ABC's of car rental insurance.
Authorized person
For the purposes of CLDI coverage provided by a Visa card eligible for coverage, an authorized person is anyone having a valid drivers license who the Insured Person authorizes to drive the rented vehicle.
Auto rental agency
A "traditional" auto rental agency is a company licensed to rent vehicles. The Visa Collision/Loss Damage Insurance program will provide coverage to cardholders when the full-cost of the rental is paid for using a Visa card eligible for coverage and the Collision/Loss Damage insurance offered by the auto rental agency is declined. Throughout this web site and on the certificate of insurance, the terms 'rental company' and 'rental agency' refer to both "traditional" auto rental agencies and car sharing programs.
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Cardholder
The cardholder is the person whose name is printed on the front of the Visa card.
Car sharing
A car sharing program is a domestic "car rental club" which gives its members 24 hour access to a fleet of cars parked in a convenient location. Cars can be rented on a hourly, daily or weekend basis. Car sharing program members' credit cards are billed monthly for all use and associated mileage charges, as well as their monthly membership fee. The Visa Collision/Loss Damage Insurance program will provide coverage for Visa cardholders when the full-cost of each use (per use and mileage charges) is paid for using a Visa card eligible for coverage and the car sharing program's Collision/Loss Damage Insurance is declined.
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Collision Loss Damage
Is insurance provided by a Visa card eligible for coverage that pays the amount the driver is liable for to the rental car agency due to collision damage or theft while he/she is renting the vehicle. It also covers the cost of any valid loss of use charges incurred by the rental agency.
Coverage activation
The Collision Loss/Damage coverage provided by a Visa card eligible for coverage takes effect when a Visa card eligible for coverage is used to pay for the entire cost of the rental from the rental agency and when the rental agency's collision damage waiver (CDW), or similar protection on the rental contract, is declined.
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Eligible Visa card
An Eligible Visa card is any Visa card which features the Visa Collision Loss Damage Insurance coverage.
Frequent Flyer or member points
The Visa Collision Loss/Damage coverage also applies if you receive "free rental day(s)" as part of a Visa travel reward program (or similar Visa program) or you use points earned as part of a Visa Financial Institution's points program. However, if the free rental day(s) are combined with rental days for which you are paying the negotiated rate, or the member points only cover a portion of the cost, the entire balance must be paid using a Visa card eligible for coverage. For example, if the vehicle is rented for a week, and two days of that period are "free rental days" all of the remaining five days must be paid using a Visa card eligible for coverage in order to qualify for the Visa Collision Loss/Damage coverage.
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Insured Person
The Insured Person is the Visa cardholder, who presents himself/herself in person at the rental agency, pays with a Visa card eligible for coverage, signs the rental contract, declines the rental agency's Collision Damage Waiver (CDW) or its equivalent, takes possession of the rental vehicle and who complies with the terms of the Visa Collision/Loss Damage Insurance policy.
Loss of use
This refers to the amount paid by the Visa Collision/Loss Damage Insurance coverage to a rental agency as compensation when a vehicle is not available for rental while undergoing repairs for damage incurred during the rental period.
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Personal effects
Personal effects insurance relates to theft of or loss or damage to personal belongings while they are in a rented car. It may also cover personal belongings while staying at a hotel or other accommodation during a trip. This insurance coverage is not provided by the Visa Collision/Loss Damage insurance coverage but is generally part of a homeowner or tenant insurance policy.
Tax-free car
Tax-free car provides tourists with a short-term (17 days to 6 months), tax-free vehicle lease agreement with a guaranteed buyback. Complete liability and zero-deductible collision/fire/theft insurance is typically included in the lease agreement and cannot be declined. The Visa Collision/Loss Damage Insurance program will not provide coverage for vehicles leased from Tax-free car companies because their insurance coverage cannot be declined.
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Third-party liability
When involved in an accident that causes injury or death to another person or persons, or does damage to property, the driver may be held liable. Third-party liability insurance is not provided by an Eligible Visa card; however, it may be included in a personal automobile insurance policy.
Vehicles covered
The Visa Collision Loss/Damage Insurance program covers all standard rental automobiles likely to be rented by a traveler. It also covers:
- Mini-vans, as defined by the manufacturer. This means a vehicle that transports up to 8 people, including the driver, and is exclusively for transporting passengers and their driver;
- Sports Utility Vehicles (SUVs).
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Vehicles not covered
The Visa Collision Loss/Damage Insurance policy does NOT cover the following types of vehicles:
- vans, cargo vans or mini cargo vans (other than Mini-Vans as described above);
- trucks, pick-up trucks or any vehicle that can be spontaneously reconfigured into a pick-up truck;
- limousines;
- off-road vehicles - meaning any vehicle used on roads that are not publicly maintained roads unless used to ingress and egress private property;
- motorcycles, mopeds or motor bikes;
- trailers, campers, recreational vehicles or vehicles not licensed for road use;
- vehicles towing or propelling trailers or any other object;
- mini-buses or buses;
- any vehicle with a Manufacturer's Suggested Retail Price (MSRP) excluding all taxes, over sixty-five thousand dollars ($65,000) Canadian, at the time and place of loss;
- exotic vehicles, meaning vehicles such as Aston Martin, Bentley, Bricklin, Daimler, DeLorean, Excalibur, Ferrari, Jensen, Lamborghini, Lotus, Maserati, Porsche, Rolls Royce;
- any vehicle which is either wholly or in part hand made, hand finished or has a limited production of under 2,500 vehicles per year;
- antique vehicles, meaning a vehicle over twenty (20) years old or which has not been manufactured for ten (10) years or more;
- tax-free cars.
Luxury vehicles such as BMW, Cadillac, Lincoln and Mercedes Benz are covered as long as they meet the above requirements.
Complete terms and conditions, including exclusions and limitations, are set out in the Certificate
of Insurance.
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