Auto Insurance – No Rental Car Coverage – Save now but you will pay more later


A story from Pacific Crest Insurance. Simple, Safe, Save!   Auto Insurance – No Rental Car Coverage – Save money, but pay more later…  YIKES!!!


In Auto Insurance everyone wants to save money, but skipping on rental car coverage may not be the best idea. In the last 8 years it amazes me how often I come across customers who do not have this coverage, even though it is not very expensive. It is often one of those questions I ask “do you have Rental car coverage” and the customers just give me a blank stare or says “I am not sure”. So I am going to share a story of why it is important and the costs of not having this. You can save money now but may pay more later.

Recently I had a customer who did not have rental car coverage on her policy from a previous company, I wanted to share her experience with you. I originally spoke to this young lady about 1 year back, I had offered her a really good policy but she decided at the time is wasn’t in her budget.  Fast forward 10 months later…    I received a call one day from her, she was quite upset. It turns out, she took a policy out from another company who had just sold her on price. They had given her a high deductible, low limits and no rental car coverage.  She gave me the story and it was all to familiar, she called up, they didn’t ask her many questions, gave her the price and she signed up. Well 10 months later, she was in a car accident, luckily no one was hurt, but her car was not drive-able.  This is where the problems began she explained. She found out she had $1000 deductible, asked about getting a rental car and was told “Sorry, your out of luck, you don’t have that”.

This put her in a  bind, her being a single mother, she had to take her child to school everyday and also go to work. So she shopped around and got a rental car while her car was being fixed.  Being in California, it ended up costing her $980 for the whole month.  So based on the policy I had offered her, she was out $500 (vs $500 deductible I offered) and then $980 for the rental car.  It turns out the price on my policy for rental coverage was a whopping $32 per year..  vs the $1480 she was now out. And worse of all, the difference in payments between my policy and her policy was $10 a month, $120 for the year. Her policy has lower limits on coverage, no rental car, $1000 deductible vs $500.

After speaking to me that day, we signed her up for the policy that was originally offered her 10 months ago. She expressed her relief of knowing how well we explained all the coverages to her and that she felt safe now, especially after her last experience.

Regardless of who your insurance company, be aware of what coverages you have, it wont seem important until your the person in the accident.  Having a good agent that explains your coverages in detail and gives real world examples of how you can be effected helps. You think you may save money by not having rental car coverage, but if you have an accident it will cost you more if you don’t have this.

If you feel your agent or company did not explain all of your coverages well, feel free to call us her at Pacific Crest, we will always be happy to explain what you have, regardless you switch over or not because our job is to make insurance Safe, Simple and help you save. You can call us anytime at 951-370-2080 or fill out the contact sheet at this link Call Me Button and we will call you.


Remember, You may think you will save money on your auto insurance by not taking rental car coverage, but it may cost you more in the long run. Depending on where you live, getting a rental car can cost you anywhere from $800 to over $1000 for 30 days. Talk to your agent about your auto insurance coverages, if they do a good job, you will understand what coverages are important to you. In most cases, rental car coverage costs $30 to $50 per year.

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