Jane Dotson
Secondary auto insurance is a type of insurance that you can use to cover your rental car. It is often available as a credit card benefit. If you are in an accident with a rental car and have secondary coverage, you will need to file a claim with your personal auto insurance policy provider first. Your secondary auto insurance will then cover what your personal policy won't, albeit with some limitations.
| Characteristics | Values |
|---|---|
| Type of insurance | Secondary auto insurance is a type of rental car insurance. |
| Who offers it | Credit card companies |
| When is it useful | When your primary insurance does not cover certain things, such as deductibles, or when damages exceed your policy limits |
| What does it cover | Out-of-pocket deductible, damages not covered by primary insurance, claim denial, amounts in excess of limits, travel abroad |
| What does it not cover | Liability insurance, luxury cars and other high-risk vehicles |
What You'll Learn
Secondary auto insurance is a type of rental car insurance
When renting a car, you will need to decide how to insure it. Secondary auto insurance is a type of rental car insurance that you can use to cover your rental car. It is often available as a credit card benefit. If you are in an accident in a rental car, your secondary car insurance coverage will pay for the damages. If the auto accident meets policy limits, then your personal insurance company will pay the rest.
Secondary car insurance coverage usually comes with a deductible, which is what you will have to pay out of pocket before the insurance company will cover any of your damages. It also often has payment limitations, meaning that it will only cover a portion of the damages. Because of this, secondary car insurance is best considered as a backup. If it doesn't cover all of your damages, you will need to turn to your personal insurance company, which could lead to an increase in your monthly rates.
Most credit cards with rental insurance offer secondary insurance. While this is a good way to save money on your rental, it may not offer you enough payment if you're in an accident. When deciding which insurance to use, it is important to consider who will cover your damages if you're in an accident, and how much they will cover.
Some credit cards offer primary rental car insurance coverage, which means it pays out first, and you don't have to get your own insurer involved. Primary coverage is better, but few cards offer it. After an accident, primary coverage pays first, allowing you to bypass your personal auto insurance and avoid paying a deductible and potentially seeing your premiums rise.
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It's offered by credit card companies
Secondary Auto Insurance Offered by Credit Card Companies
Secondary auto insurance is a type of insurance that you can use to cover your rental car. It is often available as a credit card benefit. If you are in an accident in a rental car, your secondary auto insurance will pay for the damages. If the accident meets policy limits, your personal insurance company will pay the rest.
Secondary auto insurance covers damage to the rental vehicle caused by a collision, vehicle theft (not including personal belongings), and loss-of-use charges imposed by the car rental agency while the vehicle is being repaired or replaced. It does not cover personal injuries or property damage caused in an accident.
Secondary auto insurance usually comes with a deductible, which is an out-of-pocket expense that must be paid before the insurance company will cover any damages. It also often has payment limitations, meaning it will only cover a portion of the damages. Additionally, there may be exclusions for certain types of vehicles and countries, as well as caps on rental periods and total coverage.
Some credit card companies specify on the card's landing page whether the rental car insurance is a secondary or primary policy. You can also check the benefits guide provided by your credit card company, which should outline the coverage and limitations of the policy. Contacting the credit card company directly is also an option to clarify what type of coverage is offered and what limitations may apply.
Secondary auto insurance offered by credit card companies can be useful if you are renting a car and do not have primary auto insurance or if your primary insurance does not cover rental cars. It can provide some peace of mind and protection in the event of an accident, but it is important to understand the limitations of the coverage.
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It covers what other insurance won't
Secondary auto insurance is a type of insurance that covers what other insurance won't. It is often available as a credit card benefit and is used to cover rental cars. If you are in an accident in a rental car, your secondary car insurance coverage will pay for the damages, but only if your personal auto insurance policy won't. This means that, in the event of an accident, you will first need to file a claim with your personal auto insurance policy provider. Your credit card's coverage will then cover what your personal policy won't, but with some limitations.
Secondary car insurance typically covers:
- Damage to the vehicle caused by a collision
- Vehicle theft (but not personal belongings)
- Loss-of-use charges imposed by the car rental agency while the vehicle is being repaired or replaced
It is important to note that secondary car insurance does not include protection for personal injuries or property damage caused in an accident. It also does not cover your insurance policy's deductible, which is what you will have to pay out of pocket before the insurance company will cover any of your damages.
