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2002 TL Type-S

Progressive Rental Car Insurance: Do I Need It? (2023)

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  • Progressive rental car insurance is a good idea if you don’t have a personal insurance policy but are renting a car.
  • You’ll also need rental car insurance if you’re renting a car outside of the U.S. or Canada, and there are often strict rules about this.
  • State Farm and GEICO are worth considering along with Progressive rental car insurance for their reasonable rates and easy-to-get coverage.

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The majority of drivers don’t need to pick up a specific Progressive rental car insurance policy, but there are certain exceptions. The personal insurance plan you have through Progressive will likely cover your rental car while you’re driving it, protecting you from financial consequences in the event of an accident.

Those without a personal insurance policy will probably need to buy Progressive rental car insurance to legally get a vehicle. We’ve ranked the best auto insurance companies in the industry to determine which ones will suit your needs when getting a rental vehicle.

Do I Need Rental Car Insurance?

Generally speaking, those with Progressive insurance are covered for their personal vehicles and for any rental cars they use. Many credit card companies also cover rental cars that are purchased using their cards, though exact details depend on the provider.

There are many times when you may still need Progressive rental car insurance, though. We’ll run through a few below that apply to those with personal coverage and those without.

You Don’t Have Personal Car Insurance

This one’s pretty obvious. If you lack auto insurance because you don’t own a vehicle, you’ll absolutely need to get Progressive rental car insurance or a policy from another provider. Otherwise, it’s illegal to drive a rental car and you likely won’t be able to take possession of it.

You Have a High-Deductible Personal Policy

If your existing auto policy has a high deductible for claims, it may be smart to get Progressive rental car insurance. That’s because most rental car coverage plans have low or no deductibles, making it far more affordable after an at-fault accident.

You Have an Extremely Limited Policy

Some drivers may prefer to have additional coverage on a rental car versus on their personal vehicle. After all, it’s often easier to end up in an accident when you’re driving a different model in an unfamiliar region. If this situation worries you or if you have a bad driving record, consider Progressive rental car insurance.

Many motorists already have extras on their personal auto insurance policy such as comprehensive coverage, personal injury protection and gap insurance. If you have plenty of coverage and high policy limits, it’s probably not worth getting additional protection.

You’re Traveling Internationally

International travel is an entirely different story from domestic in terms of rental car insurance. While most car policies cover vehicles while they’re in the U.S. or Canada, that’s not true of other countries. You’ll absolutely need to pick up rental car insurance when going elsewhere.

While Progressive rental car insurance isn’t available in Mexico, the company works with an insurance broker known as Mexpro to make sure that customers get adequate coverage. It’s essential that you have car insurance specifically for Mexico, as those without domestic coverage often face steep fines and even jail time.

Progressive rental car insurance isn’t available at all in other countries. Make sure to look up foreign auto insurers if you’re renting a car in a country other than Canada or Mexico.

Types of Rental Car Insurance

The types of Progressive rental car insurance are somewhat similar to those for personal coverage, but you’ll notice some differences. We’ll go through a few types of cheap car insurance coverage that are available on most rentals.

Note that rental car reimbursement coverage refers to a policy add-on where Progressive offers a temporary replacement vehicle to those whose cars suffer a mechanical breakdown. In other words, it’s entirely unrelated to Progressive rental car insurance.

Liability Insurance

Simply put, liability insurance for a rental vehicle takes care of damages to other people, vehicles or property when you cause an accident. Rental car liability insurance does not cover the rented vehicle itself or the passengers riding in it. While it’s required that all vehicles have liability coverage on them, you’ll find that not all rental agencies automatically include it.

Even if your auto insurance provider or credit card company includes liability coverage, you may want to purchase supplemental liability insurance for a rental car. While this isn’t necessary, it could offer peace of mind to certain drivers who’d prefer full coverage auto insurance.

Personal Effects Coverage

This coverage type pertains to items such as luggage or other valuables that are stolen from a rental car. Read the fine print about what’s protected by personal effects coverage, as providers may exclude certain pricey possessions from their plans. While this type of rental car insurance isn’t necessary, it might be helpful if you’re going to a city with a high number of car break-ins.

Personal Accident Insurance

Personal accident insurance takes care of you and your rental car’s passengers after an accident. It’s common practice among U.S. rental car companies to bundle personal effects coverage with personal accident insurance. You’ll receive medical payments along with death and ambulance benefits if you pick up this type of protection.

Loss/Collision Damage Waiver

A collision or loss damage waiver protects you from replacing a rental car if it gets damaged by vandalism or is stolen. Car insurance providers may choose to leave out some aspects of this policy, though, such as damage to the windshield or tires. You may need to pay a deductible even if you add a collision damage waiver to your Progressive rental car insurance policy.

Note that the collision damage waiver works similarly to how collision coverage and comprehensive coverage are on personal vehicles. This optional coverage type takes care of property damage to your rental car rather than paying off medical bills after a covered accident.

Our Recommendations for Auto Insurance

It’s worth checking out GEICO and State Farm while you consider a Progressive rental car insurance policy. Each of these providers has a comparable rental car coverage plan, but you may be able to find your best option by comparing car insurance quotes.

Compare Car Insurance Rates

Enter your zip code and answer a few simple questions to find the best rates in your area.

GEICO: Best Discount Selection

Those who choose GEICO for rental car coverage will receive services from a company with a strong reputation and excellent financial health. The provider is known for its array of discounts, which can save motorists money if they choose GEICO for their personal auto insurance. Consider bundling homeowners or renters insurance with other coverage types from GEICO and you’ll likely find cheaper rates.

Keep reading: GEICO car insurance review

State Farm: Best Overall

State Farm is known for its excellent customer service and for the ease with which policyholders can get in touch with local insurance agents. In addition to offering the standard rental car insurance varieties, State Farm has extra types of coverage such as roadside assistance and towing services that many drivers find valuable.

Keep reading: State Farm car insurance review

FAQ: Progressive Rental Car Insurance

Does Progressive auto insurance cover rental cars in Canada?

Any Progressive auto insurance policy purchased in the U.S. will also work in Canada with the same coverage limits. This applies to both personal cars and rental vehicles. While you may not need to notify Progressive of your trip to Canada, it’s wise to do so before heading out.

Will Progressive drop me after an accident?

While Progressive says that it won’t increase your premiums after one car accident, you may see an increase during your next enrollment period. Those who have been with Progressive for a certain amount of time may be eligible for accident forgiveness.

Should I get rental car insurance?

You should get rental car insurance if you don’t have a personal policy, if you want to increase your current coverage while on the road or if you’re traveling internationally. For others, your personal auto insurer or credit card company may already cover rental car insurance.

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.

  • Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
  • Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
  • Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
  • Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
  • Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
  • Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.