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If rental cars already come with state-minimum liability insurance, why should I buy additional coverage?
"I am going to rent a car this weekend for a trip. I do not have insurance right now, but my credit card will provide $75,000 worth of coverage for damage to the rental car.
The rental contract stated that the state minimum for liability coverage is already included. If so, why are they trying to get me to buy more coverage? "
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“This is a great question! Many rental car companies do automatically include state-minimum insurance as part of the
rental car insurance
contract. However, state-minimum limits do not provide much protection and it is better to be adequately covered. The average cost of a hospital stay after a car accident is around $57,000. The average cost of a new car on the road today is about $40,500. If you have state-minimum bodily injury and property damage liability coverage, you will have to pay out of pocket for the difference once your limits are exhausted.
The recommended limits for
liability coverage
are 100/300/50; this applies for both a rental car and for your personal auto policy. It is always better to have more coverage if you can afford it! “View full answer
- Gregory R.
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