If you don't own a car and therefore don't have a current car insurance policy, the answer is clearly yes. Without coverage, in the event of an accident, you will be required to reimburse all repair costs for the rented vehicle and in the event of a total loss, the bill could be substantial.
Also, note that each rental company has its own clauses in terms of insurance contracts, so make sure you are properly protected.
However, if you have a vehicle that is already insured, you may not need to use the rental agency's insurance. Here are some helpful details that may save you unnecessary costs.
Does your Car Insurance Policy Include Endorsement 27?
Check with your broker to see if you have FAQ 27 coverage on your policy. This endorsement covers damage that you could cause to the car that you and your spouse are renting, according to the coverage that applies to your own car.
Also, it is very important to verify the amount of the limitation on your contract, because it represents the maximum value that your insurer will pay, and this in Canadian dollars. Also, look at the time period for which this endorsement applies. Some insurers may allow you to rent for a maximum of 30 days.
Regarding the civil liability insurance on your automobile insurance contract (FAQ#1), we recommend that you verify that your coverage amount is sufficient. We suggest a minimum coverage of 2 million. Indeed, in some Canadian provinces and in most American states, you could be sued for bodily injuries caused in an accident.
Travelling Outside Canada and the United States
If you are renting a vehicle outside of Canada and the United States, then you will most likely need to purchase insurance from the rental company.
For most Quebec insurers, the territorial scope of coverage is limited to Canada and the United States. So, check with your broker to see what your policy covers before you leave.
Another important point to check, this time with your bank, is the terms of your credit card. Some cards offer auto insurance. So, if you pay for your car rental with your credit card, you may be covered in case of an accident. There's no need to pay twice: ask about the conditions.
Once you've done this, you'll be able to drive with peace of mind and enjoy your vacation.