State Farm covers rental cars, but only if you add rental reimbursement to your policy
State Farm does not automatically cover rental car costs. 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 for a rental car while your vehicle is being repaired after a covered accident or loss — up to a daily limit you choose when you buy the coverage.
The coverage works only for repairs that result from a collision, theft, weather, vandalism, or other events your collision or comprehensive policy covers. If you cause an accident and have collision coverage with rental reimbursement added, State Farm pays the rental bill. If you don't have the add-on, you pay for the rental yourself.
Key Takeaways
- Rental reimbursement is an optional add-on you purchase separately; State Farm will not cover rental cars without it.
- You choose a daily limit — typically $30, $45, or $60 per day — when you add the coverage to your policy.
- The coverage applies only to repairs from accidents, theft, weather, or other events your collision or comprehensive insurance covers.
- State Farm pays the rental company directly if you use one of their preferred vendors, or reimburses you if you rent elsewhere.
- The coverage has a maximum number of days per claim, usually 30 days, so very long repairs may not be fully covered.
How rental reimbursement coverage works at State Farm
When you file a claim for a covered loss, you tell State Farm you need a rental car. If you have rental reimbursement on your policy, State Farm will either arrange the rental through one of their preferred vendors or reimburse you for a rental you arrange yourself. The daily limit you chose when you bought the coverage is what State Farm will pay per day.
State Farm typically caps rental reimbursement at 30 days per claim. If your car takes longer to repair, you pay the difference yourself. Some policies also have a maximum total payout — for example, $1,800 total on a $60-per-day limit — so check your policy documents to see what applies to yours.
You do not need to wait for State Farm to approve the rental before you get one. You can rent a car immediately after the loss and submit the receipt to State Farm later. However, using a State Farm preferred vendor is usually faster because they bill State Farm directly and you avoid the reimbursement process.
What rental reimbursement costs and how to add it
Rental reimbursement is inexpensive — usually $10 to $25 per year depending on the daily limit you choose. A higher daily limit ($60 per day) costs more than a lower one ($30 per day), but the difference is small. You can add it to your policy online, by phone, or through your State Farm agent.
When you add the coverage, you select a daily limit. Common options are $30, $45, and $60 per day. Choose the limit based on what rental cars cost in your area and what you can afford to pay out of pocket if the daily limit is not enough. If you drive an expensive car or live in a city where rentals are costly, a higher limit makes sense. If you drive an older vehicle or live in a rural area, a lower limit may be sufficient.
You can change your daily limit or remove the coverage at any time. If you remove it and later have a loss, you will not be covered for rental costs, so think carefully before dropping it.
When State Farm rental reimbursement does and does not apply
Rental reimbursement covers rentals needed because of a loss your collision or comprehensive insurance covers. That includes accidents you cause, accidents someone else causes, theft, vandalism, weather damage, hitting an animal, and falling objects. It does not cover rentals for routine maintenance, breakdowns, or accidents that your liability coverage would handle (meaning accidents where you are not at fault and the other driver's insurance pays).
If you are at fault in an accident and have collision coverage with rental reimbursement, you are covered. If you are not at fault and the other driver's insurance is paying for repairs, you may still use your rental reimbursement, but State Farm may try to recover the cost from the other driver's insurance later. This is called subrogation, and it does not affect your coverage — you still get the rental paid.
Rental reimbursement does not cover long-term rentals while you wait for parts or for other reasons unrelated to the repair itself. Once your car is ready, the coverage stops, even if you keep the rental for a few more days.
State Farm preferred rental vendors versus renting elsewhere
State Farm has agreements with rental companies like Enterprise, Hertz, and Avis at many locations. If you rent from a preferred vendor, State Farm bills them directly and you typically pay nothing out of pocket. The rental company knows to charge State Farm up to your daily limit, and the process is streamlined.
If you rent from a non-preferred company or a local rental agency, you pay the full bill upfront and submit the receipt to State Farm for reimbursement. State Farm will reimburse you up to your daily limit, but you have to wait for the check or credit to your account. This usually takes one to two weeks.
Ask your State Farm agent or claims adjuster for a list of preferred vendors in your area before you rent. If you are in a rural area or need a specific vehicle type, a preferred vendor may not be available, and you will need to rent elsewhere and seek reimbursement.
What to do if your repair takes longer than your coverage allows
If your car is not ready within 30 days (or whatever maximum your policy states), you have a few options. You can ask State Farm to extend the rental reimbursement if the delay is due to parts availability or other circumstances beyond the repair shop's control. State Farm may approve an extension, but it is not may provide.
You can also ask the repair shop to provide a written estimate of how long the repair will take before you file a claim. If you know the repair will take longer than 30 days, contact State Farm before you rent to discuss your options. Some policies allow exceptions for major repairs.
If State Farm denies an extension and you need to keep the rental, you pay for the additional days yourself. This is why choosing a higher daily limit when you buy the coverage can be worthwhile — it gives you more cushion if a repair runs long.
How to file a claim and get a rental car through State Farm
After an accident or loss, contact State Farm to file a claim. You can do this online, by phone, or through the State Farm mobile app. Tell the claims adjuster that you need a rental car. If you have rental reimbursement coverage, the adjuster will explain your options and may provide you with a list of preferred vendors.
If you use a preferred vendor, the adjuster will often arrange the rental for you or provide you with a reference number to give the rental company. The rental company will bill State Farm directly. If you prefer to rent elsewhere, you can do so and submit the receipt later.
Keep all receipts, the rental agreement, and any correspondence with State Farm. If there is a dispute about the daily rate or the number of days covered, you will need these documents to support your claim for reimbursement.
Frequently Asked Questions
What if I don't have rental reimbursement coverage and need a rental car?
You will have to pay for the rental yourself. State Farm will not reimburse you if you did not purchase rental reimbursement coverage before the loss. You can add it to your policy after a loss, but it will not cover that loss — coverage typically begins the day you add it.
Does rental reimbursement cover a rental if someone else hits me?
Yes, if you have rental reimbursement coverage, it applies regardless of who caused the accident. You can use it even if the other driver's insurance will eventually pay for repairs. State Farm may recover the rental cost from the other driver's insurance later through subrogation.
Can I rent a luxury car and have State Farm pay for it?
State Farm will pay up to your daily limit. If a luxury rental costs $100 per day and your limit is $60 per day, State Farm pays $60 and you pay $40. Preferred vendors typically offer mid-size or standard cars, so a luxury rental would likely be a non-preferred option where you pay the difference.
What happens if the repair shop takes 45 days but my coverage is capped at 30 days?
State Farm covers 30 days of rental (or whatever your policy maximum is). Days 31 through 45 are your responsibility. You can ask State Farm to extend coverage if the delay is due to parts shortages or other circumstances beyond the shop's control, but approval is not may provide.
Do I need to use a State Farm preferred vendor?
No, you can rent from any company. Using a preferred vendor is convenient because State Farm bills them directly and you avoid the reimbursement process. Renting elsewhere means you pay upfront and wait for State Farm to reimburse you.