Community Operations
Consumer Affairs Tip Sheets
Car Rental
If you were renting your car for a fraction of its cost to a total stranger for a few days, you would want to protect your interest in the car. Right?
It should come as no surprise that a car rental company feels the same way. This is the reason you will be required to sign a Car Rental Agreement before the car is turned over to you.
The rental agreement will explain:
- that you are 100 per cent responsible for returning the car (or having it returned) in the same condition as when you took it
- the degree to which this liability may be modified (by purchasing more insurance, etc.). As with any document you sign, you should read and understand the Car Rental Agreement. Many of us, however, have a hard time reading and understanding the complex and finely printed conditions of the agreement.
You will most likely be asked to agree:
- that the car was in good condition when you rented it
- to return it in the same condition, with all the accessories and equipment
- to pay the renter for all loss or damage to the car and its equipment
- to pay all costs involved in returning the car to the renter
- to pay the renter for loss of use while any damage is being repaired
- not to take legal action against the renter for wrongful arrest. (The renter can send the police to find you if you do not return the car to the right place by the right time.)
You may also be asked to agree:
- not to use the car as a taxi, in a speed race, on gravel roads, out of the province or territory, or while you are under the influence of alcohol
- not to let anyone under the age of 21 drive the car
- to let only those named in the rental agreement drive the car.
INSURANCE
In Canada, automobile liability insurance is compulsory. The owner of the car is responsible for insuring the car.
Car rental companies (as owners) must carry a minimum of insurance for bodily harm and property damage. The rental agreement will usually state the amount of insurance in force and that this insurance protects you, the car renter, and any other authorized drivers. If you own an automobile, your own policy may provide additional protection for you while you are driving a rented vehicle. Some credit card companies also provide coverage. Check with those companies you deal with so that you don't buy extra coverage you don't need.
Car rental companies are not obligated to buy insurance against physical damage to rental cars which could be caused by collision, fire or theft. You are generally responsible for any and all damage done to the rental car while you have it except when the agreement specifically limits your liability for certain types of damage.
Some car rental companies may offer personal accident insurance to their customers. This usually costs $1 to $3 per day. People who purchase this insurance should receive complete written information giving a detailed description of the coverage. You should review special agreements for extra insurance with the car rental company staff. Be sure you understand what you are not covered for.
For more information, call collect or e-mail our Consumer Affairs Officer at MACA headquarters in Yellowknife at: (867) 873-7125.