Credit cards with travel insurance benefits can be an ideal way to cover yourself and your family against serious injury or death in case of emergency situations, but before booking any trips it’s essential that you speak with the benefits administrator of that card to understand all coverage options that are available to them.
Cancellation and Interruption Coverage
Many credit cards now provide travel protections as standard features or optional add-ons, providing reimbursement of non-refundable expenses in case your trip is cancelled or interrupted due to factors like bad weather, terrorist incidents, illness or jury duty. Unfortunately these policies tend to be much more limited than independent travel insurance plans, often including pages of exclusions and fine print that limit coverage.
Though details vary by card, premium credit cards generally offer comprehensive travel coverage that includes lost baggage and emergency evacuation protection, travel accident insurance coverage for you or any immediate family members in an accident while traveling on common carriers or using covered trips paid with their card, and medical evacuation coverage that can pay for expensive air ambulance rides in case of serious illness or injury during travel paid with their card.
Trip Delay Coverage
Credit cards often provide trip delay coverage that reimburses travel expenses incurred if your trip is delayed beyond a certain amount of time