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 when your own car is damaged or disabled by a covered loss. If you rent a car for a vacation or because you want to, State Farm will not pay for it. The coverage reimburses you for the daily rental cost up to a limit you choose when you buy the policy — typically $30, $45, or $60 per day.
Rental reimbursement is not automatic. You have to request it when you purchase or renew your auto policy. It costs a small amount per month — usually a few dollars — but many people skip it because they do not think they will need it. If you do not have it and your car is hit by another driver, you will pay the rental bill yourself.
Key Takeaways
- State Farm rental coverage only works when your car is damaged by a covered loss like a collision, theft, or weather — not for personal travel or convenience.
- You must add rental reimbursement coverage to your policy before you need it; it does not come standard with collision or comprehensive coverage.
- State Farm reimburses you up to your chosen daily limit, which ranges from $30 to $60 per day, with a total limit per claim (often $900 to $1,800).
- The coverage begins after a waiting period — usually 24 hours after the loss — and ends when your car is repaired or the total limit is reached.
- If you rent a car while waiting for repairs, keep your receipt and rental agreement to submit to State Farm for reimbursement.
When State Farm will pay for a rental car
State Farm pays for a rental car only when your vehicle is damaged or disabled by a loss covered under your collision or comprehensive policy. This means a car accident, theft, vandalism, weather damage, or a mechanical breakdown that leaves your car unable to drive. The rental must be necessary because your car is in the shop, not because you chose to rent for another reason.
The coverage does not apply to rideshare, car-sharing services like Zipcar, or peer-to-peer rentals. It covers traditional rental agencies — companies like Enterprise, Hertz, Budget, or Avis. Some State Farm policies also cover rental cars if you are injured in an accident and temporarily unable to drive your own vehicle, though this varies by state and your specific policy.
Daily limits and maximum payouts
When you add rental reimbursement to your State Farm policy, you choose a daily limit. Common options are $30, $45, or $60 per day. State Farm will reimburse you up to that amount for each day you rent a car. If you rent a car that costs $75 per day but your limit is $45, State Farm pays $45 and you pay the remaining $30.
Your policy also has a total limit per claim — the maximum State Farm will pay for the entire rental period. This is often calculated as your daily limit multiplied by 30 days, so a $45 daily limit typically means a $1,350 total per claim. If your car is in the shop for 45 days, you would reach that limit and pay for any additional days yourself.
The waiting period and when coverage starts
State Farm rental reimbursement usually does not begin immediately after your loss. Most policies include a waiting period of 24 hours. This means if your car is damaged on Monday, coverage for a rental car does not start until Tuesday. You pay for the first day of rental yourself.
This waiting period exists to discourage people from renting a car for minor damage that could be repaired quickly. If you have an accident on Monday and your car can be fixed by Wednesday, you might only rent for one or two days anyway, and the waiting period limits what State Farm has to pay. Once the 24 hours pass, coverage applies to each day you rent until your car is repaired or you reach your policy limit.
How to file a rental car claim with State Farm
When your car is damaged and you need a rental, contact State Farm as soon as possible to report the loss. You can call your agent, use the State Farm mobile app, or call the claims line. Tell them you need a rental car and ask whether your policy includes rental reimbursement coverage. If it does, State Farm may direct you to a rental agency they work with, or you can rent from any company and submit the receipt later.
Keep your rental agreement and all receipts. When you return the rental car, submit these documents to State Farm along with your claim. Include the dates you rented, the daily rate, and the total cost. State Farm will review the claim and reimburse you up to your daily limit and total policy limit. Reimbursement usually takes one to two weeks after you submit the paperwork.
Some State Farm agents can arrange the rental directly with a partner agency, which means the rental company bills State Farm and you do not have to pay upfront. Ask your agent if this option is available in your area. It simplifies the process because you do not have to wait for reimbursement.
What happens if you do not have rental coverage
If your policy does not include rental reimbursement and your car is damaged, you will have to pay for a rental car out of pocket. Rental cars typically cost $40 to $80 per day depending on the car type and location. If your car is in the shop for two weeks, that is $560 to $1,120 in rental costs you cannot recover.
You can add rental reimbursement coverage to your policy at any time, but it will not cover a loss that has already happened. If you are in an accident today and do not have rental coverage, you cannot add it tomorrow and claim the rental costs. Coverage only applies to losses that occur after you add it to your policy.
Rental coverage from the rental car company or credit card
Even if State Farm does not cover your rental, you may have other options. Some credit cards include rental car insurance if you book the rental with that card. American Express, Chase Sapphire Reserve, and other premium cards often cover damage to rental vehicles. Check your card's benefits guide to see what is included.
The rental car company itself also offers damage coverage at the counter — usually called a collision damage waiver or loss damage waiver. This covers damage to the rental car itself, not your own vehicle's rental costs. It is expensive (often $15 to $30 per day) and usually duplicates coverage you already have through your own auto insurance or credit card, so most people decline it.
If you are renting a car while yours is being repaired, State Farm rental reimbursement is the most direct way to cover the cost. If you do not have it, a credit card with rental coverage is your next best option.
Frequently Asked Questions
Does State Farm rental coverage work if I rent a car while traveling?
No. Rental reimbursement only covers cars you rent because your own vehicle is damaged or disabled by a covered loss. If you rent a car for a vacation, business trip, or because you want a different vehicle, State Farm will not reimburse you. The coverage is strictly for temporary transportation while your car is being repaired.
What if the rental car costs more than my daily limit?
You pay the difference. If your daily limit is $45 and the rental costs $65 per day, State Farm reimburses $45 and you pay $20 out of pocket each day. You can choose a higher daily limit when you renew your policy to reduce this gap, but it will cost more per month.
How long does rental coverage last?
Coverage lasts until your car is repaired and returned to you, or until you reach your total policy limit for that claim — whichever comes first. Most policies limit coverage to 30 days per claim, though some allow up to 45 days. If repairs take longer, you pay for additional rental days yourself.
Can I add rental coverage after an accident?
No. Rental reimbursement must be on your policy before the loss occurs. You cannot add it after an accident and use it to cover rental costs from that accident. You can add it to your policy now to cover future losses.
Does rental coverage apply if someone else's insurance is paying for my repairs?
Yes, in most cases. If another driver caused the accident and their insurance is liable for repairs, State Farm rental reimbursement still covers your rental car costs. However, you may be able to recover rental costs from the at-fault driver's insurance as well. Ask State Farm how to coordinate the two claims to avoid paying twice.