An important requirement: Remember, you must have Other Than Collision and Collision coverage on your policy for the physical damage protections to apply to a rental. If you carry liability only, your liability coverage applies, but you won't have coverage for damage to the rental car itself.
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| | | No extra cost — already on your policy |
| | | Available via endorsement |
| | | Available via endorsement |
| | | Available via endorsement |
| | | Available via endorsement |
| | | Available via endorsement |
| | | Includes loss of use coverage (see below) |
At $20/day, the base coverage may handle economy and compact rentals in many Indiana markets. If you regularly rent mid-size or full-size vehicles, or if you live in an area where rental rates are higher, upgrading to a higher daily limit through an endorsement can help save you from paying the difference out of pocket.
Two common scenarios where your coverage transfers
Your car is in the shop after an accident
You're in a covered accident and your vehicle needs body work. While it's being repaired, your Transportation Expenses Coverage may apply and could cover the cost of a rental (up to your daily limit for up to 30 days). The coverage on your personal auto policy, liability, collision, Other Than Collision, also may apply to the rental car while you're driving it.
You rent a car for vacation or travel
You fly into a destination in the U.S. and rent a car at the airport. The coverage on your Indiana Farm Bureau Insurance auto policy may apply to the rental, as long as you (the named insured) or a family member in your household is driving and is listed on the rental agreement. This means you may not need to buy the additional insurance the rental counter tries to sell you.
When your policy might NOT cover a rental car
There are a few important exceptions to know about before you decline additional coverage at the counter:
Liability-only policy: If you don't carry Collision and Other Than Collision coverage on your own vehicle, those protections won't apply to the rental. Your liability coverage still applies, but you'd be responsible for damage to the rental car itself.
International travel: Many personal auto policies, including Indiana Farm Bureau Insurance's, often do not extend coverage to vehicles rented outside the U.S. If you're renting a car abroad, purchasing the rental agency's coverage (or a travel insurance policy with rental car protection) is worth considering.
Specialty vehicles: Renting a moving truck, U-Haul, RV, or exotic/luxury car? These may not be covered under your personal auto policy. Your policy typically covers vehicles similar in type to what's on your policy.
"Loss of use" fees: If you damage a rental car and the rental company charges a daily fee for the time the vehicle is out of service being repaired, many standard policies don't cover that fee. Indiana Farm Bureau Insurance's Valet Endorsement does provide loss of use coverage, a valuable add-on if you rent frequently.
What about the insurance the rental company offers?
At the counter, the rental agency will typically offer some combination of these coverages:
Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW): Waives your responsibility for damage to the rental vehicle. If you already have Collision and Other Than Collision coverage, you may not need this, your policy may cover the same scenarios.
Typically, a rental agency option worth considering is the CDW/LDW if your policy doesn't cover loss of use fees. If you damage the rental and the rental company charges $50/day while it's being repaired, that cost can add up fast. Indiana Farm Bureau Insurance's Valet Endorsement can help cover this, but if you don't have it, the rental company's waiver might be worth the daily charge.
Credit card rental car coverage: a secondary safety net
Many credit cards offer rental car protection if you use the card to pay for the rental. This is typically secondary coverage, meaning it may apply after your personal auto policy pays. It can potentially help cover your deductible or fill small gaps.
Before relying on credit card coverage alone, check the specifics: coverage limits, what's excluded (SUVs, trucks, international rentals), and whether you need to decline the rental company's insurance to activate the benefit. Credit card coverage can be a nice backup, but it's not a substitute for ensuring your auto insurance policy provides appropriate coverage.
What to do if your rental takes longer than 30 days
Body shops face parts shortages, staff constraints, and longer repair timelines for vehicles with advanced technology. It's possible to run out of your 30 days of rental coverage before your car is ready. Here are a few ways to help stretch your coverage:
These aren't always realistic options, but even saving a few days can make the difference between staying within your coverage and paying out of pocket.
Want to check your rental car coverage?
Review your policy online to see what's included, or contact your local agent to discuss increasing your Transportation Expenses limits or adding the Valet Endorsement.
Review Your Policy
Frequently asked questions about rental car insurance
Does my car insurance cover a rental car?
In most cases, yes. If your Indiana Farm Bureau Insurance personal auto policy includes both Collision and Other Than Collision coverage, those protections may apply to a rental car driven by you or a family member in your household within the U.S. Liability coverage generally applies regardless of whether you have physical damage coverage.
What is the difference between rental car insurance and rental car reimbursement?
Rental car insurance is coverage sold by the rental agency at the counter. Rental car reimbursement (called Transportation Expenses Coverage at Indiana Farm Bureau Insurance) is a feature of your personal auto policy that may pay for a rental car while your own vehicle is being repaired after a covered loss. They're different products that serve different purposes, though the terms are often used interchangeably.
Can I rent a car without having my own car insurance?
Yes, but you'll need to purchase the insurance coverage offered by the rental agency to be protected. Without your own auto insurance policy, you won't have liability, collision, or comprehensive coverage protecting the rental vehicle.
When does car insurance NOT cover rental car expenses?
Your personal auto policy may not cover a rental car if you carry liability-only coverage (no collision or comprehensive to transfer), if you're renting for business use not covered by your policy, if you're renting outside the U.S., or if you're renting a specialty vehicle like a moving truck or RV. Loss of use fees charged by the rental company are also typically not covered by most standard policies.
What happens if I go over the 30-day rental limit?
Indiana Farm Bureau Insurance's Transportation Expenses Coverage maxes out at 30 days. After that, you're responsible for any additional rental costs. To help maximize your coverage days, wait to pick up the rental until your car is actually at the body shop, and coordinate with the shop to ensure parts are in before you drop off your vehicle.
What is the Valet Endorsement?
Indiana Farm Bureau Insurance's Valet Endorsement increases the minimum rental coverage to $41/day and adds loss of use coverage, protection against fees the rental company may charge if the vehicle is out of service due to damage you caused. This is a valuable add-on for frequent renters.
Does my credit card cover rental car insurance?
Many credit cards offer secondary rental car coverage when you use the card to pay for the rental. This typically applies after your personal auto insurance and can help cover your deductible or small gaps. Check your card's specific terms; coverage varies by issuer and card tier, and some exclude certain vehicle types or international rentals.