Does Farmers Offer Rental Car Insurance?
Last Updated on April 6, 2022
Farmers is one of America’s largest car insurance companies. Your Farmers auto insurance policy should cover you when renting a vehicle.
A personal auto insurance policy from Farmers should cover you when renting a vehicle in the United States, Puerto Rico, and Canada. However, some drivers may wish to buy extra coverage for added protection.
Keep reading to discover everything you need to know about how Farmers’ rental car insurance works.
Table of Contents:
- Farmers Auto Insurance Policies Cover Most Vehicle Rentals
- How Farmers Rental Car Insurance Works
- Farmers Rental Car Coverage Limits and Exclusions
- Do I Need the Rental Company’s Insurance If I Have Farmers?
- How Farmers Rental Reimbursement Coverage Works
Farmers Auto Insurance Policies Cover Most Vehicle Rentals
If you are renting an ordinary car, pickup truck, or SUV, then your personal auto insurance policy should function as primary coverage for that rental car.
A standard Farmers auto insurance policy covers most types of rental vehicles.
If you get into an accident while driving the rental car, then you would make a claim through Farmers. Farmers will cover any damage to the rental car up to the limits of your policy, and Farmers treats the incident just like an accident involving your own vehicle.
Your Farmers policy should cover you when renting a vehicle in the United States, any US territories, Puerto Rico, and Canada. If traveling outside of these areas, then you may need to buy insurance from the rental car company.
A standard Farmers policy will not cover alternative vehicles – like RVs. However, you can add RV coverage to your policy prior to renting the vehicle.
A standard policy also does not cover moving trucks. If you are renting a U-Haul or similar truck, for example, then you may need to buy extra coverage.
How Farmers Rental Car Insurance Works
Farmers’ rental car insurance works similar to the rental car insurance provided by other companies. You rent a vehicle as you normally would, and Farmers provides primary insurance coverage for that vehicle during the rental.
Here’s how it works:
- You rent a vehicle from any rental car agency.
- Your Farmers policy covers a standard rental car, typically for rental periods of up to 30 days.
- If you get into an accident while driving the rental car, then you contact your insurer to make a claim. Your insurer handles the claim from start to finish. You may pay a collision coverage or comprehensive coverage deductible, depending on the type of loss.
The rental car agency may charge additional costs, including loss of use damages. Farmers may or may not cover these charges, depending on your policy. However, you may have secondary coverage through your credit card.
Farmers Rental Car Coverage Limits and Exclusions
Even if you have a Farmers auto insurance policy, you may still wish to buy auto insurance from the rental car company.
If you only have a minimum liability Farmers auto insurance policy, for example, then you only have minimum liability insurance on your rental car. That means you will need to pay for repairs to the vehicle out of pocket.
Similarly, the rental car company could charge for things that aren’t covered by traditional car insurance – like loss of use coverage while the rental car is being repaired.
Notable limits and exclusions with Farmers include:
Liability Policies Won’t Cover Damage to the Rental Car: States only require you to carry liability insurance, including bodily injury and property damage liability insurance. States do not require you to carry insurance that protects your own vehicle, including collision and comprehensive coverage. If you have a minimum liability insurance policy, then that minimum liability policy will not cover damage to the rental car. Instead, it only covers damage you cause to other people and their property.
You May Have Insufficient Coverage or Low Limits: Many drivers are underinsured. You may have collision and comprehensive coverage, but the limits are too low to cover damage to a rental car. If you’re renting a high-end SUV, for example, and you only have $25,000 of collision coverage, then you may be left paying out of pocket after a major accident.
Claims Raise Rates: When you use your own Farmers policy to cover a rental vehicle, you’re making claims on your own policy. Any claims you make will raise rates. If you want to avoid higher insurance premiums because of a rental car insurance claim, then you may wish to buy the rental car company’s collision damage waiver.
You Still Pay Your Deductible: If you damage your rental car, you make a claim through your own insurer, which means you need to pay your deductible. A typical collision coverage deductible is $500 to $1,000, while a typical comprehensive coverage deductible is $250 to $500. After you pay this deductible, Farmers should cover all remaining damages up to the limits of your policy.
No Coverage for Possessions, Luggage, and Items in Your Vehicle: Many rental car companies sell personal possession coverage, which protects any items in your rental vehicle. Car insurance does not cover items in your personal vehicle or a rental vehicle. Homeowners and renters insurance should cover these items. However, if you don’t have homeowners or renters insurance, then you will not be covered for any loss of possessions from the rental vehicle.
Does Not Cover Alternative Vehicles: A standard Farmers policy does not cover moving trucks, RVs, and similar alternative vehicles. You may need to adjust your policy before you rent the vehicle. Or, you can buy coverage from the rental company.
Do I Need the Rental Company’s Insurance If I Have Farmers?
If you have Farmers auto insurance, then you should be able to safely turn down the rental car company’s insurance. However, some drivers still buy insurance for added peace of mind and fewer damages after a loss.
All rental car companies sell a collision damage waiver (CDW) or loss damage waiver (LDW), for example. In exchange for a fee (say, $10 to $50 per day), the rental car company waives your responsibility for any damage to the rental vehicle. If you damage or total the rental car, then the rental car company will not charge you for damages. You will not need to make a claim through your insurer, and your rates will not increase.
Some rental car companies also offer personal possession coverage or health insurance coverage. If you already have homeowners insurance, renters insurance, and health insurance, then you should be covered.
Review your personal insurance coverage to verify you’re not doubly insuring yourself.
How Farmers Rental Reimbursement Coverage Works
Farmers has a separate type of rental car insurance called rental reimbursement coverage.
Rental reimbursement coverage compensates you for renting a vehicle if your ordinary vehicle needs repaired.
If your ordinary vehicle was involved in an accident, for example, and you need to rent a new vehicle to drive around town, then Farmers could cover the cost of renting that vehicle through your rental reimbursement coverage.
Here’s how rental car reimbursement coverage works with Farmers:
- You add rental reimbursement coverage to your Farmers car insurance policy. You can add this coverage to any full coverage car insurance policy (which includes comprehensive and collision coverage).
- If you file a collision or comprehensive coverage claim, then Farmers activates your rental reimbursement coverage.
- You pay for the rental car upfront, and Farmers reimburses you for the cost of renting that vehicle, minus your deductible.
Rental car reimbursement typically costs around $5 to $10 per month to add to a policy. It can quickly pay for itself if you need to rent a vehicle. Some drivers also like rental reimbursement coverage for peace of mind.
Final Word on Farmers Rental Car Insurance
If you have a standard auto insurance policy with Farmers, then your auto insurance policy should extend to cover a rental car.
Farmers extends the same coverage to your rental car as you have on your own vehicle. If you have minimum liability insurance, for example, then your rental car will only have minimum liability coverage. If you have full coverage, then your rental car also has full coverage.
If you need to rent a car because your ordinary car is being repaired after a covered loss, then Farmers may or may not cover you. Farmers will reimburse you for the cost of renting a vehicle if you have rental reimbursement coverage on your policy. Otherwise, you need to pay for a rental car out of pocket.
Contact Farmers or review your policy today to verify rental car coverage.
