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? "

“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! “
Shannon Martin
Answered on May 14, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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