Quick Summary:
- Primary cover pays first, reducing upfront costs and admin.
- Secondary cover pays after another policy, usually your UK insurance.
- Credit-card cover is often secondary, requiring extra documents and time.
- Check deductibles, excluded drivers, and claims steps before collecting keys.
If you are hiring a car in the USA as a UK traveller, the words “primary” and “secondary” are not marketing fluff, they describe who pays first when something goes wrong. That single detail changes how quickly a claim is handled, what paperwork you need, and whether you might have to pay a large amount up front and claim it back later.
This guide explains primary versus secondary car-hire insurance in plain terms, focusing on the practical differences UK renters notice most: claims handling, forms and evidence, and out-of-pocket costs. For general trip planning and the basics of car hire across the country, start with car hire in the United States.
What “primary” and “secondary” actually mean
Primary cover is the policy that responds first to a claim. If your rental car is damaged or stolen, the primary insurer is the first point of contact and the first payer, up to its limits and subject to any excess.
Secondary cover sits behind another policy. It only pays after the primary policy has paid, or it may reimburse costs that the primary policy does not cover, such as an excess, loss of use, or admin fees, depending on the wording.
In a car hire context, the “other policy” could be the rental company’s protection package, a standalone travel insurance policy, or a credit card benefit. Which one counts as primary is determined by the contract terms, not by what feels logical at the counter.
Why this matters for UK renters in the USA
In the United States, it is common to see damage costs itemised in ways UK renters may not expect, including repair costs, towing, storage, appraisal, and “loss of use” charges for the time the vehicle is unavailable. When your cover is secondary, you may need to pay first and seek reimbursement later. That can mean a large temporary charge on your payment card.
Primary cover tends to reduce that cashflow stress and can streamline who you deal with. Secondary cover can still be valuable, but it often increases the number of steps and documents required to get money back.
How claims handling differs in real life
With primary cover, you usually report the incident to the rental company and the primary insurer, then follow their process. The insurer may liaise with the rental company directly, and payment typically goes to the rental company or repairer. You still may have an excess, but the claim path is more direct.
With secondary cover, you often must open a claim with the primary payer first, wait for their settlement documents, and only then submit a second claim for what remains. For UK renters, the primary payer may be your personal motor insurer at home (if it covers rentals abroad, which many do not), the rental company’s own protection, or another benefit you hold.
Secondary cover claims can take longer because the secondary insurer generally asks for proof that the primary payer has paid, declined, or limited payment. If the primary payer is a third party, delays are common while you collect letters, final invoices, and settlement statements.
Paperwork, what you will be asked to provide
Whether cover is primary or secondary, you should expect to supply documentation after an incident. The difference is volume and sequencing.
Typical documents for primary cover claims include the rental agreement, incident report, photos, police report if required, and repair estimate or final invoice. The insurer may request a damage report from the rental company and sometimes proof of payment for any excess.
Typical documents for secondary cover claims include everything above plus the primary payer’s claim reference, settlement letter, itemised payment breakdown, and sometimes proof the primary policy was in force. If a credit card benefit is involved, you may also need statements showing the rental was paid with that card and evidence that you declined the rental company’s collision damage waiver, if required by the benefit terms.
The practical implication is simple: secondary cover often means you become the “project manager” for chasing paperwork from the rental company and the first insurer, then forwarding it on.
Out-of-pocket costs, deposits, and temporary charges
Even with good cover, rental companies commonly place a security deposit or authorisation hold on your payment card. However, the amount you might have to pay after an incident can differ substantially.
Primary cover can limit upfront spending to your excess and any immediate costs that are explicitly excluded. In some setups, the insurer pays the rental company directly, reducing the chance you will need to float the full repair bill.
Secondary cover frequently means you could be charged first by the rental company, then reimbursed later. That is especially relevant for UK renters using cards with limited available credit, or travelling with multiple drivers where a claim can become more complex.
When comparing vehicles and suppliers, it can help to understand what protection is commonly offered by major brands. If you are looking at specific providers, you can review background information via Alamo car rental in the United States or National car rental in the United States, then focus on the insurance terms attached to your chosen rate.
Common sources of primary and secondary cover
1) Rental company protection products
Depending on what is included in your rate, the rental company’s collision damage waiver style product may operate in a primary-like way for vehicle damage, because you handle the issue directly with the rental company and their administrator. That can be simpler at the scene of an incident. You still need to check exclusions, such as unauthorised drivers, off-road use, or intoxication.
