Many credit cards offer travel perks such as trip and rental car insurance, yet their coverage options rarely outshone those purchased through travel companies.
These benefits may also be limited in scope; check for hidden fine print and exclusions before using your card for payments such as flights, cruises or package tours in order to qualify.
Coverage
Travel credit cards typically provide trip cancellation and interruption coverage that reimburses for pre-paid expenses such as airfare. Some cards also offer trip delay insurance that provides accommodations and meals if your flight, cruise ship or train is delayed by more than 12 hours; additional coverages might reimburse damage to a rental car while still others provide medical evacuation coverage.
Travelers should review their credit card’s benefits guide for information on the type and scope of coverage provided, in order to decide if purchasing separate travel insurance is the better choice.
Credit card travel protection differs from traditional travel insurance in that it typically only covers specific events and provides less generous coverage limits than their traditional counterpart. Still, many travelers find the extra peace of mind offered by credit card travel protection worth its additional costs.
Requirements
Many credit cards offer travel protections that reimburse eligible nonrefundable bookings; however, coverage may be limited and lack the comprehensiveness of standalone travel insurance plans.
To claim coverage, purchases must have been charged on your card, and receipts and relevant documentation submitted directly to your provider. Depending on your policy there may also be time limits set for filing claims.
No-fee credit cards tend to offer more robust travel protection, while no-fee credit cards typically only provide basic roadside assistance coverage. When considering insurance policies for yourself or others, remember to also consider life, health, home and auto policies available as backup coverage – in case credit card travel protections don’t provide enough. Generali provides travel plans specifically tailored for travelers needing more dependable coverage than what their credit card can offer such as our Premium travel policy that covers preexisting medical conditions with higher benefit limits than many credit cards provide.
Limits
When searching for a credit card that provides travel protections, it’s important to keep in mind the type of coverage you need. While some cards only cover medical expenses, others provide greater coverage such as lost luggage or flight delays. Some cards require that all aspects of your trip are booked with that card or use up certain points/miles before activating coverage.
Credit card travel protection benefits typically offer lower coverage limits and exclusions than standalone travel insurance policies, for instance with regards to rental car damage coverage being limited up to $250,000, whereas traditional policies usually provide up to $250,000. You can learn more about a particular card’s coverage by reading its terms and conditions or by reviewing various travel reward credit cards online reviews and comparison resources; this will allow you to select one that meets your individual needs best.
Exclusions
When selecting credit card travel protection benefits, make sure they meet your specific needs. For instance, some cards offer trip cancellation insurance that reimburses nonrefundable prepaid trips due to certain covered reasons if cancelled without refunding them prior. While this feature might appear similar to what’s offered through standalone plans, credit card policies often come with lower claim limits and more restrictive exclusions than their standalone counterparts.
Additional common credit card travel protection benefits include car rental collision damage coverage that will help cover charges for lost or stolen rental cars and personal item theft from hotels/motels rooms. To take advantage of these coverages, however, you will need to charge the full rental car costs onto your card while declining collision insurance from car rental agencies.
Keep in mind that credit card travel protection typically only extends to you and any eligible family members traveling with you – whereas standalone travel insurance policies can often cover everyone traveling together.
