For Immediate Release
Contact: Mike Morrison
Cindy Gittelsohn
Jericho Communications
212/645-6900

STUDY SHOWS ONE OF EVERY FIVE CAR RENTERS
ALWAYS BUYS THE DAMAGE WAIVERS AT THE COUNTER

Renting A Car This Summer?
Your Personal Auto Policy May Provide the Coverage You Need
Here’s What You Need to Know

MAYFIELD VILLAGE, OHIO (May 22, 2002)—Deciding whether or not to buy damage “waivers” at the rental car counter can put people at a crossroads. Some err on the side of caution and buy the waivers without realizing they may already be covered by their personal auto insurance policy. Since waivers can sometimes double the cost of the vehicle rental, knowing what to do when you reach the rental car counter is important.

In a recent survey of consumers who have rented a car in the past three years, 19 percent said they always buy the rental company-offered “waivers” at the rental car counter and another 19 percent said they sometimes buy them. Reasons for buying waivers range from not knowing if personal auto policies provide appropriate coverage (24 percent) to feeling pressured by the rental car counter agent (eight percent). Progressive (NYSE:PGR), whose companies comprise the country's fourth largest auto insurance group, conducted the survey.

Waivers are sold by rental car companies and waive the company’s right to collect for damages from the renter. These waivers may cover liability (damage you cause to other people or property), collision (damage you cause to the vehicle you rented) and comprehensive claims (stolen vehicle, weather-related damage like that caused by hail and flooding and collisions with animals).
The bottom line: Rental car damage waivers can nearly double the cost of the vehicle rental. Waivers can cost between $7 and $25 per day, depending upon the company, vehicle, and type of waiver purchased.

John Barbagallo, director of product development, Progressive, said: “If you have ‘full coverage’ on your personal automobile (comprehensive, collision and liability coverages (bodily injury/property damage)), you should check with your agent or your company to see if that coverage extends to a rental vehicle. Chances are, it does and if you’re involved in an accident with a rental car, in most cases you would be liable only for your deductible on comprehensive and collision coverages, just as you would be in your personal vehicle.”

“It’s important that consumers understand what they’re already paying for and how it applies to a rental car. That way, they can make a more informed decision about what they may or may not need to buy at the rental counter,” said Barbagallo.

Other findings of the survey:

* Sixty-three (63) percent of responders said they bought waivers because they wanted extra coverage.
* Of those car renters who said they buy waivers, nine (9) percent bought them when they traveled on business, 45 percent bought them when they traveled for pleasure and 41 percent bought them for both business and pleasure travel.
* Eighteen (18) percent of both men and women said they always buy rental car damage waivers at the rental car counter.
* Younger respondents were more likely than older respondents to purchase waivers at the rental car counter. Respondents in the 18 to 24 age group were most likely to purchase waivers (58 percent), followed by the 25 to 34 age group (42 percent), 35 to 54 age group (35 percent) and 55 to 64 age group (27 percent).
* The majority of 55 to 64 year olds reported never having bought rental car waivers (70 percent).
* When asked where they would go for information on how their own auto insurance policy covers them in a rental car, the majority (64 percent) said they would ask their insurance agent, while eight (8) percent said they would read their policy papers.

Summer Car Rental Tips

Before you rent a car this summer:

1. Check with your insurance agent or company. Your first step should be to find out if the coverage you have on your personal vehicle will provide protection for you in a rental car.
2. Check with your credit card company. Some credit card companies provide coverage at no charge if you use their card to charge the cost of the rental.
3. Take your personal auto insurance policy and details of your coverages with you to the rental car counter. You may be asked a question that these papers can answer—or, if you’re in doubt, you’ll have your agent’s name and phone number readily available.

The Progressive group of insurance companies, in business since 1937, ranks fourth in the nation for auto insurance and provides drivers with competitive rates and 24/7 service. The companies offer insurance by phone at 1-800-PROGRESSIVE, online at progressive.com and through more than 30,000 independent insurance agencies. The Progressive Corporation, the holding company, has headquarters in Mayfield Village, Ohio and is publicly traded at NYSE:PGR. More information can be found at www.progressive.com.