LAST UPDATED: May 16, 2024

There are many reasons why snowbirds rent cars - both during snowbird season and at other times of the year – with the most common reasons being: 

• Renting a Car in Your Snowbird Destination for Yourself: A growing number of snowbirds who winter in the continental U.S. are choosing to rent a vehicle in their destination rather than drive or have their vehicle shipped back and forth from Canada. This option is particularly popular among snowbirds who are only away for 1 -2 months.
  
  And of course, snowbirds who winter in destinations outside the continental U.S. and want to have a vehicle at their disposal have no choice but to rent a car.
• Renting a Car in Your Snowbird Destination for Visiting Family: Snowbirds will often rent a car in their winter destination when the kids and grandchildren come to visit and an extra vehicle is needed.
• Renting a Car for Your Non-Snowbird Travel: Many snowbirds travel or take vacations at other times of the year and require a car rental during their travels.
• Renting a Car at Home: Sometimes you may just need an extra vehicle while you’re at home in Canada for a variety of reasons.

As anyone who has ever rented a vehicle before knows, the process of renting a car can be full of potential pitfalls, including big differences in rental rates depending on where you book, confusing terms and conditions and uncertainty around insurance coverage. And for snowbirds who often rent cars for longer periods of time, there are even more things to look out for.

To make sense of it all, we’ve created the following guide with our top tips for snowbirds to help save money and avoid issues when renting a car.

Shop around

Just like airfare and other travel related products and services, renting a car is not as affordable as it was before the pandemic as car rental rates have increased significantly over that period. However, rental rates can still vary greatly depending on where you book your car rental, so it pays to shop around and compare.

There are many channels through with you can rent a vehicle, including:

• Directly from car rental companies
• Online travel agencies
• Airline websites
• Tour companies and travel agents
• Organizations you are a member of, such as Snowbird Advisor and others

Channels that allow you to compare options from different car rental companies (commonly referred to as “aggregators”) are often your best choice, as they save you time and allow you to quickly and easily see pricing from multiple providers.

If you have the time, it is highly advisable to compare two or three different channels to find the best prices, but make sure you are comparing apples to apples. When comparing channels and pricing, here are a few things to look out for:

• Currency: Are the rates you are being quoted in Canadian dollars, U.S. dollars, Euros or some other currency? Different websites quote rental rates in different currencies and exchange rates can make a big difference in prices. If possible, try to book with a company that lets you book in Canadian dollars to avoid extra costs related to currency exchange.
• Additional Pickup/Dropoff Charges: Are there any additional fees when you pick up or drop off the vehicle? In many cases, you will be charged a fee if you drop off your vehicle at a different location than the one where you picked it up. This fee can vary depending on how far away the drop-off location is from the original pickup location.
• Cancellation/Change Policies: How far in advance of your pickup time are you able to cancel or change your reservation?
• Smaller Isn’t Always Cheaper: When it comes to vehicle size, surprisingly, the smallest vehicle is not necessarily the cheapest. If you are looking for the lowest cost, make sure you look at several categories to see which one is actually the cheapest for the dates you are looking for.

If you’re a Snowbird Advisor member, it’s worth noting that we recently partnered with Auto Europe to provide our members with competitive car rental rates. Members can compare rates from multiple car rental companies in over 180 countries – including Canada, the U.S. and Mexico - and book the best option to meet their needs. All rates are quoted in Canadian dollars and cancellations can be made up to 48 hours prior to pickup. You can learn more here.

Important details to look for when renting a car

There are many things to investigate before renting a vehicle, as well as when you pick up your vehicle:

• Second Driver: Is there a charge for a second driver? Some companies do not charge for a 2^nd driver if you are married, but many do, so be sure to ask about this. The fee can be quite substantial, particularly if it is a longer-term rental. Also ask if there is a limit to the 2^nd driver fee, such as a maximum of 14 days, no matter how long the rental term is. Of course, you can avoid all this by just deciding that only one person will drive.
• Age Limits: Many car rental companies will not rent to anyone under a certain age. This can vary but is usually either 21 or 25. Some car rental companies may also change higher rates for drivers who are over a certain age, or even have a maximum age to be eligible to rent a car.
• Unlimited Mileage: Most agreements now offer unlimited mileage, but this is not always the case so always ask if there is any limit on mileage, and if so, what is it.
• International Borders: Some car rental companies  have restrictions on crossing international borders, but these policies vary depending on the company and which borders you intend to cross. If you plan to cross international borders, find out ahead of time from your car rental company if they permit it.
• Required Documentation: You will be required to provide a valid driver’s license that does not expire during the time of your rental, as well as a valid credit card. You may also be asked for additional identification, such as your passport, if you are renting in a country outside Canada.
• Proof of insurance If you decline certain types of insurance coverage from the car rental company, you may be asked to show proof of your Canadian auto insurance or credit card coverage, so make sure you have it with you, including the name of your Canadian auto insurance provider.

Insuring your rental car

Insurance is often the most confusing and frustrating part of the car rental process.

When you pick up your rental car, the attendant will offer you multiple insurance coverage options for your vehicle, each of which come at a daily premium that can vary widely depending on location and car rental company.

The decision as to which insurance options to accept or decline must to be made on the spot – often with other renters in the line behind you growing impatient – which can create stress and pressure and lead to poor decisions. 

To avoid running into this problem, it is highly advisable to research both your personal auto insurance coverage and your credit card coverage (if your credit card includes insurance benefits) ahead of time to find out what is and is not covered with respect to rental cars.

This will help you make good decisions when choosing which coverage to purchase or decline from the car rental company, ultimately saving you money while also ensuring you have the coverage you need.

