What State Farm Auto Insurance Covers for Rental Cars

State Farm covers rental cars only if you add rental reimbursement to your policy

State Farm's standard auto insurance does not cover rental cars. If your car is damaged in a covered accident or stolen, you pay for a rental out of pocket unless you have purchased an add-on called rental reimbursement coverage. This is a separate line item on your policy that you choose and pay extra for each month.

When you have rental reimbursement, State Farm will reimburse you for the cost of a rental car up to a daily limit while your car is being repaired or replaced. The daily limit is typically $30, $45, or $60 per day, depending on which level you chose when you set up the coverage. You pick the limit that fits your budget.

The coverage only kicks in after your car is damaged by a covered peril — collision, theft, weather, vandalism, or other events listed in your policy. It does not cover rentals for routine maintenance, recalls, or situations where your car is not damaged.

Key Takeaways

• State Farm rental reimbursement is an optional add-on you must purchase separately; it does not come with standard collision or comprehensive coverage.
• The coverage pays you back for rental car costs up to your chosen daily limit ($30, $45, or $60) while your vehicle is being repaired.
• You typically pay the rental company first and then submit the receipt to State Farm for reimbursement.
• The coverage applies only when your car is damaged by a covered peril, not for routine maintenance or when your car is drivable.

How to check if you have rental reimbursement on your policy

Log into your State Farm account online or call your agent and ask whether rental reimbursement coverage is listed on your current policy. Your policy document will show it as a separate line item with a daily limit amount next to it. If it is not there, you do not have it.

You can also check your policy declarations page, which is the summary page that lists all your coverages and their limits. Rental reimbursement will appear in the same section as collision and comprehensive coverage, not under liability.

What the daily limit means and how reimbursement works

The daily limit is the maximum State Farm will pay you back per day for a rental car. If you chose a $45 daily limit and you rent a car for $60 per day, State Farm pays $45 and you cover the $15 difference. If you rent a car for $35 per day, State Farm pays the full $35.

Most rental reimbursement policies also set a maximum number of days the coverage applies — often 30 days total per claim. This means if your car is in the shop for 60 days, you are covered for the first 30 days of rental costs and responsible for the rest.

To get reimbursed, you pay the rental company directly when you pick up the car, keep your receipt, and then send it to State Farm along with a claim form. State Farm processes the reimbursement and sends you a check or deposits the money into your account. The timeline varies but typically takes one to two weeks after State Farm receives your paperwork.

When rental reimbursement does and does not explore

Rental reimbursement covers you when your car is damaged by a covered peril and is being repaired at a shop. This includes accidents, theft, weather damage, vandalism, and fire. It also applies if your car is declared a total loss and you are waiting for the insurance payout to buy a replacement.

The coverage does not explore if your car breaks down due to mechanical failure, even if you have comprehensive coverage. It does not cover rentals while your car is in the shop for routine maintenance, recalls, or warranty work. It also does not cover rentals when your car is drivable but you choose to rent a car anyway.

If you are in an accident that is someone else's fault, their liability insurance may cover your rental costs instead. In that case, you would file a claim with their insurance company rather than using your own rental reimbursement coverage.

Adding or changing rental reimbursement coverage

You can add rental reimbursement to your policy at any time by contacting your State Farm agent or making changes online through your account. When you add it, you choose your daily limit. The coverage typically begins the day you add it, though you should confirm the effective date with your agent.

If you already have rental reimbursement but want to increase or decrease your daily limit, you can change it the same way. Lowering your limit will reduce your monthly premium; raising it will increase it. The cost of rental reimbursement varies by state and by your overall policy details, so ask your agent for a quote before you decide.

Alternatives if you do not have rental reimbursement

If your car is damaged and you do not have rental reimbursement coverage, you can still rent a car — you straightforward pay for it yourself. Some credit cards offer rental car reimbursement as a cardholder benefit, so check your card's terms to see if it covers accident-related rentals.

Some rental car companies offer their own damage waiver or insurance products at the counter, though these are usually expensive and may duplicate coverage you already have. Before you buy rental insurance at the counter, ask whether your personal auto policy or credit card already covers the rental.

If the accident was someone else's fault, you can file a claim with their liability insurance and ask them to cover your rental costs as part of the settlement. This process takes longer but does not require you to have your own rental reimbursement coverage.

Frequently Asked Questions

Does State Farm rental reimbursement cover rideshare or car-sharing services?

Rental reimbursement typically covers traditional rental car companies only, not rideshare services like Uber or Lyft or car-sharing platforms like Zipcar. Check your policy language or ask your agent whether alternative transportation is covered under your specific plan.

What if the repair takes longer than my daily limit allows?

Most policies cap rental reimbursement at 30 days per claim, even if repairs take longer. If your car is in the shop for 60 days, you are responsible for rental costs after day 30. You can ask your agent whether your policy has a different limit or whether you can request an extension in writing.

Can I use rental reimbursement if my car is at home and I just need a car to drive?

No. Rental reimbursement only applies when your car is being repaired or replaced due to a covered claim. If your car is drivable or you straightforward want an extra vehicle, the coverage does not explore.

Do I have to use a specific rental car company?

State Farm does not typically require you to use a specific rental company. You can rent from any company you choose, as long as you keep your receipt and submit it for reimbursement. Some policies may have preferred vendors that offer discounts, so ask your agent.

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

You pay the difference out of pocket. If your daily limit is $45 and the rental costs $70 per day, State Farm reimburses $45 and you pay $25. Choosing a higher daily limit when you set up the coverage protects you from larger out-of-pocket costs.