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Worried That Insurance Is Too Expensive? Think Again.

By Seth Hird | Posted on May 17, 2022

Equipment Industry| Rental Shield™


Are you worried that your equipment insurance is too expensive? Well, you’re not alone. In our society, insurance is a necessary evil. However, there are some insurance expenses that we are willing to accept because the law requires that we have the right policy in place. Therefore, we are all forced to balance requirements and validity with cost – sometimes high costs.

In light of that, we will dive into the equipment insurance world and see what we can learn.

Equipment Insurance vs. Phone Insurance

Are you the person that pays a monthly insurance fee to protect your phone? I am not. I buy a glass screen protector, a durable case, and roll the metaphorical dice of iPhone fortune. However, let’s say that you pay the $10-$15 a month insurance fee because you see the value in being protected. Let’s compare and contrast some complex numbers to understand equipment insurance better.

ProductValue Monthly Insurance CostDifferenceDeductibleDifference
2016 Bobcat E26$30,500$157.086.0%$2,5008.0%
iPhone 11 128GB$549$17.003.0%$22941.0%
Numbers are taken from Fleet Up and a large US-based cellular company.


Coverage Difference:

Bobcat – Rental Shield will cover against collisions, falling objects, fire, flood, overturns, theft, and vandalism. VS. iPhone Coverage – Insurance on an iPhone only protects you against a lost or stolen phone.


It’s estimated that 50 million iPhone screens get cracked per year, but the standard insurance won’t cover that. Every other cause of damage to a phone (scrapes/speaker failure/charging port malfunction/etc.) typically won’t be covered under the standard policy.

Rental Shield coverage is different than other policies in that it covers seven of the most common causes of damage, not just the rare causes of loss. This means that it’s more valuable and useful than something like standard phone insurance.

Cost Difference

Bobcat – 6.0% VS. iPhone – 3.0%


The base insurance cost is probably the most subjective portion of this breakdown. One could argue that the dangerous nature of construction/heavy equipment is more dangerous, but that might not exactly be the case. According to, 70 million iPhones get lost or stolen each year. So, one could say that the chances of being involved in an equipment accident versus losing your phone are far lower.

However, considering the increased coverage you get with Rental Shield versus a typical phone insurance plan, that could justify the price. Again, this portion is more subjective, and as such, it will require each person to make a determination based on their situation.

Deductible Difference

Bobcat – 8.0% VS. Phone – 41.0%


Let’s, for a moment, overlook the glaringly obvious discrepancy in the deductible rate versus the equipment value. Instead let’s talk about the elephant in the room, a $2,500 deductible.

For most Americans, their car is the most valuable asset (not including real estate). Considering that the average used car sells for just north of $22,000, per Statista. Thus, that $2,500 deductible is a significant number (11% of their second most valuable asset).

However, 8.0% is incredibly meager than 41.0% for a new phone. So while equipment insurance may seem expensive at first glance, is it really?

Conclusion: Is Equipment Insurance Too Expensive?

We do our very best to make sure that Rental Shield is affordable to our customers. However, this industry and the equipment used within the industry are expensive, thus the insurance is not cheap.

While this article aims to compare insurance programs objectively, we realize the possibility that our position is biased. Therefore, we suggest that you do your research and find the solution that best suits your situation. Regardless of our stance, you have the ultimate decision.


If you have any questions about Rental Shield or equipment coverage in general, we would love to answer your questions. Also, whether you’re looking to rent the machine yourself or looking for options to protect your rental business/fleet, we have resources for you below!

Rental Shield – Email: | Phone: 1 (512) 714-9592 (option 2)

Protect Your Rental Fleet – Email: | Phone: 1 (512) 714-9592 (option 3)

Advising Question – Email: | Phone: 1 (512) 714-9592 (option 5)


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