{"id":2459,"date":"2023-10-29T13:51:18","date_gmt":"2023-10-29T13:51:18","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=2459"},"modified":"2023-10-29T13:51:20","modified_gmt":"2023-10-29T13:51:20","slug":"primary-insurance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/small-business\/primary-insurance\/","title":{"rendered":"PRIMARY INSURANCE: What Is It & How Does It Work?"},"content":{"rendered":"

Primary and secondary health insurance policies both exist to provide coverage for medical expenses. Common practice dictates that primary insurance be utilized first. The primary insurance carrier is the one who pays your medical bills before any secondary ones. Additionally, the Social Security Administration then determines the primary insurance amount (PIA) Insurance on your credit card for rental cars includes primary and secondary coverage and may assist with vehicle repairs in the event of theft or accident damage. <\/p>

Primary Insurance <\/span><\/h2>

In the event of a medical expense claim, the primary insurer will foot the bill first. This means that when scheduling an appointment or receiving medical care, you will not be able to specify which insurance plan will be used. Check with your primary insurer to make sure they will pay for any medical care you receive. In other words, if your primary insurer does not pay for the service, your secondary insurer may or may not.<\/p>

What is Primary Insurance?<\/span><\/h2>

When something bad happens, the policyholder can turn first to their primary insurance, which will cover them up to a certain dollar amount. A person’s primary insurance policy provides the initial layer of defense.<\/p>

In the event of a claim, the primary insurer is the one responsible for making the initial payment. Having a primary insurance policy is crucial to ensuring financial security in the event of an accident or illness. A single comprehensive insurance plan can provide coverage for numerous types of losses, including those involving people, property, and legal responsibility.<\/p>

In the event of an accident or illness, your primary insurance policy will be responsible for paying the bills before any secondary policies kick in. <\/p>

In most cases, property, liability, and health care coverage will be the focus of your primary insurance policy. Primary insurance is the policy that kicks in to cover a loss before any other policies do. When the primary policy’s coverage is depleted, the excess (also known as secondary) policy kicks in to cover the remaining costs.<\/p>

The most typical type of policy that both individuals and businesses purchase is primary insurance. Primary insurance is the policy that pays out first if the policyholder incurs a loss. Even if additional policies exist, primary insurance will always provide coverage first. Any additional policies would not pay out until the initial coverage limit was exhausted. <\/p>

Credit Card Car Rental Primary Insurance <\/span><\/h2>

Your credit card rental car insurance may help pay for repairs to your rental car if it gets damaged in an accident or is stolen. You can get this insurance in two different types: primary coverage and secondary coverage. In the event of damage to your rental vehicle, the primary rental car coverage will take care of it before your auto insurance kicks in, so you will not have to file a claim with them. <\/p>

At the very least, one premium credit card from many of the bigger banks comes with primary rental car insurance. Many of these cards have annual fees and are only good for people who travel a lot.<\/p>

After your insurance covers the damage to the rental car, your credit card’s secondary coverage kicks in. Secondary coverage can sometimes become primary coverage.<\/p>

Coverage Amounts<\/span><\/h2>

Often, the amount of coverage limits how much it costs to fix or replace a car. When talking about cars, this is usually called their “actual cash value” or their “manufacturer’s original retail price,” which could be $50,000 or $75,000. Loss of use<\/a> fees can be expensive, so the card may cap your total expenses per incident.<\/p>

Credit Card Rental Car Coverage Exclusions<\/span><\/h2>

Carefully peruse the small print of your credit card’s rental car insurance policy to learn exactly what is and is not covered. It is important to read the fine print, as some policies may exclude certain vehicles because of their value or utility. Some exclusions include: <\/p>

#1. Liability insurance is Excluded<\/span><\/h3>

If you cause damage to another vehicle or person’s property while driving a rental car, your credit card’s insurance will not pay for it. In most cases, credit card collision damage waivers will not pay for medical bills incurred by you or anyone else in an accident. To be sure, consult your auto insurance policy or get in touch with your service provider. <\/p>

#2. Some Countries are Excluded<\/span><\/h3>

Different cards and issuers have different lists of countries that are not allowed. Nonetheless, the most frequent outliers are the aforementioned countries as well as Australia, Israel, Italy, Ireland, Jamaica, Northern Ireland, and New Zealand. Call your card’s customer service number before leaving to make sure your planned destination is covered when renting a car outside the US. Rentals in countries subject to U.S. economic sanctions, such as Cuba, are also likely not covered.<\/p>

How to Make a Claim on Credit Card Car Rental Insurance<\/span><\/h2>

In many ways, the claims process is the same as it is with traditional auto insurance.<\/p>

#1. Contact the Car Rental Company About Your Claim\u00a0<\/span><\/h3>

Contact the claims administrator immediately, but no later than 45 days or as stated in your card’s benefits booklet. The company will send you follow-up instructions that include paperwork. If secondary damage is all that your credit card will pay for, you should submit a claim as soon as possible with your auto insurance. This is because the credit card claims process might not start until you provide evidence of what your insurance policy covers. Time may be limited because you may still need to submit your paperwork by the card issuer’s deadline.<\/p>

#2. Prove Your Financial Loss<\/span><\/h3>

When an accident occurs, you will receive a claim form to fill out and send back within 60\u201390 days. This paperwork may include: <\/p>