Those final few minutes at the car rental counter can be stressful. Should you pay extra for coverage the rental company offers or do you dare drive without it? No one wants to pay for repairs to a vehicle they don’t own, but you may already be covered for such damages. Save yourself the stress by doing a little research before you reach the rental counter.

Know the facts

When the rental company offers you extra coverage, it’s not actually insurance you’re paying for; it’s a collision-damage waiver. The waiver covers the cost of repairs to the rental car if you’re in an accident. However, if you collide with another vehicle, it won’t pay for damage to the other driver’s car or injuries to the passengers. Those damages would be covered by your own auto insurance.

Renting on vacation

If you’re renting a car while on vacation, check with your credit card company. They may provide insurance coverage for your rental vehicle, subject to certain stipulations and limitations.

Standard auto insurance policies don’t usually cover damages you cause to a rental car, so check your policy or call your insurer for details on your coverage. If you’re on vacation and your auto insurance policy doesn’t cover rental cars, you may want to purchase the rental company’s waiver. Or, if you rent frequently, talk to your insurer about adding a “27 endorsement” to your policy. The 27 endorsement covers damages up to $50,000 CDN for any vehicle you rent in Canada or the U.S.

Renting after an accident

Some auto insurance policies extend coverage to vehicles that you rent while your own car is being repaired after an accident. When you call to make your claim, ask if your current coverage will extend to the rental vehicle you’ll have while your car is in the shop.