Yes, in two different ways. Your Progressive policy can cover you when you rent a car, up to the same limits you carry on your own vehicle. Separately, Progressive’s optional rental reimbursement coverage pays for a rental car while your own car is being repaired after a covered accident.
The two work very differently, so it helps to know which situation you’re in before you rent.
Key Takeaways
- Progressive says your personal auto policy can cover you in a rental car up to your own coverage limits. Damage to the rental is covered only if you carry comprehensive and collision.
- That coverage generally applies in the U.S. and Canada. If you’re renting somewhere else, you’ll likely need insurance from the rental company.
- Rental reimbursement is a separate, optional coverage for when your car is in the shop. Progressive says daily limits are typically $40 to $70, for up to 30 or 45 days depending on your state.
- Rental reimbursement typically requires comprehensive and collision, and it doesn’t pay for a rental after a mechanical breakdown.
| Renting a car on a trip | Rental while your car is repaired | |
|---|---|---|
| What pays | Your regular Progressive coverages extend to the rental | Rental reimbursement coverage, if you added it |
| What it covers | Liability, plus damage to the rental if you carry comprehensive and collision | The cost of a rental car, up to your daily limit and time limit |
| Main limits | Your own policy limits and deductibles; generally U.S. and Canada only | Typically $40 to $70 a day, for 30 or 45 days depending on the state |
When You Rent a Car on a Trip
Progressive’s auto FAQ says, “Your personal auto policy with Progressive can cover you while driving a rental car, up to your coverage limits for your own vehicle.” Its rental car insurance guide adds that liability coverage applies when you drive a rental, and “Comprehensive and collision usually cover damage to the vehicle as well.”
If you don’t carry comprehensive or collision, Progressive suggests considering a loss or collision damage waiver from the rental agency or your credit card. The same applies if you’re traveling outside the U.S. and Canada: Progressive notes that “Most U.S. auto policies only provide coverage in the U.S. and Canada.”
A few details are worth checking before you decline the rental company’s coverage:
- Deductibles still apply. If you damage the rental, your comprehensive or collision deductible applies just as it would on your own car.
- Rental company fees. Progressive’s pages don’t say whether it pays the rental company’s loss-of-use or administrative fees after an accident, so ask before you rely on your policy alone.
- Business trips. Coverage for rentals is generally tied to personal use. If you’re renting for work, check with your employer and Progressive.
- Non-owner policies. If you have a non-owner policy instead of a regular one, Progressive says it “won’t cover any physical damage to the rental car.”
When Your Car Is in the Shop
This is where rental reimbursement comes in. Progressive’s FAQ says that with the coverage, “Progressive will pay for a rental (up to a specified limit and timeframe) while your own car is being repaired.” Its rental reimbursement guide says daily limits are typically $40 to $70, and the coverage lasts up to 30 or 45 days in total, depending on your state.
- You’ll typically need comprehensive and collision to add it.
- There’s usually no deductible on the rental coverage itself. Progressive says, “In most cases, rental reimbursement coverage doesn’t have an auto insurance deductible.”
- Extras aren’t included. Fuel, security deposits and any insurance you buy from the rental company generally aren’t covered.
- Breakdowns don’t count. Progressive says, “A mechanical breakdown doesn’t qualify as a covered claim.” Its separate Progressive Vehicle Protection plan, available in some states for newer cars, is the product for mechanical problems.
- Total losses cut the rental short. If your car is totaled, rental payments end sooner than they would for a repair. A Progressive policy form filed in Nevada, for example, ends them 72 hours after Progressive offers to settle the loss.
Even without the coverage, Progressive’s claims FAQ says, “your claims rep can still help you find a rental and offer you a discount.” And if another driver caused the accident, Progressive notes that “their insurance may end up paying for your rental car.” RateFrog’s guide to rental reimbursement coverage explains how at-fault claims and total losses affect your rental.
Is Rental Reimbursement Worth Adding?
It’s most useful if you depend on your car daily and don’t have another vehicle to fall back on. Pick a daily limit close to what rentals cost where you live, since you pay the difference if the rental costs more. For a look at how other insurers handle rentals, see RateFrog’s articles on GEICO rental car coverage and Allstate rental car coverage.
Frequently Asked Questions
Should I Buy the Rental Company’s Damage Waiver If I Have Progressive?
It depends on your coverage. If you carry comprehensive and collision, Progressive says your policy usually covers damage to the rental, minus your deductible. The waiver can still make sense if you don’t have those coverages, you’re renting outside the U.S. and Canada, or you’d rather avoid a claim and deductible. Check your credit card’s rental benefits too.
Does Progressive Cover Rental Cars in Mexico?
Generally no. Progressive says most U.S. auto policies only provide coverage in the U.S. and Canada, so you’d typically need to buy coverage for a rental in Mexico.
Will Progressive Pay for a Rental If Someone Else Hit Me?
The other driver’s insurer should pay for your rental if its driver was at fault, but that can take time while fault is sorted out. If you have Progressive’s rental reimbursement coverage, you can use it in the meantime.
Does Progressive Pay for a Rental If My Car Breaks Down?
Not under rental reimbursement. Progressive says a mechanical breakdown doesn’t qualify as a covered claim.