Does Farmers Insurance Cover Rental Cars?

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Updated: April 29, 2026

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Key Takeaways
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Farmers auto policies extend collision, comprehensive, and liability to rental cars if those coverages are active. Check your declarations page to confirm coverage type and deductible before every rental.

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Farmers' rental reimbursement endorsement covers replacement transportation during your own car's repairs, not CDW on a rental you're currently driving.

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Buying CDW when full coverage already extends to the rental, or skipping it when you only have liability, are the two most common mistakes at the counter.

Does Farmers Insurance Cover Rental Cars?

Open your declarations page before you get to the rental counter. It confirms the two things that drive the CDW decision: whether collision and comprehensive are active, and what your deductible is. Farmers' common deductible options are $250 and $500, so know which one applies before you arrive. Our Farmers car insurance review covers full policy terms and pricing.

Car insurance covers rental cars through Farmers the same way it covers your own vehicle: collision, comprehensive and liability all extend at the same limits. Liability-only policyholders have no physical damage protection for the rental. A rental claim goes on your policy record and can affect rates at renewal. To trigger the extension, decline counter CDW, be the renter of record and use a personal Farmers policy.

Farmers Rental Reimbursement Coverage

Farmers' rental reimbursement endorsement pays for transportation while the policyholder's own vehicle is being repaired after a covered claim, not CDW on a rental currently being driven. Daily limits and total caps vary by policy tier, so verify current amounts and monthly endorsement pricing at farmers.com or through a Farmers agent before purchase.

The endorsement can be added online, by phone, or through a Farmers agent. It activates only after a covered collision or comprehensive claim. Routine maintenance and non-covered repairs don't trigger the benefit.

What Farmers Doesn't Cover on a Rental Car

Farmers' standard policy extension doesn't cover these rental car exposures, even for policyholders with full coverage.

Farmers' standard policy extension doesn't cover these rental car exposures, even for policyholders with full coverage.

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    Liability-only policyholders: no physical damage coverage

    Without collision or comprehensive on the policy, there is no protection for physical damage to the rental vehicle. The full repair cost falls to the renter. Check the declarations page to confirm coverage type before declining counter CDW.

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    Loss-of-use fees from the rental company

    The daily fee the rental company charges while a damaged vehicle is repaired isn't covered under standard Farmers personal auto policies. Confirm with a Farmers agent whether any available endorsement covers this gap for your specific policy type.

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    International rentals in excluded countries

    Farmers personal auto policies extend to domestic rentals and Canada but not to Mexico or most other international destinations. Confirm coverage territory before any international rental.

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    Business use of the rental

    Personal auto policies don't extend to rentals used for business purposes. Commercial use requires a separate commercial auto policy.

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MONEYGEEK EXPERT TIP

Coverage extension applies only to Farmers policyholders with collision and/or comprehensive on their personal auto policy. Deductibles apply. Confirm your deductible amount on your declarations page before renting.

Should Farmers Policyholders Buy Rental Car Insurance?

Should you get rental car insurance? Policyholders carrying only liability coverage should purchase counter CDW. No physical damage protection extends from a liability-only policy to the rental vehicle. Before deciding, pull the declarations page: it shows coverage type and deductible amount, the two variables that drive the CDW decision.  

For policyholders with full coverage, the deductible is the deciding factor. At $500 or below, declining counter CDW for domestic rentals doesn't expose the policyholder to significant out-of-pocket risk. At $1,000 or more, the daily CDW rate on a multi-day rental may cost less than the deductible on a single damage claim, in which case buying counter CDW makes financial sense even with full coverage.

Farmers Rental Car Insurance: FAQ

Does Farmers car insurance automatically cover rental cars?

What is the difference between Farmers' coverage extension and its rental reimbursement endorsement?

Does my Farmers deductible apply to a rental car claim?

Will filing a rental car claim raise my Farmers rates?

Can I add Farmers rental reimbursement coverage without an agent?

How does Farmers rental car coverage compare to other major insurers?

About Mark Fitzpatrick

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Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers. 

He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships. 

His insights on products ranging from car, home and renters insurance to health and life insurance have been featured in The Washington Post, The New York Times and NPR, among others. 

Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to the analysis of the personal insurance market. He's also a five-time Jeopardy champion!

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