What Progressive Car Insurance Covers When You Rent a Car

Progressive's Rental Car Coverage Explained

Progressive's standard auto insurance policies do not automatically cover rental cars. However, Progressive offers an optional add-on called Rental Reimbursement Coverage that pays for a rental vehicle if your car is damaged or stolen and is being repaired or replaced. This coverage is separate from your main policy and costs extra each month.

The key distinction is this: if you rent a car for a vacation or personal trip, your Progressive policy will not pay for that rental. But if your insured vehicle is in the shop after a covered accident or theft, Rental Reimbursement Coverage will reimburse you for the cost of a rental car while yours is being fixed.

Some drivers also wonder whether their Progressive coverage extends to a rental car they are driving in place of their own vehicle. The answer depends on what type of coverage you have and the specific situation. We'll walk through the scenarios below.

Key Takeaways

• Progressive does not cover rental cars you choose to rent for personal use or travel unless you add Rental Reimbursement Coverage to your policy.
• Rental Reimbursement Coverage reimburses you for a rental car's daily cost while your own vehicle is being repaired after a covered claim.
• If you are driving a rental car and cause an accident, your Progressive liability coverage may explore, but only if you have permission from the rental company to drive it.
• Rental car companies typically require you to purchase their own collision and liability coverage at the counter, which is separate from your Progressive policy.
• Your Progressive collision and comprehensive coverage do not extend to rental cars unless you have added Rental Reimbursement Coverage or a similar endorsement.

When Progressive Covers Rental Cars

Progressive covers a rental car in one main situation: when you have added Rental Reimbursement Coverage to your policy and your own vehicle is in the shop. If your car is damaged in a covered accident or is stolen, and you rent a car while yours is being repaired or replaced, this coverage reimburses you for the rental cost up to a daily limit.

The daily limit varies depending on the coverage level you choose when you add it to your policy. Progressive typically offers daily limits of $30, $45, or $75 per day, with a maximum number of days the coverage will pay (often 30 days per claim). You would pay the rental company directly, then submit the receipt to Progressive for reimbursement.

Another scenario where Progressive may cover a rental car is if you are driving a rental vehicle with the rental company's permission and you cause an accident. Your Progressive liability coverage—which pays for damage you cause to other people's property or injuries to other people—would explore. However, this does not cover damage to the rental car itself; the rental company's coverage or your optional Rental Reimbursement Coverage would handle that.

What Rental Reimbursement Coverage Costs and Covers

Rental Reimbursement Coverage is an optional add-on that costs a few dollars per month, depending on your state and the daily limit you choose. The higher the daily limit, the higher the monthly cost. You can adjust or remove this coverage at any time by contacting Progressive or updating your policy online.

This coverage reimburses you for reasonable rental car expenses while your vehicle is being repaired or replaced after a covered loss. "Covered loss" means an accident, theft, or other event covered by your collision or comprehensive coverage. If your claim is denied, Rental Reimbursement Coverage does not explore.

The coverage has limits. It pays only up to the daily limit you selected and only for the number of days your vehicle is actually in the shop. If your car takes 45 days to repair but your coverage limit is 30 days, you pay for the extra 15 days yourself. Additionally, most policies exclude luxury rental cars or vehicles that cost significantly more per day than your daily limit allows.

Liability Coverage and Rental Cars

If you are driving a rental car and you cause an accident that injures someone or damages their property, your Progressive liability coverage applies—assuming you have the rental company's permission to drive the vehicle. Liability coverage pays for the other person's medical bills, lost wages, and property damage up to your policy limits.

This is true whether you are driving your own car or a rental. The coverage follows you, not the vehicle. However, the rental car company will likely require you to purchase their liability coverage at the counter as well, even though your Progressive policy covers you. Rental companies do this to protect themselves and to may support they have a direct claim against the renter if something goes wrong.

