What State Farm Car Insurance Covers When You Rent a Vehicle

State Farm's rental car coverage depends on which policy you hold and what caused you to need the rental

State Farm does not automatically cover rental cars under a standard auto insurance policy. Whether your rental is covered depends on two things: whether you added rental reimbursement coverage to your policy, and whether the rental is connected to a covered claim — usually a collision, theft, or weather event that makes your own car unusable.

If you have rental reimbursement coverage and your car is damaged in a covered incident, State Farm will pay toward your rental expenses up to a daily limit you chose when you bought the coverage. If you do not have this coverage, or if you are renting a car for a trip or vacation unrelated to a claim, State Farm's policy does not cover the rental itself.

Some credit cards and employer policies cover rental cars separately, so check those before assuming you have no coverage at all.

Key Takeaways

• Rental reimbursement coverage is an optional add-on to a State Farm policy that covers daily rental costs when your car is being repaired after a covered loss.
• You choose the daily limit when you add the coverage — common limits are $30, $45, or $60 per day — and State Farm pays up to that amount.
• The rental must be connected to a covered claim, such as a collision, theft, or weather damage; State Farm does not cover rentals for personal trips or vacations.
• Your State Farm policy does not extend to cover damage you cause while driving the rental car unless the rental company's insurance is in place.
• Some credit cards and employer benefits include rental car coverage, so check those sources before purchasing additional coverage from State Farm.

How rental reimbursement coverage works with State Farm

Rental reimbursement is a separate line item you can add to your State Farm auto policy. When you add it, you choose a daily limit — typically $30, $45, $60, or $75 per day, depending on what State Farm offers in your state. You also choose a maximum number of days the coverage will pay for, often 30 days.

If your car is damaged in a covered incident — a collision, theft, vandalism, weather event, or other peril listed in your policy — and you rent a car while yours is being repaired, State Farm will reimburse you for the rental cost up to your daily limit. If the rental costs $55 per day and your limit is $45, State Farm pays $45 and you pay the $10 difference.

The coverage begins the day your car is taken in for repair and ends when the repair is complete or when you reach your maximum number of days, whichever comes first. You will need to provide State Farm with a copy of the rental agreement and proof of the repair to file a claim.

What State Farm rental coverage does not include

State Farm's rental reimbursement coverage does not pay for damage you cause while driving the rental car. The rental company's insurance — which you can purchase at the rental counter — covers that. If you decline the rental company's coverage and cause an accident, you are responsible for the damage.

Rental reimbursement also does not cover rentals that are not tied to a claim. If you are taking a vacation, borrowing a car for a road trip, or renting because your car is in the shop for routine maintenance, State Farm will not pay. The coverage only applies when your car is damaged in a covered incident and is being repaired as a result.

Additionally, if your State Farm policy has a high deductible — say $1,000 — and you are in a minor accident, you may choose not to file a claim because the repair cost is below your deductible. In that case, you cannot use rental reimbursement, because there is no covered claim to trigger it.

How to add rental reimbursement to your State Farm policy

You can add rental reimbursement coverage by contacting your State Farm agent directly — by phone, through your online account, or in person at a local office. When you call or meet, tell your agent you want to add rental reimbursement and ask what daily limits and maximum days are available in your state.

Your agent will quote you a price for each option. The cost is usually modest — often $10 to $30 per year depending on the daily limit you choose — but varies by location and your driving history. Once you agree, the coverage takes effect when ready or on the date you specify.

Keep a copy of your policy documents showing the rental reimbursement coverage, the daily limit, and the maximum number of days. You will need this information when you file a claim.

What to do if your car is damaged and you need a rental

Contact State Farm as soon as possible after the incident that damaged your car. Report the damage and tell your agent you will need a rental car while repairs are being made. State Farm may direct you to a specific rental company or network, or you may be able to choose your own.

Some State Farm agents can arrange the rental directly with a partner company, which simplifies the process. In other cases, you rent the car yourself and then submit the rental agreement and receipt to State Farm for reimbursement. Ask your agent which process applies to you.

Keep all receipts and documents related to the rental, including the rental agreement, daily rate, and proof of the repair timeline. When you file your claim, provide these documents along with the repair estimate or invoice from the body shop.

Other sources of rental car coverage to check first

Before paying for rental reimbursement through State Farm, check whether you already have coverage elsewhere. Many credit cards — particularly premium travel cards — include rental car coverage as a cardholder benefit. This coverage typically applies to rentals anywhere in the world, not just when your car is in the shop.

Some employers offer rental car coverage through their benefits package, and some homeowners or renters insurance policies include it as well. If you have coverage through any of these sources, you may not need to add it to your State Farm policy.

Read the terms of any existing coverage carefully. Some credit card coverage applies only to rentals paid with that card, and some has exclusions for certain types of vehicles or rental periods. If your existing coverage has gaps, adding State Farm's rental reimbursement can fill them.

Frequently Asked Questions

Does State Farm cover rental cars if I rent one for a vacation?

No. State Farm's rental reimbursement coverage only applies when your own car is damaged in a covered incident and is being repaired. Rentals for personal trips, vacations, or any other reason unrelated to a claim are not covered by State Farm.

What if the rental car costs more than my daily limit?

You pay the difference. If your daily limit is $45 and the rental costs $65 per day, State Farm pays $45 and you are responsible for the $20. This is why choosing the right daily limit when you add the coverage matters.

Can I use rental reimbursement if I have a high deductible and choose not to file a claim?

No. Rental reimbursement only applies when you file a claim for a covered loss. If your repair cost is below your deductible and you decide not to file, you cannot use rental reimbursement. The coverage is tied to the claim, not to the repair itself.

Does State Farm's rental coverage include damage I cause while driving the rental car?

No. State Farm's rental reimbursement covers the cost of renting the car, not damage to it. You must purchase damage coverage from the rental company or rely on your personal auto policy to cover damage you cause while driving the rental.

How much does rental reimbursement coverage cost?

The cost varies by state, your driving history, and the daily limit you choose. It is typically $10 to $30 per year, but your State Farm agent can quote you the exact price for your situation and the coverage options available where you live.