How Does Secondary Auto Insurance Coverage Work?

Secondary auto insurance coverage can be thought of as additional layer of protection available to drivers who rent a vehicle. A driver who has car insurance coverage in place may be covered while driving a rented car in the U.S. but this protection may not follow him or her if the car is being driven into Canada or Mexico. Secondary car insurance offered by a credit card company may provide some protection in this situation, as long as the driver uses the card to pay for the rental.

A licensed driver who doesn’t own a car will want to consider buying the insurance coverage offered by the car rental agency. Each customer is presented with this option when the rental vehicle is being picked up. If the customer agrees to the terms of the coverage, it becomes the primary insurance policy if a loss occurs. The auto insurance offered by the credit card company becomes the secondary insurance in this instance.

Before relying on the rental car insurance coverage offered by a credit card issuer, contact the company to find out exactly what types of losses are covered under the plan. The consumer can use this information to make an informed choice about whether this type of secondary auto insurance coverage is going to provide enough protection when combined with the primary coverage offered by the driver’s existing policy or one offered by the car rental company.