Gaps in your insurance coverage can cost you thousands of dollars

If you’re planning to travel abroad in the coming months, having adequate insurance coverage is essential. You can save yourself thousands of dollars in unexpected charges by reviewing your insurance coverage and its limitations before your travel.

Valuables

Your personal or homeowner’s coverage may have coverage limits on valuables such as jewelry, electronics, handbags, and other high-end items. Review your insurance policy to make sure your valuables are adequately covered in case of theft.  For more tips to protect your belongings while traveling see the attached link.https://www.internationalinsurance.com/news/protect-property-while-traveling/ 

Car rentals

Very often your personal automobile policy or credit card issuer will cover damage to a rental car. Review your auto policy closely for specific coverage limits and restrictions. Credit card companies typically offer rental car coverage as part of their “perks,” so review their policy as well in particular look at the limits of insurance offered. You may or may not need to purchase additional coverage. 

Note: This information is for general knowledge only; you must verify your coverages with your Broker based on your own active automobile policy.

If you are the policyholder, a rental car must be in your name for insurance coverage to apply.  If the policy is in the business name, the rental agreement must be in that name.

Covered territory in Canada and the US. 

Your automotive policy must have the SEF 27 endorsement, which covers rental car damage. 

This endorsement comes with a limit of insurance on the value of the vehicle that you rent.  For example, if the coverage limit is $40,000, avoid renting a high-end car. You could otherwise be liable for the difference between the coverage limit and the cost of repairing the damage to the rental car. 

If you are renting a vehicle under your commercial policy, the vehicle must be used for business use only.  Renting a vehicle under a company name for personal travel may result in denial of coverage, depending on your insurer’s limitations. 

 Rental agency coverage

In some cases, you may opt for the insurance coverage provided by the rental agency for peace of mind if you didn’t review your personal policy(ies) before you left home. Be sure to review the fine print on rental agency contracts; in some cases, coverage purchased through the car rental agency may carry more restrictions and lower coverage amounts for the type of vehicle you rented. 

When in doubt, check with your insurance broker before traveling to ensure you’re adequately covered at home and abroad.  We are you one-stop shop for Personal, Commercial and Marine Insurance