What does "secondary coverage" mean in the context of a Personal Auto Policy?

In the context of a Personal Auto Policy, "secondary coverage" refers to coverage that is activated only after the limits of primary coverage have been exhausted. This means that if an insured driver is involved in an accident and their primary insurance policy does not fully cover the costs incurred—such as damages or medical expenses—the secondary coverage will then kick in to provide additional financial protection.

This concept is vital in understanding how different types of insurance work together. For example, if someone has both liability insurance and an umbrella policy, the umbrella policy typically serves as secondary coverage. It provides an additional layer of protection that helps cover costs beyond what's offered by the primary policy.

The definition highlights the importance of maintaining sufficient primary coverage, as secondary coverage is meant to supplement rather than serve as the first line of defense in an insurance claim situation.