Will my credit card cover me if I crash a rental car?

We’re flying to Newfoundland in September and renting a car there for three weeks. My husband and I aren’t sure if we should buy the expensive insurance they sell at the counter. I think we’re fine with our credit card’s insurance – it’s a fancy points card so I’m assuming it covers rental car insurance. But my husband thinks we should buy the extra insurance just to be safe. – Briana, Toronto

Before you charge off in a rental car without buying their insurance, check with your credit card company to make sure you’re covered.

“Not every card has collision and damage protection but most premium travel ones do,” says Matt Hands, senior business unit manager of insurance at Ratehub, a rate comparison site. “It’ll say in the pamphlet that came with the card, or you can call and actually ask somebody.”

Buying the insurance they sell at the rental counter can cost $35 (or more) per day, depending on what you get, and a lot of people just buy it to be safe – even though they may already be covered by credit cards or their car insurance, Hands says.

So what do rental car companies offer? It varies. Budget Canada, for instance, sells a collision damage waiver (CDW), personal effects and accident benefits insurance and liability insurance.

A CDW covers the damage to the rental car. Otherwise, you’re on the hook for it.

Accident benefits insurance covers death or dismemberment. Personal effects insurance covers personal items, like cameras or laptops, that may be damaged or stolen.

Liability insurance covers you if you cause injury or damage to property, including another vehicle, over the amount included in the rental agreement.

Canadian rental companies provide some liability coverage, but companies in other countries might not.

Typically, you’ll get the minimum amount of liability coverage required by the province – in Ontario, it’s $200,000 – included in the rental price. At the counter, you can buy more.

READ MORE HERE: 

Tesla heads down new road with car insurance in California

Michael Liedtke and Tom Krisher, The Associated Press

SAN FRANCISCO — Tesla owners in California can now buy insurance from the electric car company in what may be the first step toward the unconventional automaker providing coverage for a fleet of driverless taxis.

The expansion announced Wednesday comes four months after Tesla CEO Elon Musk told analysts the company would branch into insuring its own cars for people who buy or lease them.

Musk believes Tesla has learned so much about its cars that it will be able to offer rates 20% to 30% below those offered by traditional insurers. That will likely to appeal to Tesla owners who have been complaining about being charged too much for coverage.

Although the insurance is only being sold in California to start, Tesla plans to offer coverage throughout the U.S. at a later undisclosed state.

The policies will only be for personal usage of the Tesla cars, but the Palo Alto, California, company also wants to eventually offer commercial policies.

It’s a move Tesla may have to take if Musk is to deliver on his promise to begin selling Tesla vehicles capable of navigating roads without a driver behind the wheel within the next 16 months. Self-driving car experts believe that is unlikely to happen, but Musk has promised to have a fleet of robotic Teslas operating as part of a ride-hailing service by the end of next year.

To make that vision a reality, the driverless cars will need commercial insurance — something no company but Tesla may be willing to provide, given it probably will be exploring uncharted territory if it’s able to dispatch fully autonomous vehicles to pick up passengers.

Selling insurance will also provide Tesla with another source of revenue as it tries to prove it can consistently make money. The company was profitable during the last half of last year — the longest stretch of prosperity in its history — but has lost another $1.1 billion during the first half of this year. Those losses could rise even higher if Tesla miscalculates the risks of selling auto insurance.

Tesla’s disappointing financial performance and escalating doubts about its future prospects have caused its stock to plunge 35% so far this year.

Tesla believes it has learned so much about the technology, safety and repair costs of its cars that it will be able to figure out the proper prices to charge for each policy. Its electric cars are equipped with so many sensors that the company could theoretically monitor whether the drivers are prone to chronic speeding or habitually engaging in other risky behaviour, but Tesla says it won’t do that.

ICBC asking drivers & parents to keep kids safe as school returns

ICBC asking drivers & parents to keep kids safe as school returns

Next week, children and adults return to school and work which creates congestion on our roads. ICBC is asking drivers to leave extra travel time, stay focused on the road and watch for children especially around school zones.

Every year, 380 children are injured in crashes while walking or cycling and five are killed throughout the province.*

Police and Speed Watch volunteers will be closely monitoring drivers’ speeds in school zones to help children get a safe start to the school year.

