Does Progressive Offer Rental Car Insurance?
Last Updated on January 14, 2022
If you have car insurance with Progressive, then Progressive should cover you when driving a rental vehicle.
Progressive, like most insurers, extends your personal insurance policy to cover you when driving a rental car. That means any liability, collision, or comprehensive coverage on your Progressive car insurance policy will carry over to your rental car.
Does Progressive offer rental car insurance? Should you buy extra car insurance from the rental car company? Keep reading to discover everything you need to know about how Progressive covers rental cars.
Table of Contents:
- Progressive Policies Extend to Cover Rental Cars
- Limitations of Progressive Rental Car Insurance
- How Rental Reimbursement Coverage Works with Progressive
- Should You Buy Car Insurance from the Rental Car Company?
Progressive Policies Extend to Cover Rental Cars
If you have an ordinary car insurance policy with Progressive, then that car insurance policy should extend to cover any car you rent.
Let’s say you rent a vehicle on vacation. As long as you’re driving the vehicle for personal use, and as long as your Progressive policy remains active, your Progressive policy should cover you when renting the vehicle. That means you don’t need to buy extra insurance from the insurance company (unless you want added coverage).
To understand how Progressive covers rental cars, it helps to understand how insurance works:
Liability Coverage: Required in most states, liability coverage compensates other drivers and pedestrians for damages you cause when driving. If you collide with another vehicle or person, for example, your liability coverage will cover medical bills, vehicle repair costs, and other expenses.
Collision Coverage: Optional in all states, collision coverage covers your own vehicle after an accident. You pay your deductible, and Progressive covers all remaining costs of repairing your vehicle to pre-loss condition.
Comprehensive Coverage: Also optional in all states, comprehensive coverage protects your car against damages that occur outside of collisions. It covers collisions with animals, for example, along with hailstorm damage, fire damage, flood damage, vandalism, theft, and broken windshields.
Whatever coverage is on your original Progressive car insurance policy will extend to cover your rental car. If you have liability and collision coverage on your Progressive policy, for example, then this liability and collision coverage will carry over to your rental car.
Limitations of Progressive Rental Car Insurance
Your Progressive policy will extend to cover your rental car. However, there are some limitations to this coverage.
Coverage Limits: Some people carry the lowest possible liability coverage limits as required by the state. Others carry $1 million of coverage or more for added protection. Your Progressive coverage limits carry over to your rental vehicle. If you have minimum liability coverage in your state, then those limits will raise or lower to match the state in which you’re renting the vehicle. This could leave you under-insured in an accident.
Lack of Collision or Comprehensive Coverage: If you have full coverage car insurance, then you’ll have collision and comprehensive coverage on your rental vehicle, giving you added protection against accidents, fire damage, and other incidents. However, if you don’t have collision or comprehensive coverage, then you could be under-insured when renting your vehicle.
Lack of Coverage for Other Rental Car Costs: Even if you have insurance, your rental car company could charge you for damage to the vehicle. You may need to pay a deductible, for example. Or, the rental car company could charge you a daily fee for the length of time it takes to repair the car. Insurance covers the cost of repairing the car, but it does not cover the opportunity cost of leaving the car in the repair shop. Because the rental car company cannot make money from the car during this period, you may need to pay.
Lack of Coverage for Personal Effects: If someone breaks into your rental car and steals your stuff, or if your luggage is destroyed in an accident, then your car insurance will not cover you. You may be covered through homeowners or renters insurance. Or, you can buy personal effects coverage through the rental car company for added peace of mind.
Because of these limitations with Progressive (and all other insurers), you may want to buy the collision damage waiver from the rental car company.
How Rental Reimbursement Coverage Works with Progressive
Progressive offers rental reimbursement coverage. This coverage works differently than other types of insurance coverage. If you have rental reimbursement coverage with Progressive, Progressive will compensate you for the cost of renting a vehicle.
To qualify for rental reimbursement, you must:
- Add rental reimbursement coverage to your policy before an accident (it’s optional coverage available for a few extra dollars per month)
- Damage your car in a covered accident that requires repairs
- Require a rental car for one or more days while your vehicle is being repaired
If you meet the above qualifications, then Progressive will compensate you for the cost of renting the car. Progressive, like most insurers, pays a maximum of around $50 per day to cover the cost of a rental car, allowing you to continue driving while your ordinary car is being repaired.
Contact Progressive to check if you have rental reimbursement coverage on your policy. Or, consider adding rental reimbursement coverage to your policy for a few extra dollars per month.
Should You Buy Car Insurance from the Rental Car Company?
If you have a Progressive car insurance policy, then you may be considering buying car insurance through the rental car company.
Your Progressive policy will extend to cover your rental car. However, it could leave you under-insured in a collision – especially if you carry minimum liability coverage.
If you don’t buy car insurance from the rental car company, then you could also be forced to pay the deductible after a loss.
For peace of mind, many drivers buy the collision damage waiver from the rental car company. When you buy the collision damage waiver, you avoid all responsibility for damage to the rental vehicle. You pay a fixed fee, and the rental car company assumes all risk during your rental period.
Final Word on Progressive’s Rental Car Insurance
Progressive offers rental car insurance coverage to all policyholders, assuming you’re driving the rental car for personal use.
If you have car insurance with Progressive, then that car insurance will extend to any vehicle you rent. Progressive will extend any liability, collision, and comprehensive coverage to your rental vehicle.
Similarly, if you have rental reimbursement coverage, then Progressive will compensate you for the cost of renting that vehicle. Instead of paying for the vehicle out of pocket, you receive compensation from Progressive until your ordinary vehicle is repaired.
To learn more about how Progressive covers rental cars, or to verify you have rental car insurance with Progressive, contact Progressive today.
