CAR RENTAL

Renting a car abroad as a Canadian

Licence rules, insurance and road tips for the places Canadians drive most, checked against official sources.

Renting a car abroad is mostly about three things: whether your Canadian licence is enough, what insurance you actually have, and the local rules of the road. Each guide below answers those for one destination, with the official sources linked.

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International Driving Permits, in short

  • An International Driving Permit (IDP) lets you drive for tourism in many foreign countries, but only when it is accompanied by your valid Canadian driver's licence.
  • CAA is the only organization authorized to issue IDPs in Canada. An IDP costs $32 including tax and is valid for one year from the date of issue.
  • To get an IDP from CAA you must be at least 18, have a Canadian home address and hold a valid provincial licence that is not a learner's, graduated, provisional or suspended licence.
  • You can apply for an IDP in person at a CAA store (same-day processing is possible), online in some regions, or by mail (about 5 business days plus shipping).
  • Countries that signed the 1949 Convention on Road Traffic, and some others, accept IDPs. Your IDP only lets you drive vehicles in the same class as your Canadian licence.
  • Canadians do not need an IDP to drive in the United States.
  • Canada, Japan, the United Kingdom, the United States and Portugal are parties to the 1949 Geneva Convention on Road Traffic. Indonesia and Mexico are not.

Does your credit card cover the rental?

  • Credit-card rental coverage is typically collision/loss damage coverage for the rental car itself. It is not third-party liability insurance.
  • On a typical premium Canadian card (example: TD Aeroplan Visa Infinite), you must charge the full rental to the card and decline the rental company's CDW/LDW, and coverage is limited to rentals of up to 48 consecutive days.
  • Card rental coverage often excludes certain vehicles, such as trucks, off-road vehicles, larger vans and some high-value cars, so check your own card's certificate before you decline the rental company's coverage.
  • Card coverage can be void from day one if your rental is longer than the card's maximum number of days, and driving off public roads can void a claim.
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