Each state mandates minimum levels of liability insurance for every vehicle on the road. When you own the car you drive, it’s easy to ensure you maintain coverage when you’re on the road. When you get behind the wheel of a rental, things become less easily defined. Many State Farm Insurance policies extend to provide you coverage when you rent a car -- and policyholders also may purchase rental reimbursement policies to cover rental costs when their car is in the shop -- although those policies may not cover all your costs.
Personal Automotive Policies
Most personal State Farm Auto Insurance policies transfer directly to a rental car that you rent and drive, with liability, collision and comprehensive coverage levels and deductibles matched on the rental you drive. State insurance laws vary, as do individual policies, so policyholders should consult their policy manual or call an insurance representative to determine if their automotive policy applies when renting a vehicle. Some policies don’t extend to high-end rentals, and policyholders who carry only state-mandated minimum coverage may not have collision or comprehensive coverage on their rental.
Credit Card Insurance Supplements
Many credit card companies offer limited automotive insurance coverage to cardholders as an additional benefit of membership. If your credit card offers additional levels of automotive insurance, you may be able to use it to supplement the coverage your State Farm policy extends to the rental when you use the card to rent the car. For example, your credit card may cover the deductible from your primary policy. Consult your card’s documentation to determine if it offers automotive insurance and the extent and limitations of that insurance.
Rental Reinbursement Policies
In many cases, when you’re in an accident, your vehicle must remain in the shop for an extended period before repairs make it roadworthy again. When policyholders hold an existing rental reimbursement policy, State Farm covers the cost of a rental for the period in which your car is being repaired. Coverage levels and limitations vary by policy and state law. Rental reimbursement policies aren’t standard-issue policies, and must be purchased in addition to standard liability and personal-industry coverage.
Even when your State Farm policy extends to rental vehicles and your credit card’s built-in automotive insurance provides for your primary policy’s deductible, you may face additional charges from the rental company. Many car rental companies charge renters loss-of-use charges to cover lost rental income when their vehicle is out of commission and getting repaired following the accident. Insurance companies may also assess administrative fees on top of charges for lost opportunity costs. Most policies won’t cover these additional charges, and you’ll need to pay them out of pocket.