What types of rental car coverage options are available?

Car rental companies will generally offer you the following types of insurance coverage.

However, if you have an alternative coverage source in place for a specific type of insurance (i.e. a credit card or your personal auto insurance policy), you may be able to save money by declining insurance from the car rental company. But before you do, you’ll want to make sure you understand the terms, conditions and coverage limits for your alternative coverage source to ensure you are adequately protected:

1. Loss Damage Waiver (LDW) / Collision Damage Waiver (CDW): Covers you for theft and collision damage to the rental vehicle and is often referred to as “Collision and Comprehensive” coverage. It is highly advisable to have this type of coverage when renting a vehicle, whether it is through the car rental company or an alternative coverage source like a credit card or your personal auto insurance policy. In some cases, your rental car company may even require you to have LDW/CDW coverage elsewhere if you decline this coverage from them.
   
   Alternative Coverage Sources:
   
   - Credit Cards: Many credit cards offer some type of LDW/CDW coverage for car rentals, but the terms and coverage limits can vary greatly depending on the credit card. Make sure you are aware of your credit card terms and coverage limits before relying on them.
   
   -  Personal Auto Insurance Policy: Your Canadian auto insurance policy may include LDW/CDW coverage, but only if it includes an endorsement for non-owned automobiles, often referred to as “Endorsement 27”, so check your policy to see if you have this endorsement.
   
   This endorsement also includes some important limitations related to geography – it only covers driving in Canada and the United States – as well as who is covered, coverage limits and maximum coverage duration, so make sure you are aware of these.
   
   Finally, it’s important to be aware that if you make an LDW/CDW claim on your personal auto insurance policy, it will likely affect your future insurance premiums, whereas making an LDW/CDW claim on your credit card coverage or getting LDW/CDW coverage from the car rental company would not.
2. Personal Accident Insurance (PAI): Provides a lump sum benefit – which can vary - for accidental death or dismemberment to the driver and any passengers in the rental vehicle at the time of an accident. While not essential, it’s really a personal choice whether or not you want to obtain this type of coverage based on your comfort level.
   
   Alternative Coverage Sources:
   
   -  Credit Cards: Most credit cards do NOT include PAI coverage, but some might. Check with your card provider.
   
   -  Personal Auto Insurance Policy: If your personal auto insurance policy includes Endorsement 27 for non-owned automobiles, you may have some form of PAI coverage included when renting a vehicle. Check with your auto insurance provider for details.
3. Liability Insurance (LI): Covers you if you are at fault in a collision that causes injury or death to another person or damage to the property, such as a vehicle. Note that as in all insurance policies there will be limit to the amount of Liability Coverage. If you are driving in the U.S., many insurance professionals recommend having at least $2 million in LI coverage, which is higher than the minimum in Canada, as damages can be higher in the U.S. It is highly advisable to have this type of coverage when renting a vehicle, whether it is through the car rental company or your personal auto insurance policy. In some cases, your rental car company may even require you to have LI coverage elsewhere if you decline this coverage from them.
   
   Alternative Coverage Sources:
   
   -  Credit Cards: Credit cards do NOT include LI coverage.
   
   -  Personal Auto Insurance Policy: If your personal auto insurance policy includes Endorsement 27 for non-owned vehicles, you may have LI coverage included when renting a vehicle. Check with your auto insurance provider for details and coverage limits.
4. Personal Effects Coverage (PEC): Covers you for theft and damage to your personal belongings while they are in the rental vehicle. Not that there is always a limit on the amount you can claim under PEC coverage, and there is often a deductible. While not essential, it’s really a personal choice whether or not you want to obtain this type of coverage based on your comfort level.
   
   Alternative Coverage Sources:
   
   -  Credit Cards: Most credit cards do NOT include PEC coverage, but some might. Check with your card provider.
   
   -  Home/Renters Insurance Policy: Your Canadian home or renters insurance may include some form of PEC coverage for rental vehicle. Check with your provider for details.

Other Insurance Items to Look Out For

If you are planning to rely on coverage under your personal auto insurance policy or credit card, here are a few additional things to be aware of:

• Coverage Amount Limits: Check out the coverage limits and compare them with the limits offered by the car rental company.
• Coverage Duration Limits: If you are renting a vehicle for an extended period of time, be aware that your credit card and personal auto insurance policies will have limits on the number of days they will cover you for a rental vehicle. Make sure you are aware of these limits and plan accordingly. This may require returning your rental vehicle and getting a new vehicle under a new rental contract before your coverage expires, but check with your credit card insurer or personal auto insurance provider first to see if they even allow this.
• Geographic Coverage Limits: Some coverage may only be available in certain jurisdictions (i.e. Canada and the U.S.), so check to make sure your coverage is valid in the jurisdiction where you are renting a vehicle.
• Policy Rider for Personal Auto Insurance Policy Coverage: If you plan on relying on your personal auto insurance policy for coverage related to a rental vehicle, make sure your policy has the necessary rider that covers non-owned vehicles and is often referred to as “Endorsement 27”.
• Pay with the Credit Card You Are Relying on For Coverage: In order to rely on the rental car coverage benefits provided under a credit card, you must use that credit card to reserve and pay for your car rental.
• Credit Card Coverage Not Always Accepted: Some car rental companies may not accept credit card coverage.

The bottom line

Renting a vehicle can be a great solution for many snowbirds for a variety of reasons, but it’s important to understand all the ins and outs of doing so. 

Do your homework beforehand and make sure you have adequate car rental insurance coverage - it could save you a lot of money should you become involved in an accident.

Snowbird Advisor Members – Compare Car Rental Rates Here