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Is Car Rental Insurance Worth It? And How To Get It As A Manitoba Resident

Woman getting into a rental car.
September 18, 2020
Updated: November 8, 2022


If your vacation plans include renting a car while you’re away, you’re probably contemplating whether car rental insurance is worth it.

We think car rental insurance is always worth the extra cost. Why? Because without the right car rental insurance, you could be on the hook for claims totalling $10 million or more, and we want to protect you from that. Plus, a vacation should be fun and relaxing, and the easiest way to ruin it is with an accident claim. Not only could this unexpected accident ruin your current vacation, but it could also impact your ability to take another one for quite some time (Goodbye fun in the sun, hello debt and regret!).

In this blog, we’ll break down car rental insurance so that you’ll know all the ins and outs– including how much you need and the best (and cheapest) way to purchase it.

If you’re on a tight timeline and want to skip the reading and speed right to getting a quote, we’re here! Plus, we can help answer any burning questions you may have.

Why You Should (Definitely) Get Rental Car Insurance

Driving an unfamiliar vehicle in a strange place makes a collision more likely. And, without the right insurance, you’re personally responsible for damage to the vehicle you rent– even if you’re not at fault!

Rental Car Insurance doesn’t just give you peace of mind, it can save you up to $10 million if a claim is filed against you.

Even a seemingly minor collision puts you at risk for having major claims filed against you from the rental company. Claims can also be filed against you for things like damage to others’ property, and damages for injuries. Most rental companies also charge “down-time” to compensate them for the time the vehicle is off the road being fixed or replaced. All of these costs add up fast!

How Much Coverage Do I Need?

When you start shopping for Rental Car Insurance, you’ll want to look for a policy that:

  • Covers rented or borrowed private passenger vehicles, light trucks, motorcycles
  • Extends to both Canada and the US
  • Includes both first- and third-party coverage
  • Offers $10 million of coverage in case others make claims against you
  • Includes $100,000 of coverage for damage to vehicles rented outside of Manitoba
  • Has daily allowances, payable to you, to rent a replacement vehicle
  • Covers “down-time” charges from the rental company

We recommend buying your car rental insurance through Manitoba Public Insurance (MPI). Their Rental Vehicle Insurance offers everything we’ve listed above, giving you more extensive coverage than the other options out there. And, it comes in at a substantially lower cost, saving you up to $25 a day!

If you’re ready to take the plunge and purchase car rental insurance for your upcoming trip, get a quote today!

Things To Consider When Purchasing Rental Car Insurance

  1. Drivers must be authorized. Rental Vehicle Insurance covers you (the policy holder) and any other driver IF the driver has your permission and is qualified/authorized by law to operate the vehicle. If they’re not a Manitoba resident, they must be qualified or authorized by law in their home jurisdiction. If they don’t have that authorization, coverage may not apply.
  2. You can extend your coverage later. If you end up needing Rental Vehicle Insurance for longer than expected, you can purchase a new Rental Vehicle Insurance policy for the extra days. Just know that a $15 policy fee applies to each policy you buy.
  3. You can cancel your policy later. If you don’t end up needing coverage for as long as you thought, or if your trip gets cancelled, you can cancel your policy. But, if you shorten or cancel after the policy has started, there could be fees.
  4. Some things won’t be covered. Your car rental insurance will not cover the following:
    • Tires
    • Vehicle contents 
    • Mechanical or other problems unrelated to an accident
    • Rented motorhomes, off-road vehicles and cargo vans, or trucks heavier than 4540 kg 
    • Your own vehicle or a vehicle owned by anyone else living in your household

Ways To Purchase Car Rental Insurance

1. Through the Rental Company

A lot of people decide at the last minute to add-on insurance through their rental company, without realizing that they’re paying a premium for the convenience! Rental company insurance usually costs a lot more than MPI’s insurance, and it’s rarely as comprehensive.


  • Convenience


  • Higher cost
    Lower coverage

2. Through Your Credit Card

Most credit cards automatically provide coverage, but it’s usually only first-party liability coverage. This makes it less comprehensive than the Rental Vehicle Insurance you can get through MPI.

If you choose to go with your credit card’s rental car insurance, you can expect:

  • A lower liability limit, which won’t give you adequate coverage
  • Restrictions and conditions to accessing your coverage
  • 30 days of coverage at most
  • No coverage for bigger vehicles and motorhomes 


  • Automatically Provided


  • Less comprehensive coverage
    Conditions and restrictions

3. Through Your Insurance Broker

Through your insurance broker, you have access to MPI’s Rental Vehicle Coverage, which is by far and away the best insurance option! It covers rented or borrowed private passenger vehicles, light trucks, motorcycles and mopeds, and it extends to both Canada and the United States.

When you buy MPI’s rental vehicle coverage through us, you get:

  • $10 Million of coverage for claims made against you (property damage or injury)
  • A low $100 deductible
  • Up to $100,000 for damage to vehicles rented outside of Manitoba
  • Coverage for up to 90 days
  • A replacement vehicle if you need one

And, you’ll pay a lot less than you would if you went through your rental vehicle company!


  • Most extensive coverage
    Best price


  • We can’t think of any! 

Purchase this option at any Winnipeg Insurance Brokers Ltd. branch.

Car Rental Insurance FAQs

You’ve got the questions, and we’ve got the answers!

It might! But if you do, odds are it’s not enough.


As a Manitoba Citizen, if you’re hurt in a collision while driving a rental vehicle, you’re covered under MPI’s Personal Injury Protection Plan. This coverage can help a lot with your healing and recovery if you’re hurt, but it won’t help with third-party liability and claims from the rental company.

You can, but It’s not built-in coverage. So, if you wanted to get coverage through your current policy, you would have to purchase separately. The good news is that It is very affordable! The maximum premium is $7/day (plus a $15 policy fee).

Your car rental company might give you the option to add-on insurance, but it's often sub-par and more expensive.


Often the rental car coverage you purchase through your insurance broker will be more affordable than what you'll find with a rental car agency. Plus, you're supporting a local business by purchasing it through an insurance brokerage. Make sure to be aware of any exclusions or maximums on your policy, so you know what is and isn't not protected or covered.

Your standard credit card coverage only covers first-party liability unless you’ve specifically chosen a higher coverage option (think: $1, $2, $5, $7 or $10 million). It doesn’t protect you against claims from the rental company, and it won’t protect you fully from claims from other drivers if you travel in the United States.

Manitoba Public Insurance (MPI) offers car rental insurance for a more affordable rate than going through a rental insurance company! When you work with an insurance brokerage (like us!), we work with you to help you secure your MPI car rental insurance so that you can soar into your vacation with ease.

So, Is Car Rental Insurance Really Worth It?

Getting car rental insurance is 100% necessary and 200% worth it! Not only could it end up saving you millions, but it also gives you peace of mind knowing that if anything were to happen to your rental vehicle, you’d be covered.
So what are you waiting for?! Add, get car insurance to your pre-departure checklist and travel knowing that it has got your back.

When you’re ready to get covered– make us your first stop! We’ll help you secure your MPI car rental insurance so you can adventure with confidence.