Like other car insurance providers in the United States, State Farm auto policies often extend to rental cars. Read on to find out how your policy applies to rental cars, and whether an alternative option like RentalCover may be better for you.
What is rental car insurance?
Rental car insurance is a range of policies that protect you when driving a rental vehicle. If you have personal auto insurance with State Farm, this cover will generally carry over when you hire a car.
Alternatively, you can be covered by your hire car company, or third-party providers like RentalCover. Key factors in rental car insurance include:
- Collision Damage Waivers: A Collision Damage Waiver (CDW) works by transferring legal liability for damage to a rental vehicle from the renter to the rental company. You can get equivalent coverage through personal auto insurers like State Farm or third-party providers like RentalCover. Your rental car company may refuse to rent a vehicle to you if you don’t have a CDW or similar coverage.
- Liability Insurance: Almost every state requires you to have third-party liability insurance to cover costs you may be held liable for if you cause injuries to other people or damage to their property. This cover may be built into the cost of your rental vehicle. If not, you can purchase a separate Supplemental Liability Insurance policy, or rely on your personal auto policy.
Does State Farm car insurance offer rental car insurance?
Yes, your personal State Farm car insurance policy can apply to personal-use rental vehicles. Generally, your personal policy will carry over to your rental car, including your deductible and coverage limits.
Here’s how your State Farm policy could work for your rental vehicle:
- Liability coverage: If you only have State Farm liability coverage, you’ll be covered for costs relating to injuries to other people and damage to their property, up to your policy limit.
- Collision coverage: State Farm collision coverage applies if your rental vehicle overturns or collides with another vehicle or object.
- Comprehensive coverage: Comprehensive coverage applies if your vehicle is damaged by something other than a collision, including theft, fire or vandalism.
Is rental car insurance from State Farm enough on its own?
State Farm offers a range of distinct car insurance policies. Here’s how 3 of its major policies stack up against our comprehensive rental car insurance policy.
| Liability Coverage | Collision Coverage (bundled with Liability Coverage) | Comprehensive Coverage (bundled with Liability Coverage) | RentalCover | |
|---|---|---|---|---|
| Deductible-free | ✓ | × Pay deductible | × Pay deductible | ✓ $0 deductible |
| Liability | ✓ | ✓ | ✓ | ✓ Available under Supplemental Liability Insurance |
| Coverage limit | Policy limit | Policy limit | Policy limit | $50,000 for CDW cover, $1 million for SLI |
| Collisions | × | ✓ | × | ✓ |
| Theft & vandalism | × | × | ✓ | ✓ |
| Weather events | × | × | ✓ | ✓ |
| 220+ countries | × | × | × | ✓ |
| Loss-of-use and administrative fees | × | × | × | ✓ |
| No impact on personal auto insurance premiums | × | × | × | ✓ |
If you have all 3 forms of coverage from State Farm bundled into a “full coverage” policy, you have a fairly solid level of protection in your rental vehicle. However, your policy limits could be significantly lower than the value of your rental car.
RentalCover covers up to $50,000 in damages with our CDW policy. Our rental coverage is also superior to relying on your personal car insurance in the following ways:
- There’s nothing to pay in the event of a claim.
- We offer coverage for a wide range of incidents auto insurers and rental companies exclude.
- We offer coverage in 220+ countries.
- You don’t need to make a claim on your personal auto insurance and risk higher premiums.
How to verify your State Farm policy details
Before committing to any rental car insurance purchase, it’s important to fully understand the current coverage you have access to. Here’s how to verify your coverage as a State Farm customer:
- Log in to statefarm.com or open the State Farm mobile app to view your Declarations Page and current coverage.
- Pay special attention to your specified policy exclusions.
- If you need further clarification, you can reach out to your local State Farm agent, use live chat online or call customer service on 1-800-782-8332.
Get comprehensive protection with RentalCover
Using your personal auto insurance for rental vehicle protection has drawbacks. We offer simple coverage that allows you to say ‘no’ to upsells at the rental desk and avoid relying on your personal car insurance.
With our cover, there’s nothing for you to pay in the event of a claim. Plus, you can make claims for rental vehicle incidents without worrying about long-term impacts on your premiums.
Get an instant online RentalCover quote today and enjoy more peace of mind on your next journey in a rental vehicle.
Frequently asked questions
Does my credit card offer rental car insurance?
Many credit cards do cover rental car insurance. However, relying on your credit card could mean paying thousands of dollars out of your own pocket. For US residents, your credit card likely provides secondary car rental insurance that only kicks in after you make a claim through your personal auto insurance. This may lead to a rate increase.
Credit card coverage often has an additional list of exclusions, including:
- Specific damages.
- Damage caused by additional drivers.
- Lost keys.
- Roadside repair costs.
- Long-term rental.
- Any fees your rental company may add to your repair bill.
With RentalCover, you have more comprehensive protection for less cost.
What is State Farm Rental Car Reimbursement?
State Farm offers rental reimbursement coverage as an optional add-on to your personal auto insurance policy. It applies if you cannot use your car because of an event covered under your policy. It can cover rental cars, or other forms of transport like bus fares and ridesharing apps.
It is separate from the extension of your personal car insurance to a rental vehicle.
What is Personal Effects Insurance (PEI)?
Personal Effects Insurance (PEI), also known as Personal Effects Coverage, offers cover for personal belongings like clothes, electronics and jewellery if they are damaged or stolen in your rental vehicle. You may be able to purchase this insurance through your car rental company, offering some additional peace of mind on your travels.
Personal Effects Insurance is not included in RentalCover policies.