Primary vs. secondary rental car insurance
Before renting a car with a credit card, you should take a close look at whether your card offers primary or secondary car rental insurance. By and large, this is one of the most important details of credit card auto rental coverage because:
- Primary auto rental coverage means you can use it in place of your own insurance. This means that, if you’re in an accident or experience a loss, you aren’t required to notify your personal auto insurance company.
- Secondary auto rental coverage kicks in after you exhaust coverage limits offered through your own insurance. This means you’ll need to file a claim with your own auto insurance coverage first.
Some great credit cards with auto rental coverage don’t offer primary insurance for free, or only offer primary coverage if you don’t have car insurance. Even if the card offers primary coverage, you’ll want to read over the fine print to make sure your situation is covered. For example, some issuers may only offer secondary coverage if you’re using a business card to rent a car for personal reasons.