The Benefits of Credit Card Insurance1
Your credit card can give you more than convenient purchasing power and great perks like travel or cash back rewards. Some cards also provide the added benefit of insurance.
Upon the occurrence of an event covered by the insurance, it may partially reimburse you for eligible travel expenses, or loss or damage to car rentals or qualifying purchases.
However, similar to other insurance, credit card insurance is subject to terms, conditions, limitations and exclusions (including pre-existing medical condition exclusions). These are described in the insurance certificates you receive with your credit card package. Some insurances require purchases, auto rentals, common carrier fares and other trip costs to be charged to your credit card to activate coverage (other conditions may also apply).
Credit card insurance may be supplementary to other home, auto or medical coverage you may already have (meaning all other sources of insurance, recovery or indemnity must be exhausted before credit card insurance pays any benefits to you).
If you charged your trip to your card, your travel credit card insurance may partially reimburse you for lost luggage, or eligible expenses arising from delayed flights or an interruption of your trip while travelling.
Subject to the terms and conditions in your insurance certificate, you may be partially reimbursed for the value of your luggage and possessions in the event your checked or carry-on baggage is lost or damaged.
You may be partially reimbursed for the reasonable living expenses you incur in the event your flight is delayed more than four hours. These expenses may include a car rental, hotel stay, and meals you purchased during the period of delay.
Auto Rental Collision/loss Damage Insurance
When arranging for a car rental agreement, you may be asked to purchase the rental company’s daily insurance or its daily Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). If you pay for the car rental with a credit card with Auto Rental Collision/Loss Damage Insurance (CLDI) AND decline the rental agency’s daily insurance or CDW or LDW, the CLDI insurance with your credit card may provide coverage from loss or damage to the rental vehicle up to the actual cash value (ACV) of the rental vehicle as defined in your insurance certificate. Note that some car rental companies may assess their damages at an amount greater than the ACV of the rental vehicle and you may be liable to the car rental company for the difference.
Therefore, before declining the car rental company’s daily insurance or CDW or LDW, you should read carefully and compare the terms of the car rental agreement, the CLDI insurance certificate in your card package and any other insurance you own to decide which coverage best meets your protection needs.
You should also check with your personal automobile insurer and the rental company to ensure that you and all other drivers have adequate third party liability, personal injury and damage to property coverage because the CLDI insurance only covers theft, loss or damage to the rental car.
Purchase Security and Extended Warranty Insurance
If a new qualifying purchase paid for with a card with Purchase Security and Extended Warranty Insurance is damaged or stolen within 90 days of purchase, your credit card insurance may aid in repair, replacement or reimbursement. Additionally, your credit card may offer extended warranty protection on qualifying purchases. Some of these warranty extensions can last up to one year, helping you handle the costs associated with repair or replacement.
Choose a credit card with insurance coverage from CIBC
Choose a credit card with the credit card protection services that meet your needs. CIBC offers a wide variety of credit cards to choose from. Should you have more questions about these cards or their associated benefits and services, feel free to call a customer care representative at 1-800-465-4653.
1 Insurance coverage(s) included with CIBC credit cards are provided by Royal & Sun Alliance Insurance Company of Canada (RSA). Different cards will have different coverage(s). To learn about included insurance(s), and important information regarding coverage eligibility requirements, benefits, limitations and exclusions, see www.cibc.com/ca/credit-card/agreements-insurance.html and the insurance certificate(s) in your card package. Some insurance(s) require purchases, auto rentals, common carrier fares and other trip costs to be charged to the card to activate coverage (other conditions may also apply). Auto Rental Collision/Loss Damage Insurance (CLDI) is for rentals up to 48 days; and the car rental company’s Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) must be declined. CLDI provides coverage up to the actual cash value (ACV) of the rental vehicle as defined in your insurance certificate. Note that some car rental companies may assess their damages at an amount greater than the ACV of the rental vehicle and you may be liable to the car rental company for the difference. Therefore, before declining the car rental company’s CDW or LDW, you should read carefully and compare the terms of the car rental agreement, the CLDI insurance certificate in your card package and any other insurance you own to decide which coverage best meets your protection needs. Out-of-Province Emergency Travel Medical Insurance is for the first 15 days of a trip; primary cardholder must be age 64 or under; if they are, then their spouse also may be insured if age 64 or under, and dependent children; this insurance and Trip Cancellation/Trip Interruption Insurance do not cover certain pre-existing medical conditions that existed prior to your effective date of coverage. Certain RSA coverages are “excess insurance” (all other sources of insurance and recovery must be exhausted before benefits are available). For more information, call RSA toll-free at 1-866-363-3338 in Canada, continental U.S and Hawaii or collect from elsewhere at 905-403-3338.