What State Farm Car Insurance Covers for Rental Cars

State Farm's rental car coverage depends on which policy add-on you have

State Farm does not automatically cover rental cars under a standard auto insurance policy. You need to add rental reimbursement coverage to your policy if you want State Farm to pay for a rental car when yours is being repaired after a covered accident or other loss. Without this add-on, State Farm will not pay rental car costs.

Rental reimbursement is optional coverage you purchase separately. It covers the daily rental cost of a car while your vehicle is in the shop. The amount State Farm will pay per day, and the total number of days they will cover, depends on the limits you choose when you add the coverage to your policy.

Some State Farm customers also have rental car coverage through their credit card or employer, which may cover rental costs regardless of whether they have State Farm's rental reimbursement add-on. But if you want State Farm itself to pay, you must have added rental reimbursement to your policy before you need it.

Key Takeaways

• State Farm rental reimbursement coverage is an optional add-on that you must purchase before your car needs repair.
• The coverage pays a set daily amount (commonly $30 to $50 per day) for a rental car while yours is being fixed after a covered loss.
• You choose your daily limit and the maximum number of days of coverage when you add the policy rider.
• State Farm will only reimburse you for a rental car if the damage to your vehicle comes from a covered cause, such as a collision or comprehensive loss.

How much State Farm pays for rental cars

State Farm rental reimbursement coverage pays up to a daily limit you select, multiplied by the number of days your car is in the shop. Common daily limits range from $30 to $50, though the exact options available depend on your state and your specific policy. If you choose a $40 daily limit and your car is in the shop for 10 days, State Farm would reimburse you up to $400.

You also set a maximum number of days the coverage will pay for. Many policies cap rental reimbursement at 30 days per claim, though some allow higher limits. Once you reach either the daily limit or the total number of days, State Farm stops paying for the rental car.

State Farm pays the rental car company directly in some cases, or reimburses you after you submit a receipt and proof of the repair. The exact process depends on your local State Farm agent and the rental car company you use. Ask your agent about the process before you need it, so you know whether to pay out of pocket and seek reimbursement later, or whether State Farm will pay the rental company directly.

When State Farm covers rental cars

State Farm rental reimbursement only pays for a rental car if the damage to your vehicle comes from a covered cause under your policy. If you have collision coverage and your car is hit by another vehicle, rental reimbursement will cover the rental while your car is repaired. If you have comprehensive coverage and your car is stolen or damaged by weather, rental reimbursement will cover the rental during that repair.

If your car breaks down due to mechanical failure or wear and tear, rental reimbursement will not cover a rental car, because mechanical failure is not a covered loss under any auto insurance policy. Similarly, if you cause damage while driving without collision coverage, State Farm will not pay for a rental car.

The repair must actually be happening for the coverage to pay. State Farm will not reimburse you for a rental car while your vehicle is sitting at home waiting to be taken to the shop, or while you are deciding whether to repair it.

What rental cars State Farm will pay for

State Farm rental reimbursement covers the cost of renting a standard economy or mid-size car from a rental company. You cannot rent a luxury vehicle or specialty car and expect State Farm to cover the full cost. If you rent a car that costs more per day than your coverage limit, you pay the difference yourself.

The coverage applies to rental cars from major rental companies like Enterprise, Hertz, Budget, and Avis. Some State Farm policies have preferred rental partners that offer discounts to policyholders, so ask your agent which companies have agreements with State Farm in your area.

Rental reimbursement does not cover rideshare services like Uber or Lyft, taxis, or public transportation. It covers only traditional rental cars from a rental agency.

How to add rental reimbursement to your State Farm policy

Contact your State Farm agent to add rental reimbursement coverage to your auto policy. You can reach your agent by phone, through the State Farm website, or by visiting a local office. When you call or meet, tell your agent you want to add rental reimbursement and ask what daily limits and maximum day limits are available in your state.

Your agent will quote you a price for the coverage based on the daily limit and total days you choose. The cost is usually small — often a few dollars per month — but varies by state and by your driving record. Once you agree to the price, your agent will add the coverage to your policy, and it becomes active on the date your agent specifies.

You cannot add rental reimbursement after your car is damaged and you need a rental. The coverage must be in place before the loss occurs. If you do not have it and your car is in the shop, you will have to pay for the rental yourself.

Rental car coverage from other sources

Some credit cards include rental car coverage as a cardholder benefit. If you rent a car and charge it to a card that offers rental coverage, the card's insurance may cover damage to the rental car or reimburse you for certain costs. This coverage is separate from State Farm and does not require you to have State Farm rental reimbursement.

Some employers offer rental car coverage through their employee benefits programs. If your employer provides this benefit, you may be covered for rental cars without adding coverage to your State Farm policy. Check your employee handbook or ask your HR department whether rental car coverage is included in your benefits.

If you have coverage from another source, you do not need to buy State Farm rental reimbursement unless you want the extra protection. However, if you do not have coverage from a credit card or employer, adding State Farm rental reimbursement is the most direct way to may support State Farm will pay for a rental car when your vehicle is being repaired.

Frequently Asked Questions

Will State Farm pay for a rental car if I don't have rental reimbursement coverage?

No. State Farm will only pay for a rental car if you have added rental reimbursement coverage to your policy before the loss occurs. Without this add-on, you will have to pay for the rental car yourself. If you do not have rental reimbursement and your car is damaged, contact your State Farm agent when ready to ask whether you can add it retroactively, though most policies do not allow this.

How long does State Farm take to pay for a rental car?

If State Farm pays the rental company directly, the rental company will know you are covered when you pick up the car. If you pay out of pocket and submit a receipt for reimbursement, State Farm typically processes the claim within one to two weeks, though this varies by location. Ask your agent about the timeline in your area when you add the coverage.

Does rental reimbursement cover damage to the rental car?

No. Rental reimbursement covers only the daily cost of renting a car while yours is being repaired. It does not cover damage to the rental car itself. Damage to the rental car is covered by the rental company's insurance or by your own auto policy's liability coverage if you caused the damage. Ask the rental company about their damage waiver options when you pick up the car.

Can I use rental reimbursement if my car is in the shop for maintenance?

No. Rental reimbursement only covers rental cars when your vehicle is being repaired after a covered loss, such as an accident or theft. Regular maintenance, oil changes, and scheduled repairs are not covered losses, so rental reimbursement will not pay for a rental car during those repairs.