compensation car Share definition Flag A car, usually a Hummer or Jaguar, that identifies that a man is covering up for his small penis. Yesterday I saw my Asian co-worker run crying out of work, the next day he bought a hummer. Clearly a compensation car. compensation car by Redneck Prep December 9, 2010 0 0 Get merch Get the compensation car mug. Buy Now — $32.95 See more merch