2) Standalone travel insurance add-ons
Some travel insurers offer “car hire excess” style cover which is frequently secondary, reimbursing you for the excess and fees you were charged by the rental company. These products can be good value, but you should expect to pay the rental company first and then claim it back.
3) Credit card benefits
Many card benefits are secondary to other insurance. They can work well, but you must follow the conditions carefully, for example paying for the rental on the card, listing the correct drivers, and sometimes declining certain rental company cover. The document burden tends to be heavier, and timelines can be slower than dealing with the rental company directly.
4) Personal motor insurance
UK motor insurance policies sometimes include limited overseas rental coverage, but it is not the norm, and the USA may be excluded. If it applies, it might be treated as primary, but you must confirm in writing before relying on it.
How it affects liability and third-party claims
Primary versus secondary language is most often discussed for damage to the rental car, but UK renters should also think about liability, which covers injury or damage to others. In the USA, liability limits and legal exposure can be very different from what you are used to.
Liability coverage may be provided by the rental company, by a separate policy you buy, or by another insurer. The “primary” question still matters because it affects who handles negotiations and defence if a third-party claim is made. If you are unsure, ask for the liability limits and who provides the cover, then keep that confirmation with your rental documents.
Scenarios, what changes between primary and secondary
Minor scrape in a car park
With primary cover, you typically file a report and let the primary payer handle costs above your excess. With secondary cover, you may be charged by the rental company, then collect invoices and reimbursement documents.
Windscreen crack from road debris
Some policies treat glass differently, with specific exclusions or separate excess. Primary cover can still leave you paying for glass if excluded. Secondary excess reimbursement may help, but only if glass is included in the reimbursement wording.
Theft or total loss
This is where secondary cover can become financially stressful. You may face a large charge while value and fees are finalised, and you must then pursue reimbursement. Primary cover can reduce the number of parties and shorten the chain of approvals.
Key terms to check before you pick up the car
Excess or deductible, confirm the amount and whether it changes by location or vehicle class.
Loss of use, check whether the policy covers the rental company’s loss of use charges.
Administrative and appraisal fees, these can be charged after an incident and may or may not be covered.
Authorised drivers, only named and permitted drivers are typically covered.
Geographic restrictions, confirm where you can drive, especially near borders.
Incident requirements, some policies require prompt notification and police reports for theft or vandalism.
If you are choosing a larger vehicle for a family road trip, keep in mind that higher vehicle values can mean higher potential charges. It can be useful to compare options like SUV rental in the United States versus a standard car, then align insurance limits and excess with that choice.
Practical steps to reduce hassle if something happens
Save your documents from day one, including the rental agreement, check-out condition report, and any emails showing what coverage is included.
Take date-stamped photos of all sides, wheels, and glass at pick-up and drop-off, plus the fuel gauge and mileage.
Use one payment card consistently for the rental and any incident charges, to make later evidence easier.
Report incidents immediately to the rental company and follow local rules, including police reports when required.
Ask for itemised invoices and final settlement letters, especially if you will be claiming on secondary cover.
For broader planning, including supplier and vehicle category comparisons for the United Estates, the Hola overview pages for car rental in the United States can help you understand what is typically offered across locations and seasons.
So which is better, primary or secondary?
Primary cover is usually simpler at claim time because it pays first and can reduce your need to front large costs. Secondary cover can still be worthwhile, especially when it reimburses an excess you would otherwise lose, but it tends to add steps and paperwork.
For UK renters, the most important takeaway is to match the cover type to your tolerance for admin and temporary card charges. If you would struggle to pay a large amount up front, prioritise arrangements where the main cover responds as primary. If you are comfortable with reimbursement claims and want to reduce the cost of included protection, secondary excess reimbursement may be acceptable, as long as it covers the fees you are likely to face.
FAQ
Is credit card car-hire insurance in the USA primary or secondary? It is often secondary, meaning you must claim with another policy first and then seek reimbursement. Always read the card benefit guide for your specific card.
Will secondary cover always reimburse the full amount I am charged? Not necessarily. Some policies exclude loss of use, admin fees, tyres, glass, or towing. Reimbursement may also be capped, so check limits and exclusions.
Do I still need to report damage if I have primary cover? Yes. You should report incidents promptly, follow rental company instructions, and provide any required police report. Failure to report can invalidate cover.
Can I have both primary and secondary cover at the same time? Yes. For example, a rental company product may act as primary for vehicle damage, while a separate policy reimburses your excess as secondary. The order of payment depends on each contract.
What should I keep to make any car hire claim easier? Keep the rental agreement, condition reports, photos at pick-up and drop-off, incident report, itemised invoices, and any settlement letters from the first payer.
