Your coverage may differ depending on the details of your auto policy and agent; however, full coverage policies from State Farm typically provide rental reimbursement or transportation expense coverage (sometimes called rental car expense waiver).
This typically costs around $10 per month and helps cover rental car costs during repairs to your insured vehicle covered by collision or comprehensive insurance policies.
Coverage for Damage to the Rental Car
As people travel for business or pleasure, many are worried about whether their insurance will provide enough coverage for potential financial burdens associated with renting vehicles if their own car is damaged or stolen. State Farm’s auto policies often include some level of rental car protection depending on your policy type and other considerations.
When renting a vehicle, many car rental agencies may provide the option to purchase additional collision and loss damage waiver (LDW) coverage at an extra fee. These coverages typically relieve you from financial responsibility for repairs should the rental car become damaged during its rental term and also prevent “loss of use” fees from car companies that might otherwise apply while repairs take place. These additional policies usually do not prove necessary if you already possess comprehensive auto policies as these typically cover rental cars up to their coverage limit for property damage.
State Farm insurance policies typically include personal injury protection (PIP) and medical payments coverage to assist drivers when involved in accidents while renting cars, usually only applying if you’re driving them yourself. It is wise to research any applicable credit card coverage terms as well as your State Farm policy before making decisions regarding additional protection for rentals.
State Farm insurance policies also feature rental reimbursement coverage, which provides payment for renting an alternative vehicle if your own is damaged in a covered claim and no longer can be driven. This coverage can be especially helpful if your car serves as your mode of transport to work or other everyday needs; without it you would likely be left without transportation if it were out of service.
To file a claim with State Farm insurance agency, follow the same process you would when filing any incident report involving your own car. Your agent can provide further details if needed regarding this specific process.
State Farm provides homeowners, renters and auto insurance in East-Elmhurst and throughout Queens. Get in touch with us now to receive a quote, as well as talk about other forms of coverage such as boat and motorcycle policies that could benefit you. Our goal is to protect what matters most: places, things and people. Let’s work together – let us be there when the time is right! We look forward to helping!
Coverage for Damage to Your Own Car
If your own car is damaged in a covered accident, its coverage should extend up to the limits of its own policy. Therefore, rental car insurance usually isn’t required – potentially saving money with increasing collision or comprehensive limits or adding personal accident and personal effects coverage.
Your State Farm agent can assist in determining how much additional coverage might be appropriate for your situation. For instance, if you own or lease a car loan/lease agreement, make sure enough collision and comprehensive coverage exists to cover its actual cash value (ACV). Likewise, renting can necessitates adding an accident forgiveness waiver policy in order to cover damages to rental cars.
Substantial liability protection offers extra coverage for other people and property, making this an essential addition if renting an expensive or long-term car rental. Finally, personal effects coverage helps safeguard belongings against theft in rental cars.
State Farm car insurance with rental coverage could be well worth the additional expense, particularly if you’re worried about damaging an expensive rental. But be mindful of whether it meets your specific needs; for instance, rental car reimbursement or travel expense coverage might cost as little as $25 a day (depending on your policy) while providing necessary peace of mind.
Alternatively, if your own car is damaged by something not covered by comprehensive or collision coverage, rental car reimbursement and travel expense coverage might be worthwhile to add to your policy. This coverage helps cover rental cars while your own is repaired from things such as severe weather events, animal strikes and vandalism.
Contact your local State Farm agent now to gain more knowledge about renting a car and the ways we can assist in its acquisition, as well as to request an insurance quote that best meets your individual needs. In addition to car coverage, our agents in Brooklyn can also assist in finding great home, condo and renters policies to protect the people and places most important to you. *Annual average per household savings based on 2022 national survey data of new policyholders without discounts applied (*Saves may differ by state).
Coverage for Damage to Other People’s Property
State Farm car insurance policies typically provide the following rental car coverage options:
Liability Insurance
When driving a rental car, your State Farm liability coverage typically protects against damage you cause to other people and their properties in an accident you cause. This covers any medical costs for those involved as well as repairs/replacement costs to their vehicles/property.
Collision and Comprehensive Insurance
If you have State Farm’s collision and comprehensive coverage, those protections will likely cover accidents that happen while renting a vehicle. Furthermore, should one of your own vehicles require repairs after an accident covered by these policies, the State Farm policy often pays to rent you another comparable one while yours is repaired – this process is known as rental reimbursement and WalletHub provides an in-depth guide that helps explain it further.
Rental Car Reimbursement and Travel Expense Coverage If your State Farm car insurance does not already include rental reimbursement coverage, adding it for approximately $10 per month could provide essential transportation while your own car is being repaired as part of a covered claim. With this coverage option you can customize daily and total claims limits, providing peace of mind during a repair.
Travel expense coverage is another optional coverage you should add to your policy, helping pay for rental car or commercial transportation expenses while your own vehicle is being repaired after being involved in an accident covered by collision or comprehensive coverage. When purchasing this coverage, you can customize both daily and total claims limits; according to WalletHub this “is an invaluable feature of having.”
State Farm also offers loss-of-use coverage as a waiver you can opt out of; this waiver waives fees that rental car companies might levy in the event that your rental car becomes damaged or stolen; although, you’ll still need to pay your auto insurance deductible, but this coverage can help offset some costs you might otherwise face.
Medical payments and uninsured/underinsured motorist coverage could also come into play during your rental, and is typically included with car, renters or homeowners policies – it’s best to consult your agent prior to renting a car though! Also be sure to bring health insurance that covers you while traveling internationally – remembering to pack passport is also key! If any questions arise while renting, feel free to reach out directly – State Farm agents are always more than willing to assist! You can contact them either via calling them directly or the mobile app!