The year 2016 has thus far proven to be very active for the car rental market in Canada. From misconceptions about insurance requirements to self-driving cars and from ride sharing systems to using credit rewards, here are some of the latest developments from the rent-a-car world:
Credit Card Auto Insurance Myths
According to a prestigious law firm in Toronto, Canadians who decline insurance at the car rental counter often do so because they think that their credit card has them covered. This is not always the case; drivers would be surprised to learn about the numerous limitations of the insurance coverage provided by their credit card issuers. A driver who rents a Mercedes Benz sedan and ends up in accident could be unpleasantly surprised to learn that luxury vehicles are not covered.
Ride Sharing Gets a Car Rental Twist
Drivers in Calgary are testing a new and interesting ride sharing service that essentially eliminates the driver. Using a peer-to-peer business model, this new service asks vehicle owners to allow drivers to get behind the wheel for a fee. In other words, the car is rented for at least one day; the owner gets 75 percent of the rental fee and the agency retains a 25 percent commission. Low rental costs, a diversity of cars and the local factor are the major advantages of this new service, which hopes to extend to other Canadian cities next year.
Trading Air Miles for Road Miles
During the Great Recession years in the United States, the Canadian dollar gained strength over the greenback, thereby encouraging banks to issue credit cards and offer perks such as Air Miles. Now that the loonie has lost ground against the U.S. dollar, Canadians looking to cash in their Air Miles are finding them useful to rent cool cars for the weekend. In some cases, credit card holders are taking their cars to the shop for extended maintenance and driving rental vehicles for a few days.
Self-Driving Cars Could Soon be Rented in Canada
As autonomous vehicles technology moves from the research phase into the Canadian roads and highways, the insurance and rent-a-car industries are paying close attention. Automotive industry analysts believe that self-driving cars could be the most influential transportation trend of the 21st century, and rental agencies may be the first to acquire fleets of robotic cars. Self-driving vehicles could reduce insurance premiums and could also revolutionize the rent-a-car model at international airports in Canada. In the near future, rental vehicles could drive themselves to passengers arriving at Toronto Pearson International Airport. The Discount Car & Truck Rentals website is a useful resource if you would like more information.