After the Breach: Insurance, Rentals & Consumer Behavior Post-Hertz Incident

When news broke of the recent Hertz data breach, millions of customers were left wondering what it meant for their personal information, travel plans, and even their insurance policies. 

Data breaches aren’t just about stolen emails or leaked phone numbers anymore. When sensitive records like driver’s licenses, passports, or insurance details are exposed, the risks extend far beyond identity theft—they can change how consumers approach everyday services like renting a car.

Below, we’ll explore how the breach could reshape consumer behavior, what role insurance companies and rental agencies play, and what you can do to protect yourself moving forward.

Impact on Customer Trust and Rental Behavior

Trust is the foundation of the rental car industry. Customers hand over not just payment information, but also personal documents like driver’s licenses and insurance cards. After the Hertz breach, many customers may think twice before booking.

For some, that hesitation may mean comparing rental agencies more closely, opting for companies with stronger cybersecurity reputations, or even avoiding loyalty programs that store sensitive data.

In the short term, Hertz may face cancellations or defections to competitors. But long-term, this breach could cause all consumers to demand stricter data security from the entire rental industry.

Are Consumers More Wary of Third-Party Risks?

Hertz, like many major corporations, works with a web of third-party vendors for IT, insurance, and travel partnerships. Often, these third-party connections are where vulnerabilities arise.

Consumers are beginning to realize that even if they trust Hertz itself, they may not know who else has access to their information. In today’s digital climate, there’s a need for companies to vet their vendors carefully and for customers to be cautious about sharing data that could move beyond the rental counter.

Does Insurance Cost or Coverage Differ After a Breach?

One lingering question for many Hertz customers is whether insurance costs will increase because of the breach. Insurance companies sometimes adjust pricing based on risk profiles, but in this case, a breach doesn’t make drivers riskier behind the wheel. It just makes their personal data more vulnerable.

However, there are still implications. Customers who experience identity theft may face challenges with insurance fraud, such as false claims opened in their name. Some insurers may also offer identity theft protection riders, which could become more popular after the Hertz incident.

Additionally, businesses with fleets insured through Hertz partnerships could see changes in their coverage requirements.

So while the breach itself may not directly raise car insurance premiums, the ripple effects could still affect how policies are structured and sold.

Travel and Car Rental Comparison: Hertz Versus Competitors

Hertz isn’t the only rental company under scrutiny. Travelers are now asking whether competitors like Enterprise, Avis, and Budget are more secure. The reality is that the entire industry faces the same challenges: handling high volumes of sensitive customer data while relying on third-party vendors.

The key difference may be how each company responds:

• Transparency: Did they notify customers quickly?
• Security investments: Are they strengthening protections post-breach?
• Customer support: Do they provide credit monitoring or ID theft protection?

Consumers may shift their loyalty based not on who has been breached, but on who is best prepared to handle the fallout.

Insurance-Specific Vulnerabilities

The Hertz breach isn’t just about vacation rentals. Businesses that rely on Hertz for employee travel or company fleets may have had their workers’ compensation and liability insurance information exposed.

Why does this matter?

Fraudsters could use stolen records to file false workers’ comp claims, and corporate clients may face compliance headaches if employee data was leaked. Sensitive insurance details in the wrong hands could also be used to exploit coverage gaps.

This adds another layer of complexity for companies, many of whom will be reviewing their contracts with Hertz and demanding stronger cybersecurity assurances moving forward.

Protecting Personal Data During Future Rentals

The Hertz breach has many people asking: How can I protect myself when I rent a car in the future?

Here are some practical steps:

• Bring your own insurance card rather than letting the rental company store it long-term.
• Avoid linking accounts (such as loyalty programs, travel portals, or payment apps) unless necessary.
• Pay with a virtual credit card number when available, which limits exposure.
• Use strong, unique passwords for rental accounts and avoid reusing credentials from other sites.

These actions won’t eliminate all risks, but they significantly reduce the amount of data available to cybercriminals.

Best Practices for Renting After a Breach

If you’re still uneasy about renting post-Hertz, here are a few best practices to consider:

1. Book through a travel agency or corporate account that manages security on your behalf.
2. Read privacy policies—companies are required to disclose how your data is handled.
3. Use minimal data sharing: decline extras like app connections, loyalty accounts, or unnecessary add-ons that require additional information.
4. Monitor your credit for unusual activity in the weeks and months after renting.

Being proactive is the best defense against identity misuse.

Role of Rental Companies in Mitigating Risks

Ultimately, the burden shouldn’t fall solely on consumers. Rental companies like Hertz must step up by:

• Encrypting sensitive data
• Reducing the amount of information stored long-term
• Providing identity protection services after breaches
• Being transparent about vendor relationships and risks

The companies that make the biggest strides in data protection may find themselves with a competitive advantage as customers weigh their options.

Legal and Regulatory Shifts in Breach-Safe Rental Policies

This breach may also spark new legal and regulatory changes. With data breaches becoming more common, lawmakers are increasingly scrutinizing how industries like travel and insurance handle consumer data.

Possible shifts include:

• Stricter notification timelines for breaches
• Higher fines for mishandling sensitive data
• Standardized data protection requirements for rental agencies

For consumers, these changes could mean greater transparency and stronger safeguards in the years ahead.

Long-Term Trends: Will This Change Consumer Habits Permanently?

The Hertz breach is unlikely to spell the end of rental cars, but it may permanently change consumer expectations. Travelers will still need vehicles, but they may prefer companies that limit data collection or demand cybersecurity certifications before booking.

Rental companies should also expect a general shift toward alternative mobility options like car-sharing, rideshares, or subscription models.

In other words, the breach may accelerate trends already underway, forcing the rental industry to rethink how much data it truly needs.

Should I avoid renting from Hertz now?

Not necessarily. Breaches can happen to any company. What matters most is how Hertz addresses the issue and protects customers moving forward.

Will rental insurance rates increase due to this breach?

Directly, no. But identity theft risks and fraud-related costs could influence future policies and offerings.

Are other companies equally risky?

Yes. All major rental companies face similar vulnerabilities. Your safest bet is to research how each company protects data before renting.

Can I limit the data I share during rentals?

Yes. Provide only what’s legally required, avoid linking accounts, and decline unnecessary add-ons.

Does this breach impact non-travel data like insurance?

It can. If your insurance information was stored with Hertz, it could be exposed. Monitor your insurance accounts and notify your provider of any suspicious activity.

In general, the Hertz data breach is a wake-up call for travelers, businesses, and the rental industry alike. While it may not eliminate the need for rental cars, it will likely change how customers share and protect their personal information.

If your information was exposed and later misused, remember, you may have legal options. At Morgan & Morgan, we fight for consumers impacted by corporate negligence. Contact us for a free case evaluation to learn more about your legal options.