Parents are encouraged to review ICBC’s tip sheet with their children and go over their daily route to and from school with them.

ICBC’s tips for drivers:

  • If you drop off your child in a school zone, allow them to exit the car on the side closest to the sidewalk. Never allow a child to cross mid-block.

  • If a vehicle’s stopped in front of you or in the lane next to you, they may be yielding to a pedestrian, so proceed with caution and be prepared to stop.

  • Watch for school buses and when their lights are flashing, vehicles approaching from both directions must stop.

  • Before getting into your vehicle, walk around it to make sure no small children are hidden from your view. Always look for pedestrians when you’re backing up.

  • In residential areas, a hockey net or ball can mean that kids are playing nearby. Watch for children as they could dash into the street at any moment.

  • Remember that every school day, unless otherwise posted, a 30 km/h speed limit is in effect in school zones from 8 a.m. to 5 p.m. In playground zones, a 30 km/h speed limit is in effect every day from dawn to dusk.

ICBC provides free road safety educational materials to B.C. schools to help students from kindergarten to grade 10 learn about road safety topics unique to their grade level using fun and interactive activities.

Editor’s note: Local road safety coordinators across the province are available for interviews. Please contact Lindsay Wilkins.

Statistics:

  • In the Lower Mainland, 300 children walking or cycling are involved in crashes every year.
  • In Vancouver, 61 children walking or cycling are involved in crashes every year.
  • On Vancouver Island, 65 children walking or cycling are involved in crashes every year.
  • In Victoria, 12 children walking or cycling are involved in crashes every year.
  • In the Southern Interior, 49 children walking or cycling are involved in crashes every year.
  • In Kelowna, 17 children walking or cycling are involved in crashes every year.
  • In North Central B.C., 16 children walking or cycling are involved in crashes every year.

Notes about the data:

Children defined as age five to 18. Pedestrian includes a person in or on a wheeled recreational device or wheeled toy. This includes rollerblades, a skateboard, scooter, unicycle or similar wheeled device.

*Crash and injury averages based on 2014 to 2018 data reported by ICBC. Fatal averages based on 2013 to 2017 police-reported data.

ICBC: Last long weekend of summer could spell 2,200 crashes on B.C. roads

ICBC: Last long weekend of summer could spell 2,200 crashes on B.C. roads

Whether you’ll be driving a car or riding a motorcycle over the long weekend, ICBC is asking you to share the road and do your part to drive smart.

Every Labour Day long weekend, approximately five people die and 610 people are injured in 2,200 crashes across the province.*

On highways, expect to see many RVs, motorcyclists and trucks. If you’re staying in town, expect more pedestrians and cyclists on the road. The key to sharing the road safely is to stay focused on driving and look out for the road users around you. Avoid distractions which will take your eyes off the road and your mind off driving.

ICBC’s drive smart tips for sharing the road:

  • You can only see motorcycles when you really look for them so make a game of it. Ask every passenger to guess how many motorcycles you’ll see during the drive and then count them as you travel. Leave plenty of space when passing a motorcycle and allow at least three seconds of following distance.

  • Crashes with trucks and RVs are usually much more serious due to their sheer size and weight. Keep clear of their blind spots – when following, you should be able to see both mirrors of the RV or truck in front of you. If you’re behind a slow moving RV or truck climbing up a hill, leave extra space and be patient as they’re probably trying their best to keep up with the flow of traffic.

  • Most crashes with cyclists and pedestrians happen at intersections so always look for them – especially before turning. Make eye contact if you can, so they can anticipate your next move.

  • Check road conditions at drivebc.ca before you leave. Be realistic about travel times and accept delays that may arise. Don’t rush to make up time – slow down to reduce your risk of crashing and arrive at your destination safely. You also save fuel by driving at a safe and steady speed.

Statistics:

  • Over Labour Day weekend, on Vancouver Island, on average, 71 people are injured in 320 crashes every year.

  • Over Labour Day weekend, in the Southern Interior, on average, 77 people are injured in 330 crashes every year.

  • Over Labour Day weekend, in the North Central region, on average, 19 people are injured in 120 crashes every year.

  • Over Labour Day weekend, in the Lower Mainland, on average, 440 people are injured in 1,400 crashes every year.

