For many travelers, there’s a moment of dread when they get to the rental car counter and wonder how much insurance coverage they need. Does State Farm car insurance cover rental cars? If you have State Farm insurance for your primary vehicle, it’s reassuring to know that you’re covered for rental cars with one caveat: You’re only covered to the limits of your personal vehicle’s auto policy.
What to Know About State Farm and Rental Cars
The State Farm website states that, for most people renting a car for personal use, buying insurance from the rental car company “is probably a waste of money.” You’re covered to the limits of your own policy. That means if you drive a brand new full-size car and rent a compact car, you’re good to go. But if you drive an older, modest vehicle and rent a new model with many bells and whistles, it gets tricky.
The rental car company will offer a Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW), that may cost more than $20 per day in most states. This will waive repair costs if the car is damaged or stolen, and would reimburse costs for towing the vehicle, among other things. If you are unsure what your State Farm policy covers, always double check before picking up your rental car.
In the case of an accident in a rental car, you would pick up the deductible on your auto insurance policy and then State Farm would cover the remainder, up to your policy’s limit. If your State Farm policy has a very high deductible, you might consider opting for more coverage from the rental car company.
Anything over your State Farm policy limit might be protected by your credit card but, again, it’s best to check on your card’s coverage specifically for rental cars. Always know before you go.
7 Reasons to Buy Car Rental Insurance
Even when you have a level of coverage, there are times when it’s better to purchase additional rental car insurance anyway. These include:
You don’t want to pay the deductible in the event of an accident
If the deductible on your auto insurance is high, it would apply to your rental car, too. It may give you peace of mind to just fork up for car rental insurance and know you won’t pay end up on the hook for more than that amount.
You don’t want to make a claim on your personal insurance
Maybe you recently had a claim and don’t want your premium to explode. Two claims in one year can raise your insurance rates significantly, so you may want to err on the side of caution and buy insurance.
Your own coverage is spotty
If your State Farm auto policy isn’t comprehensive, you might want to buy the CDW. You might want to pick up personal accident insurance if you have skimpy health insurance. If you don’t have liability coverage, you may want to buy that.
You’re traveling for business
In that case, your personal auto insurance likely won’t cover a rental car.
Your coverage limits are low
If you’ll be driving in an unfamiliar area or bad weather and nervous about possible damage to the vehicle, you might consider either raising your coverage levels or picking up additional coverage from the rental car company or a third-party provider.
You’re renting an expensive vehicle
Remember, your State Farm auto insurance will only cover up to the limit of your own vehicle’s policy. You may want to beef up coverage for your fun rental weekend in a Corvette. Always be sure to check your coverage limits.
You’re renting in another country
With State Farm, you’re covered for rental cars in the US and Canada. If you’re traveling outside these two countries, you’ll need to purchase supplemental insurance. (Mexican rentals require extra insurance anyway.)
Frequently Asked Questions
Can I use my credit card to rent a car?
Yes. But be aware that there could be additional fees if you use your card abroad. Before making a reservation, compare rates. Some websites let you make reservations without having to pay until your arrival, which is a great way to save money.
Which place is the easiest to rent a car?
Airports, rental agencies, and hotels are the most popular places to rent cars.
You can find airport locations near you by searching online for sites like Priceline and Expedia.
You may also want to consider local rental companies if they have locations close to where you live. These are often more affordable and simpler than booking directly with an airline.
Consider public transportation if you are renting a car less than two weeks. A city-wide bus pass allows unlimited use within a designated area.
A convertible may be available for rent if you’re traveling with children. These vehicles offer more protection to their children than others.
Do I need separate auto insurance to drive around Europe?
You may want to consider adding coverage for other drivers if you drive abroad.
This is because different rules may apply to who is liable if an accident happens between cars from different countries.
Make sure to read all terms and conditions before signing up for the extra coverage.
Also, verify if your existing policy covers international travel. This is what’s commonly known as an “extended Warranty” and you may find it more cost-effective to purchase it individually.
Statistics
- Save up to 30% on your rental car in Europe when you book with us today. (autoeurope.com)
- Automatics are more expensive (usually about 50 percent more) and may only be available if you upgrade to a bigger, pricier car. (ricksteves.com)
- American Airlines, for example, offers AAdvantage members 35% off Budget and Avis — but you need to rent from an airport. (nerdwallet.com)
- You can rent an automatic but these cars can cost as much as 50% more than a manual vehicle. (earthtrekkers.com)
- For example, the Blue Cash Preferred® Card from American Express earns 3 percent cash back on purchases at U.S. gas stations (terms apply), and the Citi Premier® Card earns three points per dollar at gas stations, too. (afar.com)
External Links
alamo.com
jdpower.com
autoslash.com
sixt.com
How To
The Cheapest Way to Rent a Car: 10 Tips
Renting a car is one of the cheapest ways to travel around your town. You can find many companies offering services online and offline. You should be aware of the type of service offered by each company before you rent a car. You can choose private cars, vans, minivans, SUVs, luxury cars, etc. Some companies offer discounted rates for people who travel together. You can read reviews online before making a decision about which car rental company you want to use. To save money, book at least a month before your rental car is due. You won’t have to pay any extra for booking last-minute. It’s always worthwhile to compare prices from different companies.
Also, don’t forget to check if the company requires an insurance policy.
If you are going to drive yourself, make sure you have enough gas. Many companies charge higher per gallon rates. You might find yourself stuck in traffic jams if you drive outside major cities. Consider using public transportation in such cases. It is easier to take a cab or a shuttle bus if you have much luggage. You need to make sure that you only hire a reputable company if your plan is to use a taxi. Ask for references, and read customer reviews.
Remember that car rental agreements usually stipulate a mileage limit. You should carefully read your contract and verify that you are allowed to exceed the mileage limit. It is important to understand how much you will be charged for each mile.
Most companies permit you to use the GPS navigation system at no cost, but you may need to pay additional for satellite radio.
Remember that your vehicle may not be available for return until certain hours. Take care not to leave anything in the car.
You will need your driver’s license and credit card to rent the car. Fill out all paperwork correctly. You will be emailed a confirmation email shortly after. It contains details about the pickup day and time. Once you’ve picked up the car, be safe and follow the directions.
After you have reached your destination, be sure to park your car in a secure place. Many companies require you leave the keys at your office. The receipt is handy in case you misplace something while driving. Once you are done, return to the office and hand over the receipt and your documents. You can now enjoy your vacation!
