Does American Family Insurance Cover Rental Cars? Complete Guide

Introduction

When you rent a car, having adequate insurance coverage is crucial to protect you financially. Rental cars come with responsibility and liability that your own personal auto policy may not fully cover. So it’s important to understand how your insurance handles rental cars before you hit the road. In this comprehensive guide, we’ll explain does American Family Insurance cover rental cars and what you need to know about protecting yourself and your wallet. Let’s explore American Family Insurance about rental cars with bigdatawiki.net.

Overview of Does American Family Insurance Cover Rental cars

In general, American Family Insurance does extend many standard auto insurance coverages to rental vehicles. This includes liability insurance for injury and damage you cause others, uninsured motorist coverage, medical payments, comprehensive and collision. These core coverages work similarly as if you were driving your own car.

However, does American Family Insurance cover rental cars policies contain important exclusions and gaps in rental car coverage to be aware of. Certain scenarios and risks may not be covered. That’s why it’s essential to understand the details of your American Family policy’s rental car coverage. Let’s take a deeper look at how major coverages apply and where gaps exist.

Liability Insurance Coverage

Liability insurance is mandatory in every state and pays for injury or damage you cause others when driving. The good news is does American Family Insurance cover rental cars liability insurance does carry over when you drive a rental car. This includes:

• Bodily injury liability – Covers medical bills for others if you injure them in an accident with the rental car.
• Property damage liability – Pays for damage you cause to other vehicles or property with the rental car.
• Uninsured and underinsured motorist coverage – Protects you if hit by an uninsured or underinsured driver.

Liability limits like 50/100/50 or 100/300/100 apply just as they would in your own car. However, experts recommend considering extra liability insurance specifically for a rental car if your personal car limits are low or you have significant assets to protect. Rental car liability insurance supplements are inexpensive – often just a few dollars a day.

The bottom line is does American Family Insurance cover rental cars liability insurance does extend to rental cars up to your policy limits. But consider extra rental liability limits for high net worth protection.

Medical Payments Coverage

Medical payments coverage pays medical bills for you and your passengers if injured in an accident, regardless of fault. This coverage does apply in an American Family-insured rental car just as it would in your personal vehicle.

Typical limits of $1,000-$10,000 help cover urgent treatment, ambulence fees or hospital visits after a rental car accident. However, consider that higher medical costs can result from accidents far from home. Supplemental medical coverage just for rental cars may be a wise add-on purchase for extensive worldwide travel.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage protects you when the at-fault driver has no or insufficient liability insurance. 

Does American Family Insurance cover rental cars including this coverage for rental cars at your policy limits.

This becomes protection if you’re hit by an uninsured driver, underinsured driver, or even a hit-and-run driver when operating a rental car. It’s important coverage given over 10% of drivers are uninsured. Make sure you know your UIM limits and that they are sufficient for your needs.

Comprehensive and Collision Coverage

Comprehensive and collision insurance cover damage to the rental car itself and apply with does American Family Insurance cover rental cars policies. Collision pays if you crash the rental car or flip it. Comprehensive covers non-collision damage like vandalism, theft or storm damage.

However, your same deductibles apply – often $500-$1000 – that you pay out of pocket before coverage kicks in. Plus, limits on loss of use and worldwide travel may apply. So while comp and collision transfer to rentals, gaps exist that supplemental coverage can fill.

Key Exclusions and Limitations

In addition to deductibles and loss of use gaps, watch for these key exclusions with does American Family Insurance cover rental cars:

• Worldwide rental coverage – Standard American Family policies only extend coverage in the U.S. and Canada. Overseas rentals require special worldwide rental coverage.
• Rental period limits – Coverage is often limited to 30 consecutive days, requiring notification for longer terms.
• Driver restrictions – Undisclosed drivers may not be covered. Young renters under 25 may have exclusions.
• Vehicle use – No coverage for ridesharing, delivery driving or off-roading with the rental car.
• Expensive or exotic car rentals – Specialty vehicles may be excluded or need special coverage.

These limitations highlight the gaps that supplemental rental car coverage can fill in. Never assume your personal auto policy fully covers a rental car.

Supplemental Rental Car Coverage Options

To help fill coverage gaps from does American Family Insurance cover rental cars, experts strongly recommend adding supplemental rental car coverage when renting a vehicle:

Loss Damage Waiver (LDW)

LDW, or collision damage waiver, covers damage to the rental vehicle itself. This includes the gaps for loss of use, your policy deductible, and worldwide travel exclusions. LDW ensures you don’t pay high out-of-pocket costs if the rental is damaged.

Liability Insurance Supplement

Higher liability limits just for the rental car can supplement your American Family policy limits. This provides extra protection in case of a major accident. Often inexpensive for peace of mind.

Personal Effects Coverage

Your own car insurance does not cover loss of personal items left in a rental car, like luggage, golf clubs, laptops or cameras. Personal effects coverage adds protection for your belongings.

Emergency Roadside Assistance

Towing, lock-out service, flat tire change and battery jump starts can be covered for rental cars if you don’t have AAA. Gives peace of mind driving in unfamiliar areas.

By supplementing your ‘’does American Family Insurance cover rental cars’’ policy with rental-specific options like these, you can drive worry-free knowing potential gaps are covered.

Coordinating Does American Family Insurance cover rental cars Company Policies

When renting a car, two insurance policies come into play – your own American Family coverage and the rental company’s protections:

• Your American Family policy covers liability, med pay, comp/collision at your limits.
• The rental company covers loss of use, deductibles, injuries on premises.

Experts recommend reviewing both policies and purchasing the rental company’s damage waiver coverage to minimize financial risk. While more expensive, it provides another layer of coverage for the vehicle itself on top of your American Family protections.

Declining the rental company’s insurance is risky if relying solely on your personal auto policy given the gaps that may apply. The combined coverage from your American Family policy plus rental company waiver insurance provides the most complete protection when renting a car.

Steps for Renting With American Family Insurance

Follow these best practice steps when renting a car with does American Family Insurance cover rental cars coverage:

• Review American Family rental car exclusions and worldwide travel rules. Purchase supplements if needed.

• Inspect the rental car carefully and document pre-existing damage.

• Maximize coverage by purchasing the rental company’s collision damage waiver.

• Use credit cards that provide free supplemental rental car coverage.

• For travel beyond the U.S. and Canada, add American Family’s worldwide rental coverage.

• If driving for ridesharing or delivery, obtain proper coverage as standard policies exclude this use.

• Report any rental car damage immediately to American Family and the rental agency.

Alternatives to Rental Car Coverage with American Family

Beyond supplemental coverage, alternatives exist to provide rental car protection without relying solely on does American Family Insurance cover rental cars:

• Pay with premium travel credit cards that include rental car collision coverage.
• Consider rental car peer-to-peer insurance companies that offer more specialized coverage.
• For ridesharing drivers, purchase supplemental rideshare rental coverage.
• Join auto clubs like AAA that offer members rental car coverage and travel benefits.

By pairing alternatives like these with smart use of American Family and rental company policies, you can customize a strategy that fits your exact rental car needs.

The Bottom Line

Does American Family Insurance cover rental cars and does extend core auto coverages like liability, medical payments, comp and collision to rental cars, significant gaps exist for deductibles, loss of use, worldwide travel and more. 

Carefully review your American Family policy language, exclusions and limits when renting a car at home or away. Combining your coverage with rental company waivers and other supplemental insurance is the safest way stay fully protected from financial risk.