For many travelers, a moment of dread strikes when they reach the rental car counter. As you’re handed the keys, the big question looms: How much insurance should you really buy? If you have State Farm car insurance for your personal vehicle, the good news is that you’re likely covered for your rental car—though there are a few things to keep in mind. Your coverage is tied to the terms of your existing auto policy, and understanding the limits of that coverage can save you both time and money.

State Farm’s website assures that, for most people renting a car for personal use, buying extra insurance from the rental company is probably unnecessary. After all, you’re covered for rentals up to the limits of your own policy. If you drive a newer, full-size vehicle and rent a compact car, you’re all set. However, if you drive an older, smaller vehicle and rent a shiny new model with all the latest features, things could get complicated.

Rental agencies often offer a Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) for $20 or more per day. These waivers typically cover costs like repairs, towing, and replacement if the car is damaged or stolen. If you’re unsure about the specifics of your State Farm coverage, it’s always worth double-checking before you sign any paperwork at the counter.

When You Might Want to Buy Extra Coverage

If an accident occurs while driving a rental car, your State Farm insurance will likely cover the deductible, and then the rest of the repair costs will be covered up to the limit of your policy. But if your deductible is on the higher side, it might be worth paying for extra coverage directly from the rental company. That way, you won’t be responsible for paying more than your deductible, should something happen.

In some cases, purchasing additional coverage can be a smart move. For example, if your State Farm policy has a high deductible, you might find peace of mind in knowing that your rental car is fully protected, even if the worst happens.

Another reason to consider extra coverage is if you’ve recently filed a claim. More than one claim in a short time span could hike up your premiums. To avoid a premium increase, it might be worth splurging on extra coverage at the rental counter, saving you from a bigger financial headache down the road.

If your State Farm policy doesn’t include comprehensive coverage, the CDW offered by the rental company could be your best option. Also, if your health insurance doesn’t cover car accidents or your policy lacks liability protection, it could make sense to opt for personal accident insurance or additional liability coverage at the counter.

When Should You Definitely Consider Extra Insurance?

Even if your State Farm coverage extends to rental cars, there are moments when it’s wise to purchase additional insurance, including:

• High Deductibles: If your policy has a large deductible, it will apply to the rental vehicle as well. In this case, paying for rental car insurance might be a small price to pay for extra security.
• Recent Claims: If you’ve filed a recent claim, purchasing rental insurance can help prevent another claim from driving up your premiums.
• No Comprehensive Coverage: If your personal vehicle insurance doesn’t offer comprehensive coverage, consider getting the Collision Damage Waiver (CDW) from the rental company for added protection.
• Unfamiliar or Risky Driving Conditions: If you’re heading into unfamiliar territory or challenging weather, it might make sense to get extra coverage, just in case.

Remember, your State Farm policy covers you for rental cars, but only to the extent of your personal vehicle’s insurance limits. If you’re planning a fun weekend road trip in a high-end car or a vacation with a rental vehicle that’s not your usual style, it might be a good idea to beef up your coverage. Always check your policy’s limits and weigh your options before you hit the road.