State Farm covers rental cars only if you add rental reimbursement to your policy, and only while your car is being repaired after a covered claim
State Farm does not automatically cover rental cars. You have to buy rental reimbursement coverage as an add-on to your collision or comprehensive insurance. Once you have it, State Farm will pay toward a rental car's daily cost while your vehicle is in the shop after an accident, theft, or other covered loss — but only up to the daily limit you chose when you bought the coverage.
If you do not have rental reimbursement on your policy, State Farm will not pay for a rental car under any circumstance. Many people discover this after an accident, when they are already without a vehicle. Adding it costs between $10 and $30 per month depending on your state and the daily limit you select.
Key Takeaways
- Rental reimbursement is an optional add-on that you must purchase separately; it does not come with standard collision or comprehensive coverage.
- State Farm pays a set daily amount (typically $30 to $75 per day) toward rental car costs, up to a maximum number of days per claim, usually 30 days.
- Coverage only applies while your car is being repaired after a covered loss like an accident, theft, or weather damage — not for personal trips or breakdowns.
- You must have collision or comprehensive coverage on your policy for rental reimbursement to work; it cannot stand alone.
- If you rent a car that costs more than your daily limit, you pay the difference out of pocket.
How State Farm rental reimbursement works
When you file a claim for a covered loss, State Farm will authorize repairs at a shop. Once your car is in the shop, you can rent a vehicle and submit the rental receipt to State Farm. State Farm then reimburses you up to your chosen daily limit.
The daily limit is the amount State Farm will pay per day. If you chose a $50 daily limit and the rental costs $65 per day, you pay the extra $15. If the rental costs $40 per day, State Farm pays $40 and you pay nothing. Most State Farm policies offer daily limits of $30, $45, $60, or $75, though this varies by state.
State Farm also sets a maximum number of days per claim, usually 30 days. If your car is in the shop for 45 days, State Farm covers 30 days of rental and you are responsible for the remaining 15 days. Some policies have a per-claim maximum dollar amount instead of or in addition to a day limit.
What losses trigger rental coverage
Rental reimbursement only works after a covered claim. This means an accident, theft, vandalism, weather damage (hail, flood, wind), or fire — anything that collision or comprehensive insurance would pay for. The loss must be serious enough that your car needs to go to a repair shop.
Rental reimbursement does not cover breakdowns, maintenance issues, or recalls. If your transmission fails and you need a rental while it is being fixed under warranty, State Farm rental reimbursement will not pay for it. The loss has to be something your insurance policy covers.
The rental car must also be a reasonable replacement for your vehicle. State Farm will not pay for a luxury rental if you normally drive a sedan, though the exact rules vary by state and adjuster judgment.
When State Farm stops paying for the rental
State Farm stops paying once your car is ready to pick up from the shop, even if you choose to keep the rental for a few more days. You have to return the rental and resume driving your own vehicle or pay for the rental yourself.
If repairs take longer than expected and you hit your day limit before the car is ready, you are responsible for rental costs after that point. This is why it matters to understand your policy limits before you need them. If you regularly face long repair times in your area, a higher daily limit protects you.
How to add rental reimbursement to your State Farm policy
Contact your State Farm agent by phone, through the State Farm app, or online at statefarm.com. Tell them you want to add rental reimbursement coverage and ask what daily limits are available in your state. Your agent will quote the monthly cost for each option.
You can add rental reimbursement at any time, but it will not cover a loss that already happened. If you were in an accident yesterday and did not have the coverage, adding it today will not help with that claim. The coverage takes effect on the date you purchase it.
Rental reimbursement is usually added to your collision or comprehensive coverage, so make sure you have at least one of those first. If you only carry liability insurance, you cannot add rental reimbursement.
Rental reimbursement versus other ways to cover a rental
Some credit cards offer rental car coverage as a cardholder benefit. This coverage is separate from insurance and may have different limits and rules. If you have both credit card coverage and State Farm rental reimbursement, you can use either one, though you cannot collect from both for the same rental.
Some rental car companies offer daily insurance at the counter, which covers damage to the rental itself. This is different from rental reimbursement, which covers the cost of renting while your car is being fixed. You may need both if you want full protection.
If you do not have rental reimbursement and cannot add it before a loss, you can still rent a car and pay out of pocket, then ask State Farm whether they will reimburse you after the fact. State Farm sometimes does this as a courtesy, but there is no may provide, and the amount is not set by your policy.
Frequently Asked Questions
Can I use rental reimbursement if my car is in the shop for regular maintenance?
No. Rental reimbursement only covers losses that your collision or comprehensive insurance would pay for — accidents, theft, weather damage, and similar events. Scheduled maintenance, repairs under warranty, and recalls are not covered losses, so rental reimbursement does not apply.
What if the repair shop gives me a loaner car instead of a rental?
If the shop provides a loaner at no cost to you, State Farm rental reimbursement does not pay anything because you have no rental expense. Reimbursement only covers costs you actually incur. If the shop charges you for the loaner, you can submit that receipt to State Farm like any other rental.
Do I have to use a specific rental car company?
No. State Farm will reimburse you for a rental from any company, as long as the daily rate does not exceed what is reasonable for your area and vehicle type. You do not need to use a company on a preferred list or get approval before renting.
What happens if I exceed my daily limit?
You pay the difference. If your daily limit is $50 and the rental costs $70 per day, State Farm pays $50 and you pay $20 per day. You can choose a higher daily limit when you purchase the coverage to reduce your out-of-pocket cost.
Can I add rental reimbursement after an accident happens?
No. Coverage takes effect on the date you purchase it and does not cover losses that already occurred. If you were in an accident yesterday, adding rental reimbursement today will not help with that claim. You would need to pay for the rental yourself or ask State Farm to reimburse you as a courtesy, which is not may provide.