What's included in a Rental Vehicle Policy | How to get a Rental Vehicle Policy | More about Third Party Liability coverage
In most of North America, including British Columbia, rental vehicles must have Third Party Liability coverage. When you rent a vehicle, that is the primary coverage, meaning it will be used first if there is a claim. If it does not provide enough coverage to pay for the claim, then the Third Party Liability coverage under your Rental Vehicle Policy may be used as excess, which means it will pay for additional amounts that you are liable for (up to your policy limit).
If you own and license a vehicle in British Columbia, your own Third Party Liability coverage can also be used as excess coverage on a rental vehicle.
Remember, though, that claims paid under a Rental Vehicle Policy won't affect your position on the Claim-Rated Scale, but claims paid from your own vehicle's coverage will. That will affect the premium you pay in future.
In some places, the rental company may ask you to sign an agreement accepting responsibility for providing your own Third Party Liability insurance. In this case, the Rental Vehicle Policy will provide you with primary coverage. If you don't buy a Rental Vehicle Policy, then the Third Party Liability coverage from your own vehicle will be your primary coverage.
There are some conditions that apply to your coverage, and you should discuss them with your Autoplan broker before you rent a vehicle.
Anyone with a valid B.C. driver's licence automatically has $200,000 worth of Third Party Liability coverage when driving any vehicle that is not owned by that person. For the coverage to be valid, your driver's licence must not have Driver Penalty Point Premiums or Multiple Crash Premiums owing against it.
For more on this, including conditions that apply, talk to your Autoplan broker or check out driver licensing.
