Credit Cards Secondary Car Insurances?

[sladesurfer]

I think i know the answer but let's ask anyway. If I don't have any car insurance, will the secondary car insurance from a credit card becomes Primary insurance? Renting a car of course 

[wasCB14]

Generally, yes. Secondary in unpopular here because most people own cars and buy car insurance that applies not just to their own car but also when they are driving a rental. With no primary at all, secondary coverage becomes primary.

If you have some sort of umbrella policy...which I believe is often a sort of add-on to a homeowner's policy...then it might be more complicated. That would be beyond my level of understanding, though.

*ETA: Many policies on credit cards are secondary within the USA but become primary outside the USA. Definitely read the fine print.

[coldfusion]

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@wasCB14 wrote:

*ETA: Many policies on credit cards are secondary within the USA but become primary outside the USA. Definitely read the fine print.

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Yep. There are also a few countries (Jamaica, Israel, Ireland & N. Ireland) that you need to dig really deep before you travel to make sure you have coverage. 

[UpperNwGuy]

I am guessing that the policy document (for the credit card's secondary insurance) will have a section that addresses the situation of no primary insurance.

I don't trust the credit cards enough to rely exclusively upon them.  If I were to sell my car and get rid of my auto policy, I would be sure to buy some kind of policy to cover car rentals.

[coreysw12]

Does secondary coverage require you to decline the CDW from the rental car company, or is it usually just primary coverage that requires that?

I ask because sometimes secondary coverage by itself may have limits less than you want/need, especially if you do not have a personal car insurance policy to lessen the blow.

[wasCB14]

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@coldfusion wrote:

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@wasCB14 wrote:

*ETA: Many policies on credit cards are secondary within the USA but become primary outside the USA. Definitely read the fine print.

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Yep. There are also a few countries (Jamaica, Israel, Ireland & N. Ireland) that you need to dig really deep before you travel to make sure you have coverage. 

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Yes. Some cards have "exception" countries. The exceptions vary by card and change over time.

[wasCB14]

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@UpperNwGuy wrote:

I am guessing that the policy document (for the credit card's secondary insurance) will have a section that addresses the situation of no primary insurance.

I don't trust the credit cards enough to rely exclusively upon them.  If I were to sell my car and get rid of my auto policy, I would be sure to buy some kind of policy to cover car rentals.

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I live in CA and can get Amex primary coverage at a very reasonable price. I do not rent cars often, so a per-rental fee of $15.95 (or $17.95 for higher limits) is better than my paying a separate AF to Chase. FL resident rates are even lower. Elsewhere people will pay $19.95 or $24.95.

A while back there was some small CU that was a FOTM card. Many people got excited about the idea of primary coverage with no AF.

However...

1. No one could locate the benefit guide with the actual details.

2. The CU required paper applications to get the card. That hardly suggests they would handle benefit claims efficiently.

[wasCB14]

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@coreysw12 wrote:

Does secondary coverage require you to decline the CDW from the rental car company, or is it usually just primary coverage that requires that?

I ask because sometimes secondary coverage by itself may have limits less than you want/need, especially if you do not have a personal car insurance policy to lessen the blow.

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In the case of Chase freedom:

During this transaction, review the Rental Car Agreement and

decline the rental company’s collision damage waiver (CDW/LDW)

option or a similar provision. Accepting this coverage will cancel

out Your benefit. If the rental company insists that You purchase

their insurance or collision damage waiver, call the Benefit

Administrator for assistance.

https://www.chasebenefits.com/freedom

[coreysw12]

^ Good info, thanks.

I actually did have a US rental car company insist that I buy their coverage once. They claimed that the CSP I was using at the time did not offer the minimum coverage they required. They were completely unwaivering with this stance until I finally threatened to walk out and use a different company - only then did they decide to "give me a one-time exemption" . Moral of that story is to be sure to read up on your card's coverage in advance so that you have all the facts before you rent a car.

[sladesurfer]

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@wasCB14 wrote:

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@UpperNwGuy wrote:

I am guessing that the policy document (for the credit card's secondary insurance) will have a section that addresses the situation of no primary insurance.

I don't trust the credit cards enough to rely exclusively upon them.  If I were to sell my car and get rid of my auto policy, I would be sure to buy some kind of policy to cover car rentals.

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I live in CA and can get Amex primary coverage at a very reasonable price. I do not rent cars often, so a per-rental fee of $15.95 (or $17.95 for higher limits) is better than my paying a separate AF to Chase. FL resident rates are even lower. Elsewhere people will pay $19.95 or $24.95.

A while back there was some small CU that was a FOTM card. Many people got excited about the idea of primary coverage with no AF.

However...

1. No one could locate the benefit guide with the actual details.

2. The CU required paper applications to get the card. That hardly suggests they would handle benefit claims efficiently.

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Does Amex Premium Car Insurance cover "loss of use"?