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Progressive Loan/lease Payoff Coverage

If your vehicle is stolen or totaled, loan/lease payoff coverage from Progressive can help pay the difference between your vehicle's current value and what you owe on your loan or lease, up to your coverage limit. At Progressive, you can add loan/lease payoff coverage to your policy when you carry both comprehensive and collision coverage.

Example:

Your vehicle is worth $12,000 and is totaled in an accident, but you owe $14,000 on your loan. Your collision coverage pays out $12,000 (minus your deductible), while your loan/lease coverage pays out the $2,000 difference to help cover your remaining loan balance.

Common questions about Progressive's loan/lease payoff coverage

How does Progressive's loan/lease payoff coverage work?

If your vehicle is stolen or totaled in an accident and you have loan/lease payoff coverage, we'll pay the difference between your vehicle's value and what you owe on it, up to 25% of your vehicle's value (though the exact limit can vary by state). If your claim is approved, we'll send the payment to your loan or lease provider. Note that loan/lease payoff doesn't cover additional charges related to your loan or lease, such as excess mileage fees.

Do I need loan/lease payoff on my Progressive policy?

Loan/lease payoff isn't legally required by any state. However, depending on the terms of your loan or lease, your financing institution may require it. Beyond that, it's a question of your finances: if you owe more on your loan than the car is worth, it's something you may want to consider.

Is loan/lease payoff coverage at Progressive the same thing as gap insurance?

No. While both gap insurance and loan/lease payoff coverage can help pay off a car loan or lease, they may have different requirements and payout limits. At Progressive, only loan/lease payoff coverage is offered.