Things You Need to Know About Rental Truck Insurance

The last thing you want on a moving day is a surprise bill for damages you weren't expecting.

If you're planning to rent a truck, whether for a move, a DIY project, or business purposes, rental truck insurance is something you absolutely need to consider.

According to a report, the truck rental industry in the U.S. generated approximately $16.7 billion in revenue in the previous year. Millions of people are renting trucks annually for all sorts of reasons.

However, despite its popularity, many people overlook the importance of insurance when renting a truck. 

Did you know that 1 in 10 rental truck customers experience some form of damage during their rental period?

Whether it’s a small fender-bender or a more serious accident, the costs of repairing or replacing a rental vehicle can easily exceed thousands of dollars. 

In today’s world, rental companies offer several types of rental truck insurance coverage, but many renters are still unsure of whether they really need it.

What happens if something goes wrong and your personal insurance doesn't cover a rental truck?

What if you're moving valuable items and something gets damaged?

These are important questions, and answering them thoroughly will guide you toward making the best decision for you. 

In this blog, we will discuss rental truck insurance and how to choose the right one for your situation. 

Do I Need Rental Truck Insurance?

When renting a truck, the first question that likely comes to mind is, “Do I really need rental truck insurance?”

The short answer: “It depends”.

Here’s why:

Your personal auto insurance policy may cover your rental truck, but there are caveats.

Most standard auto policies cover rentals, but not all policies extend to moving truck insurance or vehicles above a certain weight or size.

If your current insurance doesn't cover these larger vehicles, you could be left vulnerable in case of an accident or damage. 

Many rental companies offer additional truck rental insurance, which is worth considering if you want to have peace of mind while driving an unfamiliar vehicle.

Let’s say you’re renting a truck for a long-distance move or transporting fragile items. Without proper coverage, the financial consequences of a mishap could be steep. 

So, the Bottom Line is:

Check with your insurance provider to confirm whether they cover rental truck insurance.

If not, purchasing additional coverage from the rental company might be a good idea, especially if you're traveling a long distance. 

Basics of Truck Rental Insurance Coverage

Once you’ve decided that you need rental truck insurance, it's important to understand the coverage options available to you.

Most rental companies offer various plans that include basic to comprehensive protection.

Here are some main types of coverage you might come across: 

Damage Waiver

A damage waiver is offered as part of rental truck insurance coverage.

This coverage protects you against truck damage, excluding incidents like overhead collisions or damage caused by negligence (e.g., leaving the keys in the truck). 

Supplemental Liability Insurance (SLI)

This provides coverage in case you're at fault for an accident that injures someone else or damages another vehicle or property.

Depending on the provider, the coverage can be as high as $1 million.

It’s important to note that many personal auto insurance policies don’t cover liability for rental vehicles, so having this additional protection is a wise choice. 

Personal Accident and Cargo Protection

Personal Accident Insurance (PAI) covers medical expenses for you and your passengers if you're injured in an accident.

Cargo Protection checks that the goods you're transporting are protected in case of damage or theft. 

Auto Tow Protection

If you're towing a vehicle, auto tow protection is compulsory.

This coverage protects against damage to the towed vehicle and includes roadside assistance if the truck or the towed vehicle breaks down. 

Best Truck Rental Insurance Options

Now that you understand the different types of coverage available, it's time to explore some of the best truck rental insurance options on the market. 

U-Haul

U-Haul offers two main types of protection: Safemove and Safemove Plus.

Safemove covers damage to the truck and liability protection, while Safemove Plus adds medical coverage for you and your passengers.

U-Haul also offers additional coverage for personal belongings, roadside assistance, and rental truck insurance for businesses. 

Enterprise Truck Rental

Enterprise provides personal accident insurance (PAI) and supplemental liability protection (SLP).

These options offer solid protection, but their prices can be high.

They also offer a variety of protection options for businesses renting trucks for deliveries, construction, or other operations. 

Budget Truck Rental

Budget’s coverage options are flexible and can be customized to your needs.

They offer basic coverage and optional add-ons, including damage waivers and liability protection.

Budget’s rental truck insurance near me feature allows you to find local locations offering protection plans, so you won't have to search too far. 

Rental Truck Insurance Requirements

Before you rent a truck, you must familiarize yourself with your area rental truck insurance requirements.

Insurance requirements vary by state, and some rental companies may have specific policies or limitations depending on where you're renting.

For example, in some states, you may not need to buy extra insurance if your personal policy extends to rental trucks.

However, in other states, rental truck insurance is mandatory, and you must purchase it at the time of rental. 

Things to Check:

State-specific regulations: Check your coverage meets the legal requirements for the state you’ll be driving in.

Company policies: Some companies require you to carry additional coverage, especially if you're renting a larger truck. 

Rental Truck Insurance for Moving

When you rent a truck for moving purposes, your needs may differ from those renting a truck for business use or a quick haul.

