state farm rental car coverage

State Farm Rental Car Coverage

Renting a car can be a convenient way to get around when you need temporary transportation. However, driving a rental car also comes with risks, such as getting into an accident or having the rental car stolen. That’s why having proper insurance coverage is crucial when renting a vehicle.

State Farm is one of the largest auto insurance providers in the United States. The company offers different types of coverage options for rental cars that can give drivers peace of mind. This article will provide an in-depth look at State Farm’s rental car insurance products so you can understand your options.

What Is Rental Car Insurance?

Rental car insurance provides protection against financial losses if something happens to a rental car you are driving. Rental companies will often try to sell you their own collision damage waiver (CDW) or loss damage waiver (LDW) coverage when you pick up the vehicle.

However, the rental company’s insurance may have limitations and exclusions. It also likely won’t cover your liability if you cause injury to others or damage their property. That’s why experts recommend getting rental car coverage through your regular auto insurance provider like State Farm.

State Farm’s rental car insurance options can give you more comprehensive protection compared to what rental car companies offer. State Farm covers damage to the rental vehicle along with liability, unlike the rental company’s minimal policies.

What Is Rental Car Insurance?
What Is Rental Car Insurance?

When Does My Personal Auto Insurance Apply?

If you have personal auto insurance through State Farm or another company, some coverages may extend to a rental car automatically depending on your policy details.

Here are some instances where your regular car insurance would provide protection on a rental vehicle:

Liability insurance

Your policy’s liability coverage would apply if you cause an accident with the rental car that leads to bodily injury or property damage. Liability insurance covers the other party’s expenses up to the limits listed on your policy.

Uninsured/underinsured motorist coverage – If you get in an accident caused by a driver who doesn’t have insurance or doesn’t have enough coverage, this protection would kick in.

Medical payments coverage

If your policy has medical payments coverage, it would cover medical expenses for you and your passengers after a rental car accident, regardless of who was at fault.

Comprehensive/collision coverage

Standard auto policies from State Farm and other insurers often exclude rental cars from comprehensive and collision. That means you wouldn’t automatically have coverage for damage to the rental itself without adding rental car coverage.

While your regular car insurance policy may provide some protection on a rental car, there are still likely to be gaps depending on your specific coverage. Adding rental car insurance endorsement from State Farm fills in those gaps to give you complete protection.

When Does My Personal Auto Insurance Apply?
When Does My Personal Auto Insurance Apply?

State Farm Car Rental Insurance Options

State Farm offers a few different ways to get rental car insurance coverage. The available options include:

Rental Car Damage Coverage Endorsement

This endorsement adds comprehensive and collision coverage for rental cars to your State Farm auto policy.

Adding this coverage means State Farm will pay for damage to a rental vehicle you are driving, after you pay the deductible. Damage could include anything from fender benders to theft.

Without the rental car endorsement, your personal auto policy would not cover repairs or replacement for the rental itself. This coverage gives you peace of mind knowing the entire rental car is protected.

The rental car endorsement includes a deductible, which is usually $500 but can vary based on your regular auto policy deductible amount. State Farm will pay the auto repair shop or rental car company for damages beyond the deductible.

One advantage of adding the rental car endorsement to your State Farm policy is that it’s often cheaper compared to purchasing the rental company’s coverage. Plus, State Farm’s coverage is more comprehensive.

Rental Car Damage Coverage Endorsement
Rental Car Damage Coverage Endorsement

Car Rental Loss Damage Coverage

This is an optional add-on that reduces the deductible for rental car damage. If you add the rental car loss damage coverage to your State Farm policy, your deductible is only $100 if the rental vehicle is damaged or stolen.

This can save you money if the rental car does get damaged while in your possession. Instead of a $500 or $1,000 deductible, you would only pay $100 out of pocket before State Farm covers the remaining repair or replacement costs.

The car rental loss damage coverage addon is inexpensive but can give you greater protection. This coverage applies to rentals up to 31 consecutive days.

Car Rental Loss Damage Coverage
Car Rental Loss Damage Coverage

Indemnity Car Rental Coverage

State Farm’s indemnity car rental coverage is designed to reimburse you for expenses related to an accident in a rental car. This coverage is added to your standard State Farm auto policy.

