Credit Card Coverage Glossary

Credit card benefit documents are written in dense legal language. This glossary translates the most important terms into plain English.

Key Terms

Primary Coverage

Your credit card pays first, before your personal insurance. No need to file with your own insurer first.

Secondary Coverage

Your credit card only pays after your personal insurance has paid its share.

CDW (Collision Damage Waiver)

Rental car company's own damage waiver. Declining this is usually required to activate your credit card's rental coverage.

Trip Interruption

Reimbursement for unused, non-refundable trip costs when you cut a trip short for a covered reason.

Trip Cancellation

Reimbursement for prepaid, non-refundable expenses when you cancel before departure for a covered reason.

Emergency Evacuation

Covers transport to the nearest medical facility. On US cards, this is separate from — and often confused with — medical treatment coverage.

Benefits Administrator

The third-party company (often Allianz) that processes your claims on behalf of your card issuer.

Purchase Protection

Coverage for eligible items stolen or accidentally damaged within 90–120 days after purchase.

Loss of Use

Fees charged by rental companies while a damaged vehicle is being repaired. Covered by some premium card rental policies.

Guide to Benefits

The official document from your card issuer detailing all benefit terms, limits, and exclusions. Always the authoritative source.

Extended Warranty

A credit card benefit that extends the manufacturer's warranty on eligible items, typically by one additional year. The item must be purchased entirely with the card.

Return Protection

Allows you to return eligible items the retailer won't take back, usually within 90 days of purchase. Coverage limits are typically $250–$500 per item.

Deductible

The amount you pay out of pocket before your card's coverage kicks in. Some premium cards offer $0 deductible on rental car and purchase protection claims.

Pre-existing Condition Exclusion

A clause that denies travel insurance claims related to medical conditions diagnosed before the trip. Nearly all US credit card travel policies include this exclusion.

Subrogation

The process by which your card issuer's insurance recovers costs from a third party after paying your claim. You may be asked to cooperate during this process.

Annual Benefit Limit

The maximum total amount your card will pay across all claims in a calendar or cardmember year. Separate from per-incident limits.