What is American Family’s policy on rental car coverage during the claims process?
American Family’s policy on rental car coverage during the claims process allows you to get reimbursed when your car is in the shop for damages after an incident. American Family's rental reimbursement insurance is affordable and covers other means of transport, such as taxis and commuter trains.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Dec 18, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 18, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- American Family offers rental reimbursement coverage as an add-on when you purchase auto insurance
- With this coverage, you can claim reimbursement up to specified limits for a rental car when your car is in the shop
- You can also claim reimbursement for ride-share services, light rail, taxis, and local buses
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.
Frequently Asked Questions
Who can buy rental reimbursement coverage?
American Family generally offers this coverage as an add-on to customers who buy collision and comprehensive coverage. Hence, if you have only the state-mandated minimum auto insurance, you may not be able to buy this coverage.
How do I get my rental car costs reimbursed?
If you rent a car from an approved car rental agency, American Family will pay them directly. But if you choose another car rental company, you will need to submit your receipts to American Family along with a claim form to get reimbursed.
How long it takes for the insurance company to pay out a claim varies, but you should get your reimbursement within a few days.
How much can I receive as rental car reimbursement?
This depends on the limits stated in your American Family policy. There may be a per-day or per-accident limit — or both — so be sure to check these before you choose your rental car.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.