What does indemnity rental coverage include? There are a few key benefits:

  • Pays for loss of use charges from the rental company if the vehicle is damaged and unable to be rented out. This covers the rental company’s lost business while repairs are made.
  • Covers loss of rental income if the vehicle is stolen and not recovered quickly.
  • Pays for reasonable towing costs related to a covered loss.
  • Provides some transportation expenses if you need another rental car while repairs are made.

Indemnity rental protection helps shield you from paying extra charges to the rental company if they lose business due to repairs or replacement from damage. This coverage has limits up to $500-$1000, depending on your State Farm policy details.

The key thing to note is that indemnity coverage only pays for the rental company’s losses, not damage to the vehicle itself. You would need to add State Farm’s rental car damage coverage endorsement for protection against repairs or replacement.

Indemnity Car Rental Coverage
Indemnity Car Rental Coverage

Traveling with Rental Cars Out of State

Many standard auto policies from State Farm and other insurers limit rental car damage coverage to rentals within the United States and Canada. If you plan to rent a car in another country, you likely won’t have coverage.

Before renting a vehicle abroad, talk to your State Farm agent about amending your policy to remove the geographic rental car limitations. This endorsement will extend your existing rental coverage to anywhere you travel so you don’t have to buy supplemental insurance from the rental car provider.

There’s usually a small added fee to remove the geographic restrictions. But this can give you far more flexibility and protection if you want to rent cars while traveling internationally.

Using Rideshare Services with Rental Cars

Ridesharing with a rental car is growing in popularity for some travelers. Apps like Uber and Lyft make it easy to give rides and earn money with a rental vehicle.

However, most rental car agreements prohibit using the car for commercial purposes like ridesharing. Damage that occurs while giving rides may not be covered. Personal auto policies also exclude coverage when using a car for commercial purposes.

Before ridesharing with a rental car, upgrade to a rideshare rental policy to get protection. This is specialty coverage offered by State Farm and other insurers to cover liabilities and damage associated with using a rental for ridesharing services.

Without rideshare coverage, you take on huge risks that your insurance and the rental agreement won’t cover. Don’t put your finances in jeopardy by ridesharing in a rental without the right protection.

Using Rideshare Services With Rental Cars
Using Rideshare Services with Rental Cars

Filing a Rental Car Damage Claim with State Farm

If you get in an accident with a rental car or the vehicle is stolen, you’ll need to file a claim with State Farm to get repairs covered. Here are some tips for starting the claims process:

Report damage to the rental company – Let them know what happened right away and follow their claims process. Get a copy of the accident/damage report they create.

Pay deductible – For damage claims, you will need to pay the deductible you chose for rental car coverage to begin repairs. State Farm pays the rest. Send repair estimates – Once the rental company provides repair estimates, submit them to State Farm so they can issue payment.

  • Call State Farm to start your claim – Provide details like the rental agreement, damage report, and photos if available. Give your policy number and rental car coverage details.
  • Pay fees – If there are loss of use or administrative fees charged by the rental company, submit those invoices for reimbursement through your indemnity rental coverage (if applicable).
  • Provide updates – Keep State Farm notified as the claim progresses until the repairs are complete and all expenses have been paid out.

Promptly reporting damages and submitting required paperwork helps facilitate claim payments so the rental company can get their vehicle back in working order. This also enables you to fulfill your obligations with the rental agreement using your State Farm insurance protections.

Filing A Rental Car Damage Claim With State Farm
Filing a Rental Car Damage Claim with State Farm

Key Takeaways

Having appropriate insurance when renting a car is a smart way to avoid large out-of-pocket costs if the unthinkable happens. Here are some key tips to remember about State Farm rental car coverage:

Review your personal auto policy as existing liability and medical payments coverage may transfer, but comprehensive and collision often exclude rentals. Consider adding State Farm’s rental car damage endorsement, which provides

affordable protection for the rental itself if it’s damaged or stolen. You can also reduce your deductible with rental car loss damage coverage to lower your out-of-pocket costs if a claim occurs. It may also be worthwhile to get indemnity rental coverage,

which covers fees the rental company charges if they lose business from needed repairs. Be sure to adjust limits for international rentals by removing any geographic restrictions to maintain coverage when renting a car abroad.

