Progressive covers rental cars, but only if you add rental reimbursement to your policy
Progressive does not automatically cover rental car costs. You have to purchase rental reimbursement coverage as an add-on to your existing policy. Once you have it, Progressive will pay for a rental car while your vehicle is being repaired after a covered claim — typically a collision, comprehensive loss, or other insured event.
The coverage applies only to repairs covered under your collision or comprehensive insurance. If you cause an accident and have collision coverage with rental reimbursement added, Progressive pays for the rental. If a tree falls on your car and you have comprehensive coverage with rental reimbursement, Progressive covers the rental during repairs. If you do not have collision or comprehensive coverage, rental reimbursement will not help you.
How much Progressive pays per day varies by the plan you choose when you add the coverage. You pick a daily limit — commonly $30, $45, or $60 per day — and a maximum total amount for the rental period. Progressive pays up to those limits while your car is in the shop.
Key Takeaways
- Rental reimbursement is an optional add-on that costs a few dollars per month and must be purchased before you need it.
- Progressive pays the rental company directly in most cases, so you do not have to front the money and wait for reimbursement.
- The coverage only works if the repair is covered under your collision or comprehensive insurance.
- You choose the daily limit and maximum total when you add the coverage, and Progressive pays up to those amounts.
- If you do not have rental reimbursement and need a rental car, you pay out of pocket and cannot claim it back from Progressive.
How to add rental reimbursement to your Progressive policy
You can add rental reimbursement coverage by calling Progressive, using their online account portal, or speaking with an agent. The process takes a few minutes. You will choose a daily limit (the amount Progressive pays per day for the rental) and a maximum total (the total amount they will pay for the entire rental period). Common daily limits are $30, $45, or $60, and maximum totals range from $900 to $1,500 depending on your plan.
The cost is small — typically $3 to $10 per month depending on your state and the limits you choose. You can add it to a new policy or add it to an existing one at any time. However, the coverage does not apply retroactively. If you add it today and have an accident tomorrow, you are covered. If you have an accident today and add it tomorrow, you are not covered for that claim.
Some employers or credit card companies offer rental car coverage as a benefit. Before you pay for Progressive's rental reimbursement, check whether your employer's insurance plan or your credit card already covers rentals. If it does, you may not need to add it to your Progressive policy.
What happens when you file a claim and need a rental car
After you report a claim to Progressive, tell the claims adjuster that you have rental reimbursement coverage and need a rental car. Progressive typically has a network of rental companies they work with, and the adjuster will direct you to one of them. You go to the rental location, show your driver's license and insurance information, and pick up a car. Progressive pays the rental company directly, so you do not pay anything upfront.
The rental period starts when your car enters the repair shop and ends when the repairs are finished and your car is ready to pick up. Progressive pays for the rental only during that window. If the shop takes two weeks to repair your car and your daily limit is $45, Progressive pays up to $630 (14 days × $45) as long as that does not exceed your maximum total limit.
If you choose a rental car that costs more than your daily limit, you pay the difference out of pocket. For example, if your daily limit is $45 and you rent a car that costs $65 per day, you pay the extra $20 per day yourself. Progressive recommends choosing a rental in the same class as your vehicle to avoid overpaying.
What rental reimbursement does not cover
Rental reimbursement only covers repairs that are themselves covered by your collision or comprehensive insurance. If you have a $1,000 deductible on collision coverage and you cause an accident, your collision coverage pays for the repair minus the deductible. Rental reimbursement covers the rental car during that repair. But if you do not have collision coverage at all, rental reimbursement cannot help you, because there is no covered repair to begin with.
Rental reimbursement also does not cover rentals for other reasons — if your car breaks down outside of an insured event, if you want a rental while waiting for parts to arrive, or if you simply want a different car for a day. It covers only the repair period after a claim that Progressive has approved.
The coverage does not apply if you are at fault in an accident but the other driver's insurance is paying for repairs. In that case, the other driver's insurance may cover your rental, but Progressive's rental reimbursement does not kick in because it is not a Progressive claim.
Rental reimbursement versus other ways to cover rental costs
If you do not have rental reimbursement through Progressive, you have other options. Some credit cards offer rental car coverage as a cardholder benefit — check your card's terms to see if it covers collision damage waivers and daily rental costs. Some employers offer rental coverage through their group insurance plans. Some rental car companies offer daily rates low enough that paying out of pocket is affordable.
The trade-off is convenience and certainty. With Progressive's rental reimbursement, you know exactly what you will pay (nothing), and Progressive handles the arrangement with the rental company. Without it, you either rely on a credit card benefit that may have limits or exclusions, or you pay cash and hope to recover it later. For most people, the $3 to $10 monthly cost of rental reimbursement is worth the peace of mind.
When rental reimbursement saves you money
Rental reimbursement is most valuable if you rely on your car for work or daily life and cannot afford to be without transportation for two weeks. If a major repair takes 10 days and your daily limit is $45, Progressive covers up to $450 of rental costs. Paying that out of pocket would be a significant expense on top of your insurance deductible.
It is less valuable if you have a second vehicle at home, if your workplace is within walking distance, or if you can borrow a car from family. In those cases, you may not need a rental at all, and the monthly premium for rental reimbursement is wasted.
The coverage is also more valuable in areas where rental cars are expensive. In a major city where daily rental rates run $60 to $80, a $45 daily limit means you pay the difference. In a smaller town where rentals cost $30 to $40 per day, a $45 limit covers most or all of the cost.
Frequently Asked Questions
Can I use rental reimbursement if my car is totaled?
No. Rental reimbursement covers the rental period while your car is being repaired. If your car is totaled, there is no repair period, so rental reimbursement does not apply. You would need to buy or rent a replacement vehicle on your own while you settle the claim and find a new car.
What if the repair takes longer than my maximum total allows?
Progressive pays up to your maximum total amount, regardless of how long the repair takes. If your maximum is $1,200 and the repair takes four weeks at $45 per day, Progressive pays $1,200 and you pay any rental costs beyond that. You can contact the repair shop to ask for an estimate of how long repairs will take before you choose your daily limit.
Do I have to use a rental car from Progressive's network?
Progressive typically directs you to a rental company in their network, but you can ask about using a different rental company. If you use an out-of-network rental, Progressive may still reimburse you up to your daily limit, but you may have to pay upfront and submit a receipt for reimbursement later. Ask your claims adjuster before you rent.
Can I add rental reimbursement after an accident happens?
No. Rental reimbursement must be on your policy before the accident occurs. If you add it after you file a claim, it will not cover that claim. You can add it at any time for future claims, but there is no coverage for events that already happened.
Does rental reimbursement cover rideshare or car-sharing services?
Rental reimbursement typically covers traditional rental cars only, not rideshare services like Uber or Lyft or car-sharing services like Zipcar. If you want coverage for those services, ask Progressive whether they offer it as a separate option or whether your policy covers them in any way.