Does Farmers Insurance Cover Rental Cars? Your Guide to Rental Car Insurance

Renting a car for a trip or when your vehicle is in the shop? You’ll want to make sure you have proper insurance coverage. Most people reasonably assume their regular auto policy extends to rental cars. But what does Farmers auto insurance actually cover when you’re behind the wheel of a rental?

This comprehensive guide will explain everything you need to know about rental car insurance coverage through Farmers. Read on to learn about:

How rental cars are covered under your Farmers auto policy
Policy limits and exclusions
When to purchase additional rental car insurance
Cost of adding rental coverage to your Farmers policy
Steps for handling a rental car claim
How to get the best protection for rental cars

Is a Rental Car Covered Under Farmers Auto Insurance?

The good news is that standard Farmers auto insurance policies do provide some level of coverage for rental vehicles. Three key components cover rental cars:

1. Liability Insurance

Your Farmers liability coverage for property damage and bodily injury will extend to a rental vehicle, providing protection if you cause an accident. This meets state minimum liability requirements.

However, your policy’s liability limits likely fall short of the minimum levels required by many rental car companies. Important tip: Verify that your Farmers liability limits satisfy the rental agency’s requirements to avoid paying more out-of-pocket.

2. Uninsured/Underinsured Motorist Coverage

If you’re struck by an uninsured or underinsured driver while operating a rental car, this coverage will pay for injuries to you and your passengers.

3. Collision and Comprehensive Coverage

Farmers will cover a rental car under the collision and comprehensive portions of your policy minus your chosen deductibles. This protects the rental vehicle itself if it’s damaged or stolen.

While your Farmers policy includes limited rental car coverage, important gaps and exclusions apply:

Liability limits may be too low for rental company needs
Excludes loss-of-use costs for the rental company
Typically caps coverage to 30-60 days
Limited overseas coverage

For full protection, additional rental car insurance is advisable.

When to Buy Extra Rental Car Insurance Coverage

In many cases, you should consider supplemental insurance when renting a vehicle:

Waiving the Rental Company’s Insurance

Most rental agencies require you to either purchase their collision damage waiver (CDW) or prove your policy covers their vehicle. Farmers basic coverage may not be enough to decline the CDW.

Insufficient Liability Limits

If your Farmers liability limits don’t meet the rental company’s minimums, you’ll need to buy their liability insurance.

Long-Term Rentals

Farmers restricts rental coverage to 30-60 days usually. For longer rentals, buy extended coverage.

Expensive Vehicles

Luxury and specialty vehicles often have much higher insurance requirements.

International Rentals

Farmers provides limited overseas rental coverage. Supplement with the rental agency’s policy.

Peace of Mind

The rental company’s insurance may be easier for avoiding hassles.

To make the best decision, read the rental agreement carefully and confirm your coverage details with Farmers. Purchasing extra insurance directly through the rental company is often a smart idea.

Adding Rental Car Coverage to Your Farmers Auto Policy

You can expand your rental car protection through a Farmers auto policy by adding:

Rental Reimbursement Coverage

This optional add-on will reimburse you for rental costs if your personal car is in the repair shop after a covered claim. Limits typically range from $30-50 per day for 15-30 days.

Better Car Replacement

This coverage enhances rental reimbursement by providing a new vehicle if yours is totaled instead of paying out the actual cash value.

Rental Vehicle Damage Coverage

This endorsement fills gaps in your basic rental coverage by covering loss-of-use, administrative fees imposed by the rental company, and more.

Higher Liability Limits

Increasing your Farmers bodily injury and property damage liability limits will satisfy most rental car requirements.

Consult your Farmers agent to discuss the right rental car endorsements to purchase for your needs and budget. Expect to pay $10-$20 per month for enhanced rental coverage through Farmers.

How to File a Farmers Insurance Claim for a Rental Car

If you need to file a claim on a Farmers-insured rental vehicle:

Take photos of any damage before returning the rental car.
Note the exact circumstances of the loss and gather any police or accident reports.
Call your Farmers agent or 1-800-435-7764 to start the claims process.
Provide copies of the rental agreement and your receipts for charges imposed by the rental company.
Submit any additional documentation Farmers requests.
Pay your deductible for damage claims. Farmers will reimburse validated fees charged by the rental agency.
Respond promptly to the adjuster handling your rental car claim to speed resolution.

Whenever possible, avoid paying for damages out-of-pocket on the spot as this makes it harder for Farmers to recover expenses later on your behalf.

How to Get the Best Rental Car Insurance Coverage

Follow these tips to make sure you have air-tight rental car insurance coverage:

Review liability limits, exclusions, and duration of coverage under your Farmers policy.
Verify the rental agency’s minimum insurance requirements.
Consider purchasing endorsements from Farmers to fill gaps.
Accept the rental company’s CDW unless Farmers provides equivalent coverage.
For international rentals, buy full protection through the rental provider.
Use a credit card with rental car insurance perks for additional peace of mind.

With the right insurance strategy, you can rent a car with confidence knowing you have comprehensive protection from Farmers. Drive safely and enjoy your rental vehicle without worrying about coverage.

The Bottom Line on Farmers Insurance and Rental Cars

While your Farmers auto policy includes some baseline rental car coverage, important limitations exist. For complete protection when renting a vehicle, consider buying supplemental insurance directly through the rental company. Or expand your Farmers policy with endorsements like rental reimbursement and rental vehicle damage coverage.

Farmers makes it easy to file a claim if you do run into problems with a rental car. With adequate insurance limits and savvy rental car planning, you can travel with the assurance of full coverage. Consult your Farmers agent to ensure your auto policy has you covered whenever you hit the road in a rental vehicle.

How Does Rental Car Reimbursement Coverage Work?

FAQ

What is the rental car insurance?

The most common types of rental car insurance include: Loss-and-damage waiver (LDW): Sometimes called the collision damage waiver (CDW), this is a waiver, rather than a true policy. It essentially says that the rental company will not come after you in the event that the rental car is damaged or stolen.

What is the new car pledge with Farmers insurance?

Are there special coverage options for new cars? Farmers offers the New Car Pledge ®, a guarantee for newly purchased vehicles. We’ll replace it with a new one of the same make and model, at full market value without depreciation, as long as the car has less than 24,000 miles and is a maximum of two model years old.

What is the grace period for Farmers insurance?

Yes, Farmers has a grace period of 30 days for payments. During the grace period, policyholders can pay their past-due premium in order to avoid a lapse in coverage. If the grace period ends without the necessary payment being made, Farmers will cancel the policy.

How long does Farmers give you to add a new car?

If you’re already a Farmers customer and are about to buy a new car, there’s no need to call right from the dealer. You’re covered when you drive off the lot. You have up to 30 days to notify us so that we can add the vehicle to your policy.