In some cases, secondary car insurance can be converted to primary car insurance, which means it will cover damages before your personal auto insurance policy. This can happen if you don't have a personal auto insurance policy or if you are travelling outside of your coverage area and your personal policy doesn't apply.
When deciding whether to opt for secondary car insurance, it is important to consider the limitations of your personal auto insurance policy and whether it will provide sufficient coverage in the event of an accident.
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It's a backup to primary insurance or your personal auto policy
Secondary auto insurance is a backup to your primary insurance or personal auto policy. It is a type of rental car insurance offered by credit card companies to pay for certain damages in an accident while driving a rented vehicle. It is not liability insurance but rather a backup insurance that only comes into effect if other insurance runs out or does not cover the accident.
If you have a personal liability coverage car insurance policy, it likely extends to your rental car, but this may not be a sufficient level of coverage. In this case, secondary auto insurance can be used to supplement your primary auto insurance policy. You will first need to file a claim with your personal auto insurance policy provider, and then your credit card's secondary coverage will cover what your personal policy won't, albeit with some limitations.
Secondary auto insurance can be useful if you have a high deductible on your personal auto policy, have recently filed multiple claims in a short period, or want to avoid triggering a premium hike from another potential claim. However, if you have full coverage (liability, comprehensive, and collision) with your personal auto policy, you may not need secondary auto insurance.
It's important to note that secondary auto insurance has some exclusions and limitations. It does not cover personal injuries or property damage caused in an accident, and it may not cover certain types of vehicles, such as luxury cars or trucks. Additionally, there may be caps on rental periods and total coverage amounts.
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It's important to understand the difference between primary and secondary insurance
When renting a car, it's important to understand the difference between primary and secondary insurance. This is because the type of insurance you have will determine how much you'll need to pay out of pocket in the event of an accident.
Secondary car insurance is a type of protection for rental cars that is typically offered as a credit card benefit. It acts as a supplement to your primary auto insurance policy, if you have one. If you have secondary coverage, you'll need to first file a claim with your personal auto insurance policy provider. Your credit card's coverage will then cover what your personal policy won't, but there may be limitations. For example, secondary coverage usually involves a deductible, so you'll have to pay a portion of the cost of any damage you incur. There may also be limits and restrictions on secondary coverage, which could result in the insurance failing to cover the full amount of the damage.
Primary car insurance coverage, on the other hand, covers damages in a rental vehicle before accessing any other secondary types of auto insurance. If you're in an accident, you will file a claim with the primary insurance provider before your personal insurance. One of the biggest benefits of this is that your insurance premium won't increase because of the accident. Primary car insurance coverage covers damages from an accident, as well as theft or vandalism. However, very few credit card companies offer primary car coverage. When you opt for the insurance offered by the rental company, this is usually a form of primary car insurance.
In summary, the main difference between primary and secondary car insurance is that secondary insurance acts as a supplement to your primary insurance, while primary insurance covers damages before accessing any other types of insurance. It's important to carefully review the terms and conditions of your credit card's rental car insurance coverage to understand what is and isn't covered.
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Frequently asked questions
Secondary auto insurance is a type of insurance that covers rental cars and is often provided as a benefit by credit card companies. It acts as a supplement to your primary auto insurance policy and covers any damages that your primary insurance doesn't.
If you're in an accident with a rental car and have secondary coverage, you first need to file a claim with your primary auto insurance provider. The secondary coverage will then kick in to cover any remaining costs that your primary insurance doesn't, but usually with some limitations.
Secondary auto insurance typically covers damage to the rental vehicle caused by a collision, theft of the vehicle (not including personal belongings), and loss-of-use charges imposed by the rental company while the vehicle is being repaired or replaced.
If you already have full coverage with your personal auto insurance policy, you may not need secondary auto insurance. However, if you have a high deductible, have filed multiple claims recently, or want to avoid the risk of triggering a premium hike, secondary auto insurance can provide additional protection.
You can check the card's marketing page, review the guide to benefits provided with the card, or contact customer service to find out if your credit card offers secondary auto insurance coverage.
