When a renter's primary auto insurance does not cover all damages from an incident involving a rental vehicle, the renter's secondary auto insurance steps in to fill the gap. The secondary policy typically covers the remaining deductible and any excess liability that the primary policy leaves uncovered. This arrangement applies only when the renter has a personal auto policy that includes a secondary coverage clause and when the primary insurer has already paid its portion of the claim.
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Primary vs. Secondary Coverage
The primary policy is the first line of defense. It pays for damages up to its limits, including liability, collision, and comprehensive coverage. Once those limits are exhausted, the secondary policy may kick in if it contains the appropriate coverage types.
Conditions for Secondary Coverage to Apply
- Rental company must not have waived secondary coverage.
- Renter's personal auto policy must list the rental vehicle as covered under secondary insurance.
- The claim must be filed within the time frame specified by the primary insurer.
Typical Coverage Limits
| Coverage Type | Primary Policy Limit | Secondary Policy Limit |
|---|---|---|
| Liability | $100,000 | $50,000 |
| Collision | $2,500 deductible | Full payment of remaining damages |
How to File a Secondary Claim
After the primary insurer settles its portion, the renter should submit the claim to their secondary insurer with the primary insurer's payment documentation and the rental company's incident report. The secondary insurer will review the claim and, if approved, pay the remaining balance.
When Secondary Coverage Is Not Available
If the renter lacks a secondary auto policy or if the policy excludes rental vehicles, the renter is responsible for the full amount not covered by the primary insurance. Many renters choose to purchase additional coverage through the rental company to avoid this scenario.