Q) I am planning on renting a car for March Break. Should I buy the collision damage waiver coverage (CDW) from the rental agency? Will my credit card or my car insurance policy cover any damage?

A) It is best to check your policy and speak with your insurance professional first to see if you have the coverage. Depending upon the province you reside in, look to see if you have either an OPCF 27 (Ontario) or an SEF 27 (outside Ontario), which covers damage to a non-owned automobile. This is an optional coverage and not all policies have it.

In addition, you may have coverage for damage to a rental car extended from your credit card. If you do have this coverage from your credit card company, you will likely have to use that credit card to pay for the rental in order for the coverage to apply. Before you make your decision, check your credit card agreement to see the size of the deductible. The OPCF/SEF 27 deductible is typically the same as the deductible on your policy.

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