Rental truck insurance for moving is crucial to protect your belongings and ensure that you’re covered during transit. 

Coverage to Consider for Moving: 

Cargo protection: It is essential if you're transporting fragile or valuable items.

Accident protection: It makes sure that you’re covered if anything goes wrong on the road.

Roadside assistance: It offers peace of mind in case of mechanical failure or emergencies during your move. 

Rental Truck Insurance for Business

If you’re renting trucks for business purposes truck insurance for business is something you need to take seriously.

Business rentals come with additional risks, and protecting your vehicles, drivers, and cargo is critical. 

Coverage Options for Businesses: 

Liability insurance: It covers third-party damages or injuries.

Cargo insurance: It protects your goods during transportation.

Fleet coverage: If you're renting multiple trucks, you may be able to get a fleet insurance plan, which can be more economical. 

Rental Truck Insurance Online

Many rental companies now allow you to buy rental truck insurance online at the time of booking.

While this is convenient, it’s essential to review the terms carefully.

Sometimes, the coverage options provided online are not as comprehensive as those offered in person at the rental office.

Rental Truck Insurance Near Me

Finally, when searching for rental truck insurance near me, compare local rental companies, independent insurance brokers, and online platforms to find the best deal.

Reading reviews and checking the reputation of the rental company can also help you avoid any unpleasant surprises. 

How Much Does Rental Truck Insurance Cost?

So, you must be wondering, “How much is Rental Truck Insurance going to cost me?”

This is one of the most common questions people have when they rent a vehicle.

The cost of rental truck insurance depends on several factors, such as the type of coverage you choose, the rental company, and the duration of the rental.

It's not as simple as just picking a flat fee – there are multiple layers to this cost.

Let’s break them down. 

Damage Waiver (DW) / Collision Damage Waiver (CDW)

First off, the damage waiver is the most commonly offered insurance type when you rent a truck. 

Cost: Typically ranges from $10 to $30 per day. The exact amount will depend on the size and type of the vehicle you're renting. 

What it covers: This waiver covers the cost of damage to the truck, excluding damage from overhead collisions or negligence (e.g., driving under low-clearance bridges). 

Supplemental Liability Insurance (SLI)

Supplemental Liability Insurance protects you if you cause an accident that injures someone else or damages another vehicle or property. 

Cost: Generally around $10 to $20 per day. 

What it covers: Covers third-party liability for bodily injury or property damage caused by the truck during your rental. 

Personal Accident Insurance (PAI)

If you’re driving a rental truck for a long period of time or over long distances, having personal accident insurance (PAI) is crucial. 

Cost: Typically about $5 to $15 per day. 

What it covers: Medical expenses for you and your passengers in case of an accident. This coverage may also include life insurance in some cases.

Cargo Protection / Cargo Insurance

When you’re renting a truck for a move or transporting goods, cargo protection is essential. 

Cost: Typically ranges from $10 to $20 per day, depending on the value and type of cargo. 

What it covers: It covers damages to the cargo you're transporting in case of an accident or theft.

 Roadside Assistance

While this isn't strictly insurance, many people choose to add roadside assistance when renting a truck. 

Cost: Usually between $5 and $15 per day. 

What it covers: This coverage includes flat tires, dead batteries, and lockouts. Some rental companies also include fuel delivery, towing, and other services under this coverage. 

Towing Coverage

If you plan on towing a vehicle behind your rental truck, you should add towing coverage to your insurance policy. 

Cost: Typically costs $10 to $15 per day. 

What it covers: It covers damage to the vehicle you're towing, as well as possible towing fees in case of a breakdown. 

Additional Drivers Coverage

If you plan on having more than one person driving the truck, you’ll likely need to purchase additional driver coverage.

This allows anyone listed as a driver to be covered under the rental’s insurance policy. 

Cost: Around $10 to $15 per additional driver per day. 

Insurance for Extended Rentals

If you're renting a larger truck, like a moving truck or one designed for business, you may face higher insurance costs.

Also, if you're renting for more than a week, the daily cost may decrease, but the total overall cost will be higher due to the extended period. 

Cost: Larger trucks can cost anywhere from $50 to $100 per day for insurance. 

Rental Truck Insurance Costs

How the Costs Change Based on Vehicle Size and Rental Duration

The cost of rental truck insurance can depend on a few key factors: 

Vehicle Size

Smaller trucks, such as a 10 ft. truck, are generally cheaper to insure than larger trucks, such as a 26 ft. truck.

This is because larger trucks have more value and risk associated with them, which raises the cost of coverage. 

Rental Period

The cost per day may decrease with longer rentals, but the overall cost increases with the longer duration of the rental.

For instance, a weekly rental may cost significantly more than a daily rental, especially for larger trucks. 

Optional Coverage

Adding extra protections like cargo protection, roadside assistance, or towing coverage will naturally add to the overall cost.