American Family rental reimbursement pays for the cost of a rental car after the policyholder’s vehicle is damaged by a covered cause, such as an accident. Rental car reimbursement insurance from American Family usually costs less than $10 per month, and drivers can purchase a limit of up to $45 per day and up to $960 per claim. This coverage does not apply to rental vehicles used while the car is undergoing routine maintenance, and drivers typically need collision and comprehensive coverage to be eligible.
Here’s how American Family rental reimbursement works:
You add rental reimbursement coverage to a American Family car insurance policy that includes collision and comprehensive coverage.
The rental reimbursement coverage kicks in when you file a collision or comprehensive claim.
If you rent your car from Enterprise, American Family will be billed directly.
Otherwise, you’ll pay for the rental yourself and be reimbursed later.
In general, rental reimbursement coverage is worth it if you think you are likely going to be in a car accident and need a rental car within the next few years. If not, then you likely won’t get much from the coverage, even though it’s relatively cheap. To learn more, check out WalletHub’s guide to rental reimbursement insurance.
Yes, your car insurance covers rental cars, in most cases. Standard auto insurance policies cover car rentals in the U.S., up to your normal policy limits and with your regular deductible, but it’s best to check the details of your car insurance policy to make sure you’re aware of any specific rental car restrictions.… read full answer
In addition, other policies, like health or home insurance, kick in for certain situations. Your health insurance will usually cover injuries resulting from a car crash, and home or renters policies cover items stolen from a car. Also, depending on the credit card you used to rent a car, you may be able to file a claim through it, too.
When Your Car Insurance Does Not Cover Rental Cars
Although every standard car insurance company has its own criteria for covering rental cars, a few situations are commonly excluded.
Most insurers do not cover rental cars outside of the U.S., though you can buy specialty rental car or travel insurance to fulfill another country’s insurance requirements.
If you get into an accident, the rental car company may charge you for things that your insurance won’t pay for, like loss-of-use or administrative fees.
Many personal car insurance policies do not cover cars rented for business reasons
Most companies have time limits, meaning that your insurance will cover a rental car for a few weeks or a month at most.
If you carry full coverage, your insurance will only pay for the limits established by the value of your usual car, even if the rental car is worth more.
When to Buy Additional Rental Car Insurance
You don’t have your own car insurance policy.
You have a personal insurance policy but want additional coverage.
You are renting a car for business purposes.
You are renting a car outside of the U.S.
Keep in mind that not every state requires rental car companies to automatically provide the minimum mandated insurance coverage. In California, for example, you need to carry a personal car insurance policy with liability coverage or purchase the rental car company’s additional liability coverage in order to drive legally.
Yes, American Family offers rental car insurance. If you already have a personal auto policy with American Family that includes liability, comprehensive, and collision coverage, this insurance will likely extend to cover your rental car. If you only have liability insurance with American Family, physical damage to the rental vehicle will not be covered.… read full answer
You can talk to a American Family customer service representative at 1 (800) 692-6326 to see if your personal policy will extend to your rental car. If you do not have sufficient coverage through American Family to cover your rental car, you can purchase insurance from your rental car company, or see if it is offered by your credit card company.
American Family Rental Car Coverage
Liability Insurance. American Family liability insurance will usually extend to your rental as long as you are driving in the U.S. Your personal liability insurance will pay for others’ medical expenses and repairs to others’ property resulting from an accident you caused in your rental vehicle.
Collision and Comprehensive Insurance. If you have collision and comprehensive insurance with American Family, this will typically cover any damage that occurs to the rental vehicle itself during your rental period. However, your American Family collision and comprehensive coverage limits may not be high enoughif you are renting a car with a much higher value than your personal vehicle and the car gets totaled.
Personal Injury Protection or MedPay. If you have personal injury protection (PIP) or MedPay through your personal auto policy, medical expenses for you and your passengers will be covered even after a rental car accident. If you do not have either type of coverage, you can purchase personal accident insurance through the rental car company.
American Family also offers rental car reimbursement coverage, which helps pay for the cost of a rental car while your personal vehicle is being repaired for a covered claim. If you add rental reimbursement to your policy, American Family will pay about $25 to $125 toward the cost of your rental, up to 45 days. You select specific rental car reimbursement limits when you purchase the add-on. For example, if you choose $30 per day/$900 per loss as your rental reimbursement limits, American Family will pay up to $30 per day, but no more than $900 per claim for your rental.
No, you do not need insurance to rent a car because rental companies have their own insurance. Rental car companies usually provide minimum liability coverage only, so if you don’t have personal insurance, you’ll probably want to purchase extra rental car insurance through the rental company. If your personal car is insured and you pay for your rental with a credit card, you can probably skip the optional coverage offered at the rental counter.… read full answer
You don’t have to purchase all of these coverage types to be protected while driving your rental. But minimum liability insurance carried by the rental car company isn’t enough protection if you get into an accident.
When You Don't Need The Rental Company's Insurance
Before you buy the rental company’s insurance, you should consider what coverage you may already have through your personal car insurance. The coverage limits and deductibles you have on your personal vehicle typically still apply to rentals, as long as you’re renting for personal use. Many major credit cards also offer coverage for rental cars if you pay with your card and decline the collision damage waiver offered by the rental company.
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