Travel Terms Decoded
Don't let jargon ruin your trip. Here is everything you need to know about your coverage.
A Section
Accidental Death & Dismemberment (AD&D)
Coverage that provides a benefit if the cardholder dies or suffers a serious injury (e.g., loss of limb or sight) due to an accident, usually while traveling.
Actual Cash Value (ACV)
The value of an item at the time of loss, calculated as the original cost minus depreciation. This is typically lower than the cost to replace the item with a new one.
Auto Rental Collision Damage Waiver (CDW)
A waiver that relieves the renter of financial responsibility for damage to or theft of a rental vehicle. When your credit card includes CDW coverage, it can substitute for purchasing this waiver.
C Section
Collision/Loss Damage Insurance (CLDI)
Reimburses for physical damage or theft of a rental car when the rental is fully paid with the credit card. Does not usually cover liability.
Coverage Limit
The maximum amount an insurance benefit will pay for a covered claim.
Covered Reason
Specific events or circumstances listed in the policy that qualify for a benefit (e.g., illness, severe weather, job loss).
D
Deductible
The amount you must pay out-of-pocket before the insurance benefit kicks in.
Delayed Baggage Insurance
Covers essential items (clothing, toiletries) if checked baggage is delayed beyond a specified time threshold.
E
Emergency Medical Insurance
Covers emergency medical expenses incurred while traveling outside your home province or country.
Extended Warranty
Automatically extends the manufacturer's original warranty on eligible purchases made with the card.
F
Flight Delay Insurance
Reimburses reasonable expenses (meals, lodging) if your flight is delayed beyond a certain threshold.
H
Hotel Burglary Insurance
Covers personal belongings stolen from your hotel room during your stay.
I
Incidental Expenses
Costs incurred due to travel delay (meals, toiletries), often reimbursed under delay insurance.
M
Manufacturer’s Warranty
The original product warranty, which may be extended by your credit card.
N
Named Insured
The person eligible for benefits under the policy (primary cardholder and potentially others).
P
Pre-Existing Condition
A health issue you had before the coverage started; usually excluded from coverage.
Proof of Loss
Documentation required to process an insurance claim (e.g., police report, receipts).
Purchase Protection
Protects eligible new purchases against loss, theft, or accidental damage for a set period.
S
Supplementary Cardholder
A person given a secondary card on the account; they may or may not be covered under benefits.
T
Travel Accident Insurance
Offers coverage for accidental death or injury while traveling on a common carrier.
Trip Cancellation
Reimburses non-refundable, prepaid travel expenses if you cancel before departure for a covered reason.
Trip Delay Insurance
Pays for food/lodging expenses when your trip is delayed (e.g., 4+ hours) for a covered reason.
Trip Interruption
Reimburses unused costs and return transport if you must cut your trip short.