or if you violate traffic laws. If such conditions don't affect your own situation, you may find your credit card's coverage to be all you need, but it's always a good idea to read the fine print (or better yet, contact your credit card company) to ensure you're well protected. Autoplan options If you own an insured vehicle, you can obtain a more inclusive range of cover- age through ICBC, but it's usually part of an optional package. According to Adam Grossman of ICBC, "If you have ICBC's rental-vehicle coverage, either as a standalone policy you've purchased or if it's included under your existing coverage — such as our roadstar, roadside Plus or Loss of use coverage – then you are covered for a rental vehicle anywhere in North America for up to 30 days." If you need the vehicle for more than 30 days, you can purchase additional coverage at $10 a day, or purchase multiple rental contracts that do not exceed 30 days each. Go private In B.C., private companies offering supplemental insurance also provide comprehensive rental car coverage packages, which can mean that collision, comprehensive and third-party liability are all transferred over to the rental vehicle. If you plan to rent a car in Canada or the u.s., ask your insurance advisor about rental vehicle protection. For a few dollars a day, their policy may be more affordable than what's being offered by the rental car company while providing higher coverage limits than your credit card company. A rental vehicle policy can be purchased for any rental period of 30 days or less. BeFore YoU Go Ultimately, it's best to check into your coverage before arrivi ng at the rental counter where you may feel pressured into making a quick decision. "If there is no back-up or alternate coverage available through existing insurance, credit card or other sources, then, albeit expensive, the renter must protect him or herself and bite the bullet by taking the provider's insurance," advises Frank Fotia, COO at CAA National in Ottawa. It's worth noting that whatever coverage you may have of your own, either through your credit card or home-based insurance provider, some jurisdictions — Costa Rica, for example — do not allow renters to decline third-party liability insurance. Also, almost all credit cards exclude some countries from collision damage waiver coverage — among them Ireland, Israel and Jamaica. Again, it pays to know before you go. ℹ Members save up to 10% on Optional Advantage Car Insurance from BCAA: bcaa.com/car p40-41_Drive Smart.indd 40 14-04-23 12:21 PM