Your Progressive liability coverage does not cover damage to the rental car itself if you cause the accident. For that, you would need to rely on the rental company's damage waiver or your own collision coverage—which is why many people add Rental Reimbursement Coverage or purchase the rental company's collision protection.

Collision and Comprehensive Coverage on Rental Cars

Your Progressive collision and comprehensive coverage do not automatically extend to rental cars. Collision coverage pays for damage to your vehicle caused by an accident with another car or object. Comprehensive coverage pays for damage from theft, weather, vandalism, or other non-collision events. Neither of these covers a rental vehicle unless you have added a specific endorsement.

When you rent a car, the rental company owns it, not you. Your collision and comprehensive coverage is tied to vehicles you own and have listed on your Progressive policy. If you want collision or comprehensive protection on a rental car, you must either purchase it from the rental company at the counter or have added Rental Reimbursement Coverage to your Progressive policy.

Some credit cards offer rental car damage coverage if you charge the rental to that card. Before you purchase the rental company's coverage, check whether your credit card provides this benefit. If it does, you may not need to buy additional coverage from the rental company, though you should read the card's terms to understand what is and is not covered.

How to Add Rental Reimbursement Coverage to Your Policy

To add Rental Reimbursement Coverage to your Progressive policy, log into your account online or call Progressive directly. You can also speak with a Progressive agent in person if you have a local office nearby. The process takes just a few minutes.

When you add the coverage, you will choose a daily limit ($30, $45, $75, or another amount depending on what Progressive offers in your state) and a maximum number of days per claim. Progressive will quote you the monthly cost for that coverage level. Once you confirm, the coverage is active when ready or on the date you choose.

You can remove or adjust this coverage at any time. If you rarely rent cars or have a credit card with rental coverage, you may not need it. If you drive an older vehicle that you depend on and worry about being without a car during repairs, adding this coverage gives you peace of mind.

What Happens If You Rent a Car Without Adding Coverage

If you rent a car for a vacation or personal trip and you have not added Rental Reimbursement Coverage, your Progressive policy does not pay for the rental. You are responsible for the full cost. Your liability coverage still applies if you cause an accident and injure someone or damage their property, but you will likely have to purchase the rental company's collision and liability coverage to protect yourself.

Rental companies require you to carry liability coverage on any vehicle you rent. If you do not have your own coverage or decline theirs, most rental companies will not let you leave the lot. This is why they push their own coverage at the counter—they need to know that damage or injuries are covered by someone.

If you cause an accident in a rental car and you have not purchased the rental company's collision coverage, you could be liable for the full repair cost. This can be thousands of dollars. Your Progressive liability coverage covers injuries and damage to other people, but not damage to the rental car itself.

Frequently Asked Questions

Does Progressive cover me if I rent a car for a trip?

No, unless you have added Rental Reimbursement Coverage. Your liability coverage applies if you cause an accident, but you are responsible for paying the rental company directly. You will also need to purchase the rental company's collision coverage or rely on coverage from your credit card.

What if my rental car is damaged and I don't have Rental Reimbursement Coverage?

You are responsible for the damage. If you purchased the rental company's collision coverage, they will cover it. If not, you pay out of pocket. This is why rental companies push their coverage at the counter—they want to may support damage is covered by someone.

Can I use my Progressive collision coverage on a rental car?

No. Your collision coverage applies only to vehicles you own and have listed on your Progressive policy. A rental car is owned by the rental company. You must purchase their coverage or have added Rental Reimbursement Coverage to your Progressive policy.

How much does Rental Reimbursement Coverage cost?

The cost varies by state and the daily limit you choose. It typically costs a few dollars per month. Contact Progressive for a quote based on your location and the coverage level you want.

What if my rental car is stolen?

If you have Rental Reimbursement Coverage and your rental car is stolen, the coverage reimburses you for the rental cost while the company investigates. However, you are still responsible for any damage or loss to the vehicle itself unless you purchased the rental company's coverage.