Should you pay for rental car insurance? It depends.

If you’re confused about whether or not to buy insurance when renting a car, you’re not alone. According to new research by the National Association of Insurance Commissioners (NAIC), 42% of survey respondents said they were either thoroughly confused or had only a rough idea about insurance coverage when renting a car.

“When renting a car,” says NAIC President Walter Bell, “many consumers purchase unnecessary insurance and end up wasting money. Meanwhile, other drivers inadvertently underinsure their rental car, placing themselves at risk.”

If you have insurance with Farm Bureau Mutual Insurance Company of Idaho, the following information may help you decide whether or not you need additional rental car insurance.

What the car rental companies offer:

Collision Damage Waiver (CDW) is also referred to as a Loss Damage Waiver (LDW).

You may not need this protection if:

If you have comprehensive and collision coverage (coverages S and T on a Farm Bureau Squire policy) on your own car, you likely will not need this additional protection. Comprehensive insurance covers vehicle damage cause by accidents such as fire, theft, hail, or vandalism. Collision insurance covers the cost of repairs or the actual cash value of a totaled vehicle if damaged in a crash or rollover. Farm Bureau Squire comprehensive and collision coverages apply to damage to a rental vehicle (passenger car, pickup, or passenger van) if driven and rented by an insured who has coverages S and T on at least one vehicle on their personal policy. These coverages do not apply to someone else who is driving the rental car. A deductible applies under comprehensive and collision accidents.

What the car rental companies offer:

Liability insurance covers medical expenses and damages to another person’s property as a result of a car accident caused by the insured’s negligence.

You may not need this protection if:

If you have adequate liability insurance (coverages N and O on a Farm Bureau Squire policy) on your own car, you may consider forgoing this additional liability protection. Coverages N and O apply to a rented vehicle driven by an insured if rented by the insured or if driven with the owner’s permission. An insured means you or the entity named in your policy declarations. If you are an individual, insured also means—if residents of your household— your spouse, your relatives, or minors in the care of you or your relatives. No deductible applies on this coverage.

What the car rental companies offer:

Personal Accident Insurance offers coverage to the renter and passengers for medical bills resulting from a car crash.

You may not need this protection if:

If you are covered by personal injury protection (coverage Q on a Farm Bureau Squire policy) and have adequate health insurance and disability income insurance, you may not need this additional insurance.

What the car rental companies offer:

Personal effects coverage provides for the theft of personal items inside the rental car.

You may not need this protection if:

If you have a homeowner’s or renter’s insurance policy with personal property coverage, (coverage C on a Farm Bureau Squire policy) it will generally cover this already. If you travel frequently with expensive jewelry or sports equipment, you may want to consider purchasing a floater (listing these items in Section IV, Inland Marine Insurance on a Farm Bureau Squire policy) under your home or renters insurance so these items are fully protected when you travel.

As with any insurance policy, the Farm Bureau Squire policy does contain exclusions to the above coverages. In particular, no coverage of the Squire policy applies if a car is rented for more than three weeks, or is rented outside of the United States, Canada, or a United States territory such as Puerto Rico.

Before reaching the rental car counter, we recommend  that you carefully review your Farm Bureau Squire policy and ask your Farm Bureau Insurance agent if there are any situations in which your policy would not cover a rental car. You can protect yourself and save money by taking a few minutes to understand what your Squire policy will cover.