Whether you’re planning a family vacation, a road trip along the coast, or just need a vehicle for a few days, renting a car comes with one big question: do you need extra insurance? With traditional rental companies and car-sharing platforms like Turo both available in Newfoundland & Labrador, it’s important to understand your coverage before you drive away.
Do You Need Rental Car Insurance?
In many cases, your personal auto insurance policy extends to a rental car, as long as it’s used for personal, not business, purposes. But if your policy doesn’t include comprehensive coverage, you could be left paying out of pocket for damage, theft, or liability after an accident. That’s why it’s worth reviewing your options before signing anything.
Three common ways to insure a rental car:
- Through your auto policy: Adding a rental car rider (endorsement) transfers your coverage to a rental vehicle. This option is usually affordable, but make sure you understand the limits and exclusions.
- From the rental company: Convenient, but often pricey. These packages may include roadside assistance, yet they can have restrictions or gaps like limited lawsuit protection.
- Via your credit card: Many cards offer rental car insurance if you pay with that card and decline the rental company’s insurance. Coverage is usually secondary and limited, so it shouldn’t replace a full policy.
Tip: Always confirm your coverage with your broker before renting, especially if you’re driving a specialty vehicle like a truck, trailer, or luxury car.
Key Considerations Before You Rent
- Check if your current policy extends to rentals.
- Make sure your coverage matches or exceeds the value of the rental.
- Ensure liability, collision, theft, and vandalism are included.
- Compare rental insurance prices online and watch for deals.
- Ask how a rental car claim could impact your future rates.
Talking to your Account Manager before you rent is the easiest way to avoid costly surprises.
What About Turo?
Turo is often called the “Airbnb of cars.” Instead of going through a rental agency, you can book a vehicle directly from a local owner through Turo’s platform. It can be more flexible and affordable, but there are some insurance differences you should know.
For vehicle owners listing on Turo:
- Turo provides insurance coverage through Economical Insurance.
- This coverage is separate from your personal auto policy and only applies while your car is rented.
- Always check with your broker before listing to avoid coverage gaps.
For renters using Turo:
- Turo provides liability protection and accident coverage up to policy limits.
- Physical damage depends on the protection plan you select when booking.
- Your personal auto insurance may still apply, especially for liability.
- Always confirm how your policy interacts with Turo’s coverage before renting.
Final Word
Rental cars and platforms like Turo are great options for exploring Newfoundland & Labrador, but insurance can be tricky. The best way to stay protected is to understand your coverage and talk to your Account Manager before making a decision. That way, you can enjoy the trip without worrying about unexpected costs.
LET'S TALK COVERAGE
Get coverage for your business, home, and car—with advice you can trust.
About Wedgwood Insurance
Wedgwood Insurance has offices in St. John’s & Corner Brook and is Newfoundland & Labrador’s largest independent insurance broker. We provide straightforward home, auto & business insurance advice.
With over 350 Google My Business reviews, experience the Wedgwood difference with expert advice from our dedicated team. We ensure that every client has the coverage that best suits their needs through upfront complimentary consultations and midterm reviews.
Contact Us
