Yes, in two different ways. If your car is in the shop after a covered comprehensive or collision claim, State Farm’s optional Car Rental and Travel Expenses coverage helps pay for a rental car, up to daily and per-claim limits. If you rent a car on a trip, State Farm says the coverage on your own policy may extend to the rental.
The two situations work very differently, so it’s worth knowing which one you’re in before you head to the rental counter.
Key Takeaways
- Car Rental and Travel Expenses is optional. It pays for a rental car, or rideshares and bus fares, while your car is being repaired after a covered comprehensive or collision loss.
- It only applies when the damage is covered by your comprehensive or collision coverage, so a mechanical breakdown doesn’t qualify.
- If a covered loss more than 50 miles from home leaves your car undrivable, the coverage also pays up to $500 for meals, lodging and transportation.
- When you rent a car, State Farm says your liability coverage may extend to it, and your comprehensive and collision could cover damage to it. You may still owe your deductible and some rental company charges.
| Your car is in the shop | You rent a car on a trip | |
|---|---|---|
| What pays | Car Rental and Travel Expenses coverage, if you added it | The coverages on your own State Farm policy, if they extend to the rental |
| What it covers | A rental car or other transportation, up to your daily and per-claim limits | Liability, plus damage to the rental if you carry comprehensive and collision |
| What you might still pay | Costs above your limits, plus gas and security deposits | Your deductible and charges like loss of use or diminished value |
When Your Car Is Being Repaired
State Farm’s Car Rental and Travel Expenses coverage pays up to the limits you choose when you, or a relative who lives with you, rent a car because your car is damaged in a way that’s covered by your comprehensive or collision coverage. It can also help pay for other transportation, such as rideshares or bus fares.
The coverage has a daily limit and a per-claim limit. State Farm’s own example uses $30 a day and $900 per loss, which would pay up to $30 a day until $900 is used up. That’s an illustration, not a standard limit, so check the amounts on your declarations page.
Timing depends on whether you can drive the car. State Farm says the coverage starts right away if the car isn’t drivable. If it’s safe to drive, the rental begins the day repairs start and ends the day they’re done, or when you reach your limit.
If Your Car Is Totaled
State Farm says that if it determines your car is a total loss, “you may have additional days of car rental and travel expenses coverage from the date State Farm reviews your vehicle valuation with you.” The exact cutoff is in your policy. State Farm’s California policy booklet, for example, ends rental coverage five days after State Farm offers to pay for a total loss.
What the Coverage Doesn’t Pay For
- Gas for the rental car
- Security deposits the rental company requires
- Rental costs above your daily or per-claim limit
- A rental after a mechanical breakdown, routine maintenance or any loss that isn’t covered by your comprehensive or collision coverage
Renting Through State Farm’s Partners
State Farm’s rental services page says Enterprise and Hertz provide rental vehicles to State Farm customers, “with rates that may be lower than those available in the retail market.” You can reserve a car through State Farm’s online claim tools if you’re eligible, or through your claim handler.
Travel Expenses When You Break Down Far From Home
The same coverage includes a travel benefit. If a covered comprehensive or collision loss happens more than 50 miles from home and your car can’t be driven, State Farm pays for meals, lodging and transportation home or to your destination, up to $500 per loss. State Farm says a return trip to pick up your car is also covered.
When You Rent a Car on a Trip
State Farm’s rental car insurance guide explains how your own policy can apply when you rent:
- Liability. “Your policy’s coverage may extend to rental car usage for personal trips within the covered territory.”
- Damage to the rental. If your policy includes collision and comprehensive coverage, State Farm says “this could apply to rental cars as well.”
- Your costs. You may owe your deductible if you file a claim, and State Farm notes that a claim “could impact your future rates.”
- Rental company charges. Your policy might not cover extra charges such as “loss of use” or “diminished value.”
Car Rental and Travel Expenses coverage can also help here. State Farm says it pays up to $500 for the rental car owner’s deductible after a covered loss. Check your policy for how that benefit works in your state.
A few situations can leave you without coverage. State Farm says coverage extensions from your policy or a credit card “may not apply if you’re renting a car for business.” And U.S. auto insurance often doesn’t cover you in other countries. State Farm notes that Canada can often be an exception, but you should confirm with your insurer before you travel.
Should You Buy the Rental Company’s Damage Waiver?
It depends on what your own policy covers. The NAIC says that if you have comprehensive and collision on your own car, “you will likely not need this additional protection.” The waiver can still make sense in a few cases:
- You don’t carry comprehensive and collision, so your policy won’t pay for damage to the rental.
- You’re renting outside the U.S., or you’re renting for business.
- You’d rather not risk a claim on your own policy or pay your deductible.
Many credit cards include some rental car protection, but the NAIC says it’s usually secondary to your own insurance. Call your card company to find out what it covers.
What If Another Driver Caused the Accident?
The at-fault driver’s insurer should pay for your rental. The NAIC says that “the other driver’s company should pay your rental car cost for a reasonable length of repair time.” That can take a while if fault is disputed. If you have Car Rental and Travel Expenses coverage, you can use it in the meantime.
For a broader look at how rental coverage works at other insurers, see RateFrog’s rental reimbursement coverage guide. If you’re comparing companies, our article on how Progressive covers rental cars explains Progressive’s approach.
Frequently Asked Questions
Does State Farm Pay for a Rental If My Car Breaks Down?
Not under Car Rental and Travel Expenses coverage. It applies only when your car is damaged in a loss covered by comprehensive or collision, and a mechanical breakdown isn’t one of those.
Does State Farm Pay for a Rental Car Right Away?
If your car can’t be driven after a covered loss, State Farm says the coverage starts immediately. If it’s drivable, the rental starts the day repairs begin.
Does State Farm Cover Rental Cars in Other Countries?
Often not. State Farm says U.S.-based auto insurance may not cover you in foreign countries, though Canada can often be an exception. Check with State Farm before you travel.
Can I Get Car Rental Coverage Without Comprehensive and Collision?
The coverage only pays after a loss covered by comprehensive or collision, so without them it wouldn’t apply. Ask your agent which coverages you need to add it.