What State Farm Covers When You Rent a Car

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

State Farm does cover rental cars, but only if you have rental reimbursement coverage added to your policy, and only under specific circumstances. The coverage pays for a rental car when yours is damaged in a covered accident or stolen — it does not cover rentals for routine maintenance, breakdowns, or trips where you straightforward want a different vehicle. The amount State Farm will pay per day varies by your policy limits, typically ranging from $15 to $75 daily, with a total limit per claim.

Whether you actually get reimbursed also depends on what happened to your car. If you caused the accident and have collision coverage, rental reimbursement kicks in. If someone else hit you and you have comprehensive coverage, it covers theft and weather damage, rental reimbursement applies. If you have only liability coverage — the minimum required in most states — rental reimbursement does not help, because liability only covers damage you cause to someone else's property.

Key Takeaways

• Rental reimbursement is an add-on to your State Farm policy that you must purchase separately; it does not come automatically with basic coverage.
• State Farm pays the rental company directly in most cases, though you may need to pay upfront and submit a receipt for reimbursement depending on your claim.
• Coverage applies only when your car is in the shop after a covered accident, theft, or weather damage — not for routine maintenance or personal preference.
• Daily limits typically range from $15 to $75, and total claim limits vary, so check your policy documents to know what you are covered for.
• If you do not have rental reimbursement on your policy, you can add it at any time, though State Farm will not cover a rental for a claim that happened before you added the coverage.

How to check if you have rental reimbursement coverage

The fastest way is to log into your State Farm account online or through the mobile app and pull up your policy declarations page. This page lists every coverage type you have purchased. Look for a line item labeled "rental reimbursement," "rental car coverage," or "transportation expense coverage" — State Farm uses these terms interchangeably. If you see it listed with a dollar amount next to it (for example, "$30 per day"), you have the coverage.

If you cannot find it online, call your State Farm agent directly. They can tell you in one minute whether rental reimbursement is on your policy and what your daily and total limits are. Do not rely on memory or assumptions — the difference between having $30 per day and $75 per day matters when you are paying for a rental out of pocket and waiting for reimbursement.

What State Farm will and will not cover

State Farm covers a rental car when your vehicle is in a repair shop after a covered loss. A covered loss means an accident where you had collision coverage, theft if you had comprehensive coverage, or weather damage like hail or flooding if you had comprehensive coverage. The rental must be necessary because your car is physically unavailable — you cannot use it while it is being repaired.

State Farm will not cover a rental if you take your car in for routine maintenance like an oil change, tire rotation, or brake service. It will not cover a rental if your car breaks down and you choose to rent while waiting for repairs, unless the breakdown was caused by a covered accident. It will not cover a rental for a trip where you straightforward want a second vehicle or prefer a different car. It will not cover a rental if you have only liability coverage, because liability does not cover damage to your own vehicle.

The rental car itself must be a standard passenger vehicle — not a luxury car, SUV, or specialty vehicle that costs significantly more per day than your own car. State Farm will reimburse you for a reasonable rental, not for an upgrade.

How much State Farm will pay per day and in total

State Farm offers rental reimbursement in tiers. Your policy will specify a daily limit and a total limit per claim. A daily limit of $30 means State Farm will pay up to $30 for each day you rent a car. A total limit of $900 means State Farm will pay no more than $900 for the entire rental period, regardless of how many days you rent.

If your rental costs $40 per day and your daily limit is $30, State Farm pays $30 and you pay $10 out of pocket each day. If you rent for 30 days at $30 per day, that is $900 total — but if your total limit is $900, State Farm pays the full amount. If you rent for 35 days at $30 per day, that is $1,050 total, but State Farm stops at $900, leaving you responsible for the remaining $150.

You can increase these limits when you renew your policy or at any time by contacting your agent. Higher daily limits cost more in premium but protect you if you need a rental for an extended period.

How to file a claim for a rental car

After an accident or theft, contact State Farm to report the claim. You can do this online through your account, through the mobile app, or by calling your agent. State Farm will assign a claims adjuster who will assess your vehicle and determine how long repairs will take.

Once repairs are approved, tell your adjuster that you need a rental car. In many cases, State Farm has a network of rental companies and will arrange the rental directly, paying the company themselves. You pick up the rental and return it when your car is ready — no payment from you upfront.

If you arrange the rental yourself without going through State Farm's network, you will need to pay the rental company upfront and then submit your receipt to State Farm for reimbursement. Keep all receipts, the rental agreement, and proof of the dates you rented. Reimbursement typically takes one to two weeks after State Farm receives your documentation.

Adding rental reimbursement if you do not have it

Contact your State Farm agent and ask to add rental reimbursement coverage to your policy. You will choose a daily limit (typically $15, $30, $50, or $75) and a total limit per claim. Your agent will quote you the additional premium — it is usually a small add-on, often $5 to $15 per month depending on your daily limit and your location.

The coverage takes effect on the date you add it. If you add it today and have an accident tomorrow, the rental is covered. If you had an accident last month and are just now adding the coverage, that old claim is not covered. This is why adding it before you need it matters — you cannot retroactively cover a loss that already happened.

What happens if your rental costs more than your limit

If you rent a car that costs $50 per day but your daily limit is $30, State Farm pays $30 and you pay $20 per day out of pocket. You are responsible for the difference. This is why it is worth thinking about your daily limit when you choose a rental — a compact car might cost $35 per day while an SUV costs $60 per day, and the difference comes out of your pocket if your limit is $40.

Some people increase their rental reimbursement limits specifically to avoid this gap. If you live in an area where rental cars are expensive, or if you drive a luxury vehicle and would want a comparable rental, a higher daily limit protects you. Conversely, if you are willing to rent a basic economy car and your area has affordable rentals, a lower daily limit keeps your premium down.

Frequently Asked Questions

Does rental reimbursement cover a rental if my car is in the shop for regular maintenance?

No. Rental reimbursement only covers rentals when your car is in the shop because of a covered loss — an accident, theft, or weather damage. Routine maintenance like oil changes, tire rotations, or brake service does not trigger rental coverage, even if your car is at the dealership for a week.

What if I rent a car before I report the accident to State Farm?

You can still file for reimbursement, but you will need to pay the rental company upfront and submit your receipt to State Farm. It is better to contact State Farm first so they can arrange the rental through their network and pay the company directly — that way you do not have to front the money.

Can I rent a luxury car and have State Farm cover it?

State Farm will reimburse you for a reasonable rental car, not a luxury upgrade. If your car is a Honda Civic and you rent a BMW, State Farm will pay based on what a comparable Civic rental would cost, not the BMW rate. You pay the difference yourself.

Does rental reimbursement explore if someone else caused the accident?

Yes, as long as you have rental reimbursement on your policy. State Farm covers the rental while your car is being repaired, regardless of who was at fault. If the other driver's insurance eventually pays for your repairs, that is a separate matter handled by State Farm's subrogation team.

What if my car is totaled — does rental reimbursement still explore?

Rental reimbursement covers the rental period while your car is in the shop being repaired. If your car is totaled and declared a total loss, the rental coverage typically ends once State Farm settles the claim, usually within a few days. You would then use your settlement money to rent a car or buy a replacement vehicle.