For the coverage limits for State Farm’s indemnity car rental

$35 per day for up to $1050 maximum for the cost of a rental car due to a covered loss. You would need to use the rental car as a replacement for your own vehicle that is being repaired. $1,000 maximum coverage for loss of use, which covers things like transportation costs if a rental isn’t used.

Standard liability coverage applies to the rental but only while driving it, not coverage for damage to the rental. Collision and comprehensive coverage would be required from the rental company to cover damage to the rental car itself.

To upgrade to a rideshare rental policy with State Farm

Contact your State Farm agent and let them know you want to add rideshare coverage to your existing auto policy. Your insurance policy and driving history will be reviewed to determine eligibility and pricing for the upgrade.

You may need to submit documents verifying you have a valid commercial rideshare permit/license from the city/state where you operate.

Once approved, you’ll pay any additional premium required and the rideshare endorsement will be added to your policy, extending your existing liability limits to covered rideshare trips.

To Upgrade To A Rideshare Rental Policy With State Farm
To upgrade to a rideshare rental policy with State Farm

State Farm Rental Car Damage Claim Processing Time

5-7 business days for the claims adjuster to review the details of the loss and determine coverage. Once coverage is confirmed, it takes 1-2 days on average for any payment on the claim to be issued to the rental company or your yourself, depending on the circumstances.

If repairs are required to your vehicle and it’s a comprehensive total loss claim, the entire claims process from filing to settlement could take 2-4 weeks.

FAQs

Do you need extra insurance when renting a car in USA?

It’s a good idea to get extra rental car insurance when renting a car in the USA. Your own auto insurance may not fully cover a rental car, especially for things like collision damage. Rental companies offer additional insurance options like collision damage waiver to cover damage to the rental car. While this adds to the rental cost, it can protect you from large out-of-pocket expenses if something happens to the rental car.

Does my auto insurance cover rental cars in Canada?

Your personal Canadian auto insurance may offer coverage for rental cars, but the level of coverage can vary. Check your policy to see if rental cars are covered for collision, theft, vandalism, etc. Many policies offer some coverage, but there may be dollar limits or deductibles. Review your coverage to see if it’s adequate or if you should consider the rental company’s insurance options for more protection. Ask your insurer about your rental coverage.

Which credit cards offer rental car insurance?

Many credit cards provide some level of rental car insurance when you use the card to pay for the rental. Cards like Visa, Mastercard, and American Express often include collision damage waiver, which covers damage to the rental car. Levels of coverage vary, so check your card’s specific policy. Some premium credit cards like Visa Infinite or World Elite Mastercard offer robust rental coverage. But lower tier cards provide more basic protection. Always confirm coverage with your credit card company.

What does Allianz rental car insurance cover?

Allianz rental car insurance provides comprehensive coverage when you rent a vehicle. It includes collision damage waiver, loss damage waiver, and liability insurance at required minimum levels set by law. Allianz policies cover theft, vandalism, fire damage, and accidents. They also cover medical costs for injuries to you or passengers. Allianz offers premium protection with low deductibles. But exclusions apply, so review the full policy details before relying on Allianz rental coverage.

Conclusion

In conclusion, State Farm provides valuable rental car coverage for its auto insurance policyholders. The coverage helps insureds retain mobility after an accident by reimbursing costs associated with renting a replacement vehicle.

State Farm’s rental car reimbursement is fairly competitive compared to other major insurers, providing up to $40 per day for up to 30 days. However, customers should be aware that the coverage only applies if they are not at fault in an accident.

If found liable, a policyholder would have to pay out of pocket for a rental. Customers should also note any deductibles or coverage limits that may reduce the amount reimbursed. While not comprehensive, State Farm rental car coverage

serves an important role in helping drivers get back on the road after an accident when they are not at fault. Overall, the benefit provides good value as part of a standard auto insurance policy from State Farm.

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