Primary coverage means a card's insurance pays first in a claim; secondary coverage only pays what another policy has not already covered.
Primary coverage means a card’s insurance pays first in a claim; secondary coverage only pays what another policy has not already covered.
Also called: Secondary coverage.
How it works#
The distinction decides how useful the protection really is. With secondary coverage the loss must be reported to your own insurer first, which can cost a no-claims discount and lengthen the process. Primary coverage skips that step entirely. Which applies is written in the card’s insurance terms, not in the marketing material for the card.
Not to be confused with#
Primary coverage is not the same as full coverage: even a primary policy has exclusions, caps and deductibles.
In German#
The German term is Primäre Deckung. German version of this term
Related terms#
- Collision damage waiver: A collision damage waiver is the rental company’s promise not to pursue the renter for damage to the vehicle, usually subject to a deductible.
- Deductible: A deductible is the amount the insured person pays on every claim before the insurer covers the remainder.
- Trip delay insurance: Trip delay insurance is a card benefit that reimburses necessary extra costs during a long delay or an interrupted trip, such as hotels and meals.
Articles that use this term#
TopicEvery article and term onCards and money.