Renting a vehicle? Here’s why it’s more important than ever to read the fine print

If you're looking to rent a car over the holidays, it's important to know the insurance you get could be limited if the car is expensive. Pat Foran reports.

If you rent a car over the holidays, you’ll need insurance and you may have to go through your own auto insurance policy, a credit card or purchase it from the car rental agency.

No matter what kind of coverage you have, you should know that there could be limitations if you rent an expensive vehicle.

Ellen Economopoulos, of Toronto, took a road trip to Alberta with her children last summer in a rented vehicle. Unfortunately, the vehicle’s windshield cracked after being hit by a piece of gravel.

“On the way back to Calgary, I noticed there was a big, loud sound,” Economopoulos said. “My windshield had been hit with a piece of gravel from a truck.”

Economopoulos had car rental coverage through her credit card, but when she submitted a claim, it was denied, and she was told the vehicle she rented was too expensive.

“I didn’t know about that, and I was a little bit shocked,” she said. “At least I was lucky it was only a windshield. I thought it would have been a lot worse if I had damaged the car.”

CTV News reached out to the insurance company, Global Excel Management Inc., but did not get a response in time for publication.

“Based on the information available to us at this time, we have determined that your claim is not covered under the terms of this insurance. Specifically, Section 5 - Limitations and exclusions, which stipulates that: Vehicles that are not covered are: any vehicle with a Manufacturer’s Suggested Retail Price (MSRP), excluding all taxes, over sixty-five thousand dollars ($65,000) Canadian, at the time and place of loss,” the company said in documents provided to Economopoulos.

“Our review of your claim has determined that the vehicle rented was a Dodge Durango RT 2025. The MSRP of the vehicle rented is $73,695 CAD. The vehicle is over the maximum MSRP for rental vehicles within the policy. As such, we are unable to cover any expenses in relation to your claim. Please be advised that the rental agency will bill you directly.”

“Are we supposed to ask how much the car is worth? I don’t know whose job it is to tell us that,” Economopoulos said.

Whether it’s a credit card or your own auto insurance policy, there may be limits on the type and value of vehicles you’re allowed to rent, Anne Marie Thomas with the Insurance Bureau of Canada said.

“My advice to anyone would be to read those provisions carefully. There may be limitations of $50,000 or $60,000,” Thomas said. “Each insurance company may have a different limit.”

You can contact your insurance company for information about purchasing additional coverage that will cover more expensive rental vehicles.

“If you drive a Honda Civic and pay premiums for a Honda Civic, it makes no sense to rent a Lamborghini with Honda Civic insurance,” Thomas added.

Economopoulos ended up having to pay $600 to repair the windshield. But she was relieved that was the only damage done.

“I’ve rented so many cars, and I didn’t know this. That’s actually kind of dangerous because I could have been liable for so much more,” she added.

These policies may need an updated, since the average price of a new car in Canada is now $67,000 and several rentals could fall under that price range.

If you’re renting a vehicle in the future, it’s something you may want to check so you don’t get an unwelcome surprise in the event of a collision.