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Here’s what you need to know about rental car insurance

The flight’s booked, the hotel too. Now for the big question: Do you rent a compact sedan or go big with a Mustang convertible? Make sure that your holiday is everything you want, and don’t forget to get peace of mind. If you are thinking about renting a vehicle on your next vacation, remember rental car insurance. Where can you get rental car insurance?

There are a few places to look, but beware: Not all coverage is the same.

Vehicle rental company

Rental car companies cover some damages with a Collision Damage Waiver. The waiver transfer’s the responsibility to pay for damage to the auto rental company. However, there can be exclusions, so read the details carefully.

Your bank

Some credit card providers offer rental car insurance. But there may be limitations or conditions. For example, your credit card provider may only cover rental vehicles from certain car rental companies. Therefore, calling your bank to learn about coverage conditions is best.

Auto insurance provider

Talk to your auto insurance provider, as most sell Legal Liability for Damage to Non-Owned Automobiles. It is an additional policy for vehicles you do not own and is only valid in Canada and the USA for up to 30 consecutive days.

CAA Travel Insurance

CAA Travel Insurance now offers Rental Vehicle Damage Insurance. Keep all your insurance in one place with CAA. Plus, if you get in an accident and are covered with CAA, it will not count against your auto policy. If anything goes wrong, you know CAA will be there to help and advocate for you. CAA’s Rental Vehicle Damage Insurance covers any physical damage or loss of a rented vehicle. It also helps cover expenses like towing. The best part? CAA Members save up to 20% on their policy1.

person driving a car

Get a quote

Book your car rental with travel insurance online or contact a CAA Travel Consultant to get your travel insurance.

CAA Travel Insurance is underwritten by Orion Travel Insurance Company, a CAA Company. Certain exclusions, limitations and restrictions apply. Subject to change without notice. A Medical Questionnaire may be required to purchase travel insurance. Quotes are valid for 30 days. 


  1. Applies to CAA Members in good standing (CAA Membership dues paid in full by Membership expiry date). Up to twenty percent (20%) savings applies to the total premium excluding applicable taxes. Minimum premium applies. Subject to change without notice. Excludes Visitors to Canada Insurance. CAA Everyday, Classic®, and Plus® Members save 10%. CAA Premier® Members save 20% at CAA Stores or by calling 1-800-267-8713. CAA Premier Members save 10% and earn 10% in CAA Dollars® when booking online.


®CAA trademarks are owned by, and use is authorized by, the Canadian Automobile Association. 

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