*Based on five-year averages. Crash and injury data is based on ICBC data (2014 to 2018). Fatal data is based on police data (2013 to 2017). Labour Day long weekend is calculated from 18:00 hours the Friday prior to the holiday to midnight Monday.

VW recalls 117K cars in Canada to fix potential rollaway problem

DETROIT – Volkswagen is recalling about 117,000 cars in Canada and 679,000 vehicles in the U.S. to fix a problem that could let the cars roll away unexpectedly.

The recall covers certain 2011 through 2018 Jettas; 2015 through 2019 GTIs; 2015, 2016, 2018 and 2019 Golfs; 2012 through 2019 Beetles and Beetle Convertibles; and 2017 through 2019 Golf SportWagen’s. All have automatic transmissions, manual hand brakes and keyless entry.

VW says silicate can build up on a shift lever switch, allowing the key to be removed if the lever isn’t in park. That could let the cars roll off unexpectedly.

Dealers will add a switch and circuit board to fix the problem. The recall starts on Oct. 11.

A VW spokesman says he’s not aware of any crashes or injuries due to the problem.

To check for vehicle recalls, you can visit Transport Canada’s website.

Big, possibly expensive, changes to ICBC coming in September

The excerpted article was written by Rob Munro | info news.ca

You’re going to want to look closely at your auto insurance before Sept. 1 — changes at ICBC could mean much higher rates or possibly lower.

The provincial auto insurer is bringing in what it calls a ‘new culture’ of rates but if you have young drivers or people with a checkered driving history it might be worth cancelling your insurance and re-upping before Sept. 1.

One tipster to iNFOnews.ca said her family saved more than $800 insuring an underage driver with a clean driving record by avoiding a renewal due after the Sept. 1 changes. They cancelled their insurance and got a new agreement under the current scheme.

ICBC couldn’t explain that exact situation but said changes are coming. It all depends not only on your driving record but also on the records of all other regular drivers of your car – meaning they drive it 12 days a year or more.

“One of the big cultural changes here is that we’re asking customers to list drivers so that, on many policies, there will be many drivers,” Tyler McGilvery, Business Process Advisor for ICBC explained to iNFOnews.ca. “When you list additional drivers, 75 per cent of the premium calculation is going to be based on the driving record of the principal driver. Then, out of the drivers that are listed, the other driver that’s considered the highest risk would represent the other 25 per cent of that calculation.”

If you have a new driver, someone who has caused accidents or received tickets who will regularly drive your car, you will likely pay significantly more for insurance this year.

One way to avoid that hit would be to renew your insurance before Sept. 1 under the current system.

If your policy expires after Sept. 1, you could cancel it and renew under the old system, but you would be gambling that the fees charged for doing that – including having to buy a new licence plate – would be more than eating the higher premium.

And there is no way to calculate what the saving will be if your insurance doesn’t expire until mid-October.

ICBC sends out renewal notices 44 days before a policy expires. Until that happens, the new rates are not accessible by insurance agents so you can’t compare rates in advance. Your only option would be to cancel and renew your existig policy and hope it will save you money over the new rates.

There are a number of changes in the “culture” of how rates are calculated.

Not only will all regular drivers have to be listed, but there is no easy way to calculate how much a new driver will cost you each year.

Currently, vehicle insurance goes down five per cent for each year of driving to a maximum of 43 per cent.

Now, McGilvery said, the rates will take 40 years to go down that low but there is no set scale so no easy way to determine how much less a young driver will cost each year.

While the focus will be on insuring the driver, not the vehicle, there are also discounts for vehicles that are driven less than 5,000 km per year and/or have special braking systems.

Also new for this year is the fact that the premium is not going to be listed on the renewal form that’s mailed out. That can’t be calculated until the list of drivers is submitted. In future years, the premium will be included on the renewal form based on the previous year’s list.

People can be added or subtracted from that list at any time and at no cost.

So far, 55 per cent of those renewing early and paying the new rates have saved an average of $200 over last year’s rates, despite a 6.3 per cent increase going into effect in April, McGilvery said.

Another 15 per cent have increases of less than 6.3 per cent while the rest (30 per cent) have seen increases averaging $200 per year.

The idea is for bad drivers to pay more for the crashes they cause, McGilvery said.

Source: info news.ca

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