Farmers Insurance covers rental cars only if you add rental reimbursement to your policy
Farmers does not automatically cover rental cars under a standard auto insurance policy. You have to purchase rental reimbursement coverage as an add-on. Once you have it, Farmers will reimburse you for the cost of a rental car when your vehicle is being repaired after a covered claim — typically a collision, comprehensive loss, or uninsured motorist incident.
The coverage pays up to a daily limit you choose when you buy the add-on, usually between $30 and $75 per day. Farmers also sets a maximum number of days the coverage will pay, often 30 days total per claim. You pay a small monthly premium for this coverage, usually a few dollars.
If you do not have rental reimbursement and your car is damaged, you will have to pay for a rental car out of pocket. Your collision or comprehensive claim will cover the repair, but not the rental expense while the repair happens.
Key Takeaways
- Rental reimbursement is an optional add-on to Farmers policies and does not come standard with any coverage type.
- The coverage pays a daily amount you select (typically $30 to $75) up to a maximum number of days per claim, usually around 30 days.
- You must have a covered claim — such as a collision or comprehensive loss — for the rental reimbursement to activate.
- Adding rental reimbursement costs a small monthly premium, usually between $3 and $8 depending on your daily limit and location.
How Farmers rental reimbursement works after a claim
When your car is damaged and you file a claim, Farmers will approve the repair and direct you to a repair shop (or let you choose one). Once the repair begins, your rental reimbursement coverage kicks in. You rent a car and keep your receipts.
After the repair is complete, you submit your rental receipts to Farmers along with your claim number. Farmers reimburses you for the rental cost, up to your daily limit and the maximum number of days on your policy. If you rented a car for $50 per day but your limit is $40 per day, Farmers pays $40 and you cover the $10 difference.
The coverage typically starts the day after your vehicle is taken to the repair shop and ends the day your car is ready to pick up. Some policies include a waiting period — usually one day — before reimbursement begins, so you are responsible for the first day's rental cost.
What claims trigger rental reimbursement coverage
Rental reimbursement covers rental cars when your vehicle is damaged by a covered peril. This includes collision claims (damage from an accident), comprehensive claims (theft, weather, vandalism, animal strikes), and uninsured or underinsured motorist claims (hit by an uninsured driver).
The coverage does not apply if your car breaks down due to mechanical failure, normal wear, or maintenance issues. It also does not cover rentals for any other reason — such as taking a trip while your car is in the shop for routine service. The damage must be sudden and unexpected, and your claim must be approved by Farmers.
Daily limits and maximum days explained
When you add rental reimbursement to your Farmers policy, you choose a daily limit. Common options are $30, $40, $50, $60, or $75 per day. This is the maximum Farmers will pay for each day of rental. If you rent a compact car for $35 per day and your limit is $30, you pay the extra $5.
Farmers also sets a maximum number of days per claim — usually 30 days, though this can vary. If your repair takes 45 days and your policy covers 30 days, Farmers pays for 30 days and you cover the remaining 15. Some policies have a lower maximum, such as 14 or 21 days, so check your declarations page to know your limit.
The daily limit and maximum days are separate. A $50 daily limit with a 30-day maximum means Farmers will pay up to $1,500 total per claim ($50 × 30 days), but only if the repair actually takes that long.
Cost of adding rental reimbursement to Farmers
The monthly premium for rental reimbursement varies based on your daily limit, your location, your driving record, and the type of vehicle you drive. Generally, a $30 daily limit costs less than a $75 daily limit. A higher-risk driver or someone in an urban area may pay more than someone in a rural area with a clean record.
Most drivers pay between $3 and $8 per month for this coverage. Over a year, that is $36 to $96. If you are in an accident and need a rental car for two weeks, the coverage typically pays for itself in the first few days of the rental.
To find out the exact cost for your situation, contact a Farmers agent or get a quote online. The premium will appear as a line item on your policy documents.
Alternatives if you do not have rental reimbursement
If you did not add rental reimbursement to your Farmers policy and you need a rental car after a claim, you have a few options. Some credit card companies offer rental car coverage as a cardholder benefit — check your card's terms to see if it covers collision damage to rental vehicles. Some rental car companies also offer damage waivers, though these are separate purchases and can be expensive.
You can also ask your repair shop if they offer loaner cars while your vehicle is being fixed. Many shops have loaner programs for customers, either free or for a small daily fee. This is often faster and cheaper than renting from a rental car company.
If you are in a situation where you cannot afford a rental and do not have coverage, talk to your Farmers agent about adding rental reimbursement retroactively. Some policies allow you to add coverage mid-term, though it typically will not cover claims that happened before the add-on was active.
How to add or modify rental reimbursement on your Farmers policy
To add rental reimbursement, contact your Farmers agent by phone, email, or through the Farmers website or mobile app. Tell them you want to add rental reimbursement coverage and ask what daily limits are available in your state. The agent will explain the cost and the maximum number of days your policy will cover.
Once you decide on a daily limit, the agent will update your policy. The coverage usually becomes active immediately or on your next billing date, depending on when you make the change. You will see the new premium on your next bill.
If you already have rental reimbursement and want to increase or decrease your daily limit, contact your agent the same way. Changes typically take effect right away or on your next renewal date.
Frequently Asked Questions
What if my repair takes longer than my maximum days?
Farmers will only reimburse you for the number of days covered by your policy. If your limit is 30 days and the repair takes 40 days, you pay for the extra 10 days yourself. You can ask the repair shop if they can expedite the work, or contact Farmers to see if they will extend coverage in unusual circumstances — though this is not may provide.
Can I use rental reimbursement if I rent a car while my car is in the shop for maintenance?
No. Rental reimbursement only covers rentals when your vehicle is damaged by a covered claim, such as a collision or theft. Routine maintenance, oil changes, or scheduled repairs do not trigger the coverage. The damage must be sudden and unexpected.
Do I have to use a specific rental car company?
Farmers does not require you to use a particular rental company. You can rent from any company you choose — Enterprise, Hertz, Budget, or a local rental agency. Keep your receipts and submit them to Farmers with your claim number for reimbursement.
What if the rental car costs more than my daily limit?
You pay the difference. If your daily limit is $40 and the rental costs $55, Farmers pays $40 and you cover the $15. To avoid this, rent a car in the same class as your vehicle or choose a less expensive rental option.
Does rental reimbursement cover rideshare or car-sharing services?
Rental reimbursement typically covers traditional rental car companies only. Coverage for rideshare services like Uber or Lyft, or car-sharing services like Zipcar, depends on your specific policy. Ask your Farmers agent whether these services are covered under your rental reimbursement add-on.