Primary Insurance

What Does Primary Insurance Mean?

Primary insurance is a policy that provides coverage first, even when the policyholder has other policies covering the same risk. The secondary policies are only utilized once the primary policy has reached its financial limit.

Insuranceopedia Explains Primary Insurance

Primary policies typically apply to property, liability, or health coverage.

The primary insurance is the first policy to cover a financial loss, while secondary or excess insurance covers any remaining amount once the primary policy’s limits are exhausted.

For example, some people in the U.S. have private health insurance in addition to Medicare. When billing for a medical expense, the private insurance is charged first, and Medicare pays only for the excess amount.