Only half of Canadian auto insurance policyholders carry rental reimbursement coverage, even as claim-related repair times stretch beyond two weeks, according to a study by Enterprise Mobility.
The 2024 Canadian insurance penetration study found that just 53% of customers with comprehensive auto insurance policies have rental-reimbursement coverage, also known as loss-of-use coverage. Yet 44% of those without it still chose to rent a vehicle during a recent claim.
Enterprise’s Length of Rental data shows Canadian drivers wait an average of 15 days for collision-related repairs.
The study also found that 21% of customers without rental reimbursement coverage said they had never heard of it, or that their provider does not offer it.
The findings arrive as the Canadian auto insurance industry – valued at an estimated $25 billion – faces mounting cost pressures. Claims costs have risen due to inflation, higher repair charges, and an ongoing auto-theft epidemic, contributing to an average consumer rate increase of over 12% from Q3 2023 to Q3 2024, according to Canadian Underwriter. A Data Insights Market report projects the industry will sustain a compound annual growth rate of 4.4% through 2033.
Customer satisfaction varied sharply depending on coverage. Among respondents whose rentals were fully covered, 64% reported being very satisfied with their provider, compared to just 33% of those whose policies covered only part of the cost.
“The more out-of-pocket expenses a customer pays, and the more friction they encounter in carrying on with their day-to-day activities, the less satisfied they are with their insurance provider during a claim,” said a spokesperson identified in the report as Mahoney.
Policyholders who used rental benefits during a claim were more satisfied with their overall experience, with 93% saying they were likely to rent again for a future claim. Those with rental reimbursement also tended to stay with their provider longer and shopped for new insurers less frequently.
Among respondents without rental reimbursement coverage, half said they considered it an important factor when evaluating a new provider.
Jennifer Everett, vice-president at Enterprise Mobility, said the coverage should be treated as more than an optional add-on.
“Rental reimbursement should no longer be considered merely supplementary. With the potential to positively impact customer satisfaction and retention, these policies can represent a strategic advantage for insurers willing to prioritise them in initial policy discussions and throughout the client relationship,” Everett said.
Brokers appear to play a key role in awareness. Among policyholders who carry rental reimbursement coverage, 60% said they learned about the benefits through their broker.
Among those without coverage, about half said they were open to it – a figure that rose to 67% among drivers with a recent claim, and 78% among those who opted to rent a vehicle on their own during a claim.
The study also found that 37% of respondents who had coverage but did not use it during their most recent claim said they would make a different choice if given another chance.
“This data is critical for insurance professionals focused on customer retention and growth,” Mahoney said. “In a market where consumers have more choices than ever, positive claims experiences and value perception are crucial differentiators.”
The Enterprise Mobility study was conducted in 2024 and examined rental reimbursement penetration and customer satisfaction across the Canadian auto insurance market.
The Enterprise findings arrive amid mounting pressure on Canadian policyholders. Auto insurance premiums rose 7.3% on average in October 2025 compared with a year earlier, more than three times the national average for all goods and services.
Experts expect prices to remain elevated in 2026, according to Global News. Trade tariffs, supply chain disruptions, and labour shortages have added further strain to the market.
Meanwhile, Ontario is preparing for a significant policy overhaul. Starting July 1, 2026, the province will shift from a mostly standard benefits package to individual add-ons, with only medical, rehabilitation, and attendant care benefits remaining mandatory, according to ThinkInsure.
Brokers will play a key role in helping consumers navigate the added complexities, including clearly explaining what is and is not included in a standard policy.
