Does Farmers Insurance Cover Rental Cars While Yours Is Being Repaired

Farmers Insurance covers rental cars, but only if you add rental reimbursement to your policy

Farmers Insurance does not automatically pay for a rental car when yours is in the shop. You have to buy rental reimbursement coverage as an add-on to your collision or comprehensive coverage. Without it, you pay for the rental yourself. With it, Farmers reimburses you up to a daily limit — typically $30 to $75 per day, depending on which limit you chose when you bought the coverage.

The coverage kicks in only after an accident or damage that your collision or comprehensive coverage would pay for. It does not cover rentals during routine maintenance, recalls, or breakdowns. It also does not cover rentals if you caused an accident but did not have collision coverage in the first place.

If you do not have rental reimbursement coverage and need a rental car now, you will need to pay out of pocket. Some credit cards offer rental car reimbursement as a cardholder benefit, and some employers offer it through their benefits plans — those are separate from your insurance policy.

Key Takeaways

• Farmers Insurance requires you to add rental reimbursement coverage to your policy; it is not included automatically.
• The coverage pays a daily amount (usually $30 to $75) toward your rental car costs while your car is being repaired after a covered accident or damage.
• Rental reimbursement only works if you also have collision or comprehensive coverage on your policy.
• The coverage does not explore to rentals during maintenance, recalls, or mechanical breakdowns — only after damage covered by your collision or comprehensive insurance.
• If you do not have this coverage, credit card benefits or employer programs may offer rental car reimbursement as an alternative.

When Farmers rental coverage actually pays

Rental reimbursement covers the rental car only while your vehicle is being repaired due to a covered loss. A covered loss means damage that your collision or comprehensive coverage would pay for — a car accident, theft, vandalism, weather damage, or hitting an animal.

The clock starts when the repair shop has your car and stops when you pick it up. Farmers pays the rental company directly in some cases, or reimburses you if you paid upfront. Either way, you are only covered up to your daily limit. If you rent a car that costs $80 per day and your limit is $50, you pay the extra $30.

The total payout is also capped. Most Farmers policies cap rental reimbursement at $900 to $1,500 total per claim, which means if your car is in the shop for 30 days at $50 per day, you would hit that cap. Check your policy documents or call your agent to see what your specific limits are.

How to add rental reimbursement to your Farmers policy

You add rental reimbursement when you first buy your policy or by calling your Farmers agent to modify your existing policy. It is a separate line item on your bill, and the cost varies based on your location, driving history, and the daily limit you choose.

When you call or meet with your agent, tell them the daily limit you want. Common options are $30, $50, or $75 per day. A higher daily limit costs more per month but covers more expensive rentals. If you drive an older car or rarely take long trips, a $30 limit may be enough. If you drive a newer car or need to rent frequently for work, $50 or $75 makes more sense.

Once you add the coverage, it is active when ready (or on the date you choose). You do not have to do anything else unless you need to use it after an accident.

What happens when you file a rental claim with Farmers

After an accident or damage, contact Farmers to report the claim. Tell them you need a rental car while yours is being repaired. Farmers will either direct you to a preferred rental company (which may waive your deductible or offer a discount) or tell you to rent from any company and submit the receipt for reimbursement.

If Farmers has a preferred rental partner, using that company is usually faster and simpler — the rental company bills Farmers directly, and you may not have to pay anything upfront. If you rent from a non-preferred company, you pay the rental company and then submit your receipt, credit card statement, and proof of repair dates to Farmers for reimbursement.

Keep all receipts and documentation. Farmers will ask for the repair estimate or invoice showing when the shop had your car, the rental agreement showing the daily rate and rental dates, and your proof of payment. Reimbursement typically takes one to two weeks after Farmers receives everything.

Situations where Farmers rental coverage does not explore

Rental reimbursement does not cover rentals during routine maintenance, tire repairs, oil changes, or recalls — only damage covered by collision or comprehensive insurance. It also does not cover rentals if your car breaks down due to mechanical failure, even if you have comprehensive coverage.

If you caused an accident but do not have collision coverage, rental reimbursement will not pay either, because there is no covered loss to trigger it. The same applies if you have collision coverage but your deductible is so high that you chose not to file a claim — Farmers only pays for rentals related to claims they are actually paying for.

Rental reimbursement also does not cover the cost of damage to the rental car itself. If you damage the rental while driving it, that is the rental company's insurance or your own liability coverage — not your Farmers rental reimbursement.

Comparing Farmers rental coverage to other options

Some credit cards offer rental car reimbursement as a cardholder benefit. These typically cover the full cost of the rental (not just a daily limit) if you charge the rental to that card. However, credit card coverage usually only applies if your own insurance does not cover it, and some cards exclude certain types of rentals or have other restrictions. Check your card's benefits guide to see what is covered.

Employer-provided rental car benefits work similarly — they may cover rentals after an accident or damage, but the terms vary by employer. If you have both employer coverage and Farmers rental reimbursement, your Farmers coverage usually pays first up to its limit, and employer coverage may cover the rest.

If you do not have rental reimbursement coverage and do not have a credit card or employer benefit, you will pay for the rental out of pocket. For a short repair (a few days), this may be cheaper than adding rental coverage to your policy. For longer repairs, the daily cost adds up quickly.

Frequently Asked Questions

What if my repair takes longer than expected?

Farmers pays for the rental for as long as the repair takes, up to your daily limit and total policy cap. If the repair shop delays the work, the rental period extends. Keep the repair shop's documentation showing when they had your car and when they returned it — that is what Farmers uses to calculate your reimbursement.

Can I rent a luxury car and have Farmers pay for it?

Farmers pays up to your daily limit, regardless of which car you rent. If you rent a $150-per-day luxury car but your limit is $50, you pay the extra $100. Most people rent a standard mid-size car to stay within their daily limit and avoid out-of-pocket costs.

Do I need rental coverage if I have roadside information?

Roadside information covers towing and lockouts, not rental cars. Rental reimbursement is separate and covers the cost of a rental vehicle while yours is being repaired. You can have both, and they serve different purposes.

What if I use a rental car for rideshare or delivery while mine is being repaired?

Farmers rental reimbursement covers the rental cost itself, but your personal auto policy does not cover rideshare or delivery work. You would need commercial coverage for that use. Check with your agent about whether commercial coverage is available and whether it would explore to a rental car.

Can I add rental coverage after an accident happens?

No. Rental reimbursement must be on your policy before the accident occurs. You cannot add it after a loss and have it cover that loss. If you do not have it now and want it, add it today so it is active for future claims.