Spring 2006
NEWSLETTER to clients of Knox Insurance Brokers Ltd.
From Randy Bushey, A.I.I.C.,
General Manager
Spring 2006 |
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TOPIC: RENTING OR LEASING A VEHICLE
Effective March 1st, 2006, significant changes have been made in Ontario to the Insurance Act and the Highway Traffic Act relating to responsibility for insuring rented and leased vehicles. These amendments have created considerable confusion within the rental vehicle business, and may result in further legislative change. As the law currently stands, without proper protection, individuals renting a vehicle may unknowingly incur significant financial risk.
Prior to March 1st, 2006, when renting a vehicle in Ontario for under 30 days, the liability coverage was carried by the vehicle owner (the vehicle rental company). However as of March 1st, the vehicle operator is required to provide insurance coverage for liability on the vehicle, even if only rented for one day.
This means when you rent a vehicle, your Ontario Automobile policy covering your own vehicle(s) will provide liability coverage for the vehicle you rent. This is for "other automobiles" under 4500 kg. (and subject to other conditions). Coverage extends only if driven by the named insured or spouse (or same-sex partner as defined by the policy). Coverage will not extend to other drivers even if they have your permission to operate the rented vehicle, or even if they are already listed drivers on your policy.
Accident Benefits coverage for injury to you would also be provided by your own automobile policy. Your contractual liability for physical damage to that vehicle while in your possession would be covered only if you purchase an OPCF #27 (Legal Liability for Damage to Non-Owned Autos) which we recommend for this purpose.
All vehicle rentals or leases of 30 days or more in duration are to be specifically listed on an automobile policy.
Please call us to review your coverage, prior to renting any automobile. We want to protect your exposure to risk!
This document is intended for simple explanatory purposes only. Actual coverage is determined by applicable law and by the policy wording (OAP1 owners form).