What is American Family’s policy on rental car coverage during the claims process?

Car repairs after an incident can take a while, and you may need an alternative vehicle for your commute, errands, and school runs. American Family’s rental reimbursement coverage ensures you don’t have to bear the additional financial burden of renting a car for your daily needs.

Almost a century old, American Family is among the best affordable auto insurance companies in the United States, and its rental reimbursement coverage can help you ensure you’re not left without a car after an accident.

In this article, we explain how rental car reimbursement works and explore American Family’s policy on paying for rental cars when your vehicle is in the shop.

How Rental Car Reimbursement From American Family Works

Rental car reimbursement is a type of coverage that protects you financially when you need to rent a vehicle while your car is getting fixed in the shop.

Insurance companies like American Family offer several different types of auto insurance coverage, but rental reimbursement is not covered by standard policies.

American Family offers rental reimbursement as an additional option when you buy collision and comprehensive insurance and sets a per-day and per-accident limit. You can claim car rental costs for reimbursement if you opt for this coverage.

For example, if your per-day limit is $50 and your per-accident limit is $1,500, American Family will cover your car rental only up to $50 a day and $1,500 in rental costs for the entire claim. If your car rental exceeds either of these limis, you will need to pay the difference out of pocket.

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Costs and Benefits of American Family’s Rental Reimbursement Coverage

The average rental length for collision replacement-related rentals was 18 days for the first quarter of 2022. Renting a car for such an extended period can burn a large hole in your pocket. Rental reimbursement can be a boon in such situations, making it an attractive add-on to your auto insurance.

American Family offers economical rental reimbursement coverage to customers. The company states that the annual rate of this coverage costs less than a single day’s car rental charges.

However, before you purchase this add-on, we suggest you evaluate how much insurance coverage you need.

American Family’s Policy on Rental Car Reimbursement

For American Family auto insurance policyholders, rental reimbursement coverage will reimburse you for car rental expenses when your car is in the shop for damages covered by collision and comprehensive coverage.

You can’t claim rental reimbursement when your car is in the shop for regular or scheduled maintenance.

This coverage also reimburses you for the use of alternative transportation, such as ride-share services (like Uber), commuter trains, taxis, and city buses.

To ask for reimbursement, you need to submit a claim form along with rental car receipts as proof of payment. However, if you decide to rent from a rental car company partnering with American Family (such as Enterprise), the insurance company will directly pay the rental agency.

Readmore: How do I file an auto insurance claim with American Family?

American Family Rental Car Reimbursement Coverage

Consider buying American Family’s rental reimbursement coverage if you are highly dependent on your car for your daily routine or work. While this coverage will pay for your car rental, you will also need to consider American Family’s per-day and per-accident reimbursement limits, which will be stated in your policy.