If you are a frequent traveler then you will understand what hassle a traveler has to go through while traveling. A traveler has to go through lots of processes and how much insurance coverage they have to pay while renting a car can add extra stress. So, if you have State Farm auto insurance then you will be relieved to know that you are covered for rental cars to the limits of your personal vehicle’s auto policy!
What is Rental Car Insurance Coverage?
A rental car insurance coverage is a type of insurance policy that offers protection for people when they drive a rental car. There are many ways you can get rental car insurance. You can get rental coverage through your personal insurance policy, auto insurance policy, credit card, or from the rental car company itself. Depending on the policy, a rental coverage can cover damage to the vehicle, damage or injuries to other people, or your own injuries, as well as theft, and loss of personal items.
Key Facts of Rental Car Insurance
There are various types of rental car insurance available; among them, some common types are liability, collision damage waiver, personal accident, and personal effects.
In the USA, on average rental car insurance can cost you $61 per day. But the actual amount will depend on how much coverage you have purchased and where you are renting the card.
If you have personal car insurance, health insurance, or credit card benefits then these policies will provide you coverage for rental cars!
There are alternatives to rental car insurance like non-owner car insurance, temporary car insurance, travel insurance, etc.
Reasons You Will Need Rental Car Insurance
There are quite a few key reasons you might need rental coverage. Some key reasons are –
- When you are driving a vehicle there might be an accident, so if you don’t want to pay the deductible in the event of an accident then rental coverage can come in very handy. Therefore, having rental car insurance will give you peace of mind while driving a rental car.
- Having rental car insurance means you don’t have to make a claim on your personal insurance. If you have a claim from your personal insurance then you don’t want to have two claims from the same coverage. If you make two claims within a year from the same insurance policy then it can raise your insurance rates significantly.
- If you have auto insurance but it is not comprehensive enough then rental car insurance will provide you more protection with added options. So, if you don’t have liability coverage then you should immediately buy one.
- If you are traveling for business then your personal insurance won’t provide rental coverage therefore you will need separate rental insurance.
- If your coverage limit is low then you should try to increase the coverage of your existing insurance plan or buy a new Rental insurance plan.
- If you have State Farm auto insurance then it will provide rental coverage up to the limit of your own vehicle’s policy. So, if you have a plan to rent a more expensive vehicle then you should opt for rental insurance to protect your money.
- The State farm auto insurance will provide rental coverage within the US and Canada. So, if you are traveling outside these two countries, then you have to purchase rental insurance that is available in the country where you will be traveling.
Types of Rental Car Insurance
The most common types of rental car insurance are –
- Collision Damage Waiver
- Rental Car Liability Insurance
- Personal Accident Insurance
- Personal Effects Coverage
1. Collision Damage Waiver
A Collision Damage Waiver is also known as a loss damage waiver and this type of rental insurance can cover repair costs if there is any damage to your rental car. Usually, this type of coverage doesn’t include some parts of the vehicle like tires or the windshield. Moreover, if the damage is because of environmental reasons then it will not provide any coverage.
2. Rental Car Liability Insurance
This type of insurance provides coverage for damages to other vehicles, property, and people because of the accident that happened while driving your rental car. You should understand that this type of insurance doesn’t cover you, your passengers, or the rental vehicle itself. In almost every state in the USA, liability coverage is included will the basic rental insurance except for California. In California, rental companies are not required by law to include liability insurance.
3. Personal Accident Insurance
This type of insurance coverage covers the medical costs for injuries to anyone by your rental car. Usually, most insurance companies include personal effects coverage within personal accident insurance. You can use this coverage for personal injury protection and medical bills.
4. Personal Effects Coverage
If your personal belongings like clothes, gadgets, etc. are stolen from your rental car then this coverage will protect all your personal belongings. But, you should keep in mind that expensive electrical items are subject to limits and exclusions.
Does State Farm Offer Rental Car Insurance?
Yes, State farm offers rental car insurance and in most cases, the rental insurance coverage is included in the driver’s personal car insurance policy. But it totally depends on whether the driver is driving within the USA or not as well as whether the driver carries liability, comprehensive, or collision coverage. You should keep in mind that each rental car insurance coverage is unique and there may be certain exclusions based on specific situations. Therefore, you should confirm all the details of your rental car insurance with your State farm agent before declining additional coverage at the rental counter.
State Farm also offers rental car reimbursement and it will be very handy for you if you have already taken a claim for your personal car. The rental car reimbursement will still pay for the cost of a rental car despite there being a claim for your personal car which is very convenient. If there is a rental reimbursement on your policy then the insurance company will pay a fixed amount per day for the cost of your rental car! Here, you have the option to select the rental car reimbursement limits when purchasing the add-on. The rental car reimbursement will be effective immediately if the car is not safe to drive or when the repair starts for your car.
FAQs about Does State Farm Car Insurance Cover Rental Car
Do you need insurance to rent a car?
In most cases, you won’t need insurance to rent a car. This is because most rental companies have their own insurance coverage. But you should keep in mind that almost every rental car companies only provide minimum liability coverage. So, if you don’t have any personal insurance coverage then it will be wiser for you to purchase extra rental car insurance.
How can I buy liability insurance for a rental car?
There are many ways you can buy liability insurance for a rental car. You can buy liability insurance from your own auto insurance company. Or, you can also consider buying a non-owner car insurance policy. This type of insurance policy is best for people who don’t have their own car and frequently rent a car. Moreover, you can also buy liability insurance directly from a car Rental Company.
Does my State Farm auto insurance policy cover my rental car?
Yes, the State Farm auto insurance policy covers the insurance holder’s rental car which is very convenient.
What happens if you damage a rental car without insurance?
If you damage a rental car without insurance then you have to bear the full cost of the repair. Though, all rental vehicles come with the minimum liability coverage but it doesn’t cover vehicle damage that is the driver’s fault.