Third Party Liability on a Rental

[dtom201]

I’m travelling to the US this month for a week and looking at renting a car. I have auto coverage for my vehicle in NL and a credit card that has collision coverage up to $85k MSRP. The card coverage does not include third party liability. I called RBC Insurance and they advised me that I can add Endorsement 27 for a little bit more on my policy and then I would have the third party liability coverage transferred from my existing policy.

When I reconfirmed with the agent that my full $2 million liability would apply, he told me no, it would only be the minimum coverage for that province/state that applies. I’m travelling to Florida and their minimum is $10,000, so he’s telling me that this is all I would get that would cover me. Is this true? Why wouldn’t I just pay for my liability coverage through the rental agency? At least they offer $300,000.

Something doesn’t sound right with this.

 

[nataly87]

@dtom201 So this is ‘right’ but based on who your broker has placed you with. Can you buy an extension on your existing liability to increase it via broker?

I would be very cautious of CC coverage as the conditions and terms tend to be more limited than via a regular auto policy. Also they are harder to find and understand.

300k (IMHO) is chicken scratch and anything less that 2 million is not worth buying.

Also make sure what currency amount the policy covers you in if bought in Canada.

Good luck.

 

[sovereignone]

@dtom201

I called RBC Insurance and they advised me that I can add Endorsement 27 for a little bit more on my policy and then I would have the third party liability coverage transferred from my existing policy.

I don't believe this is correct. Endorsement 27 is Legal Liability for Damage to Non-Owned Automobiles. It's not liability towards third parties.

Generally the rental agency is required to supply liability up to the provincial/state minimums, but they can include more. If the rental agency has confirmed they offer $300,000, that should be fine.

What you can sometimes add to your policy would be endorsement 2, Providing Coverage When Named Persons Drive Other Automobiles or Rent or Lease Other Automobiles. This will usually extend your liability and accident benefits coverage when you're driving other vehicles, though usually secondary to the coverage applied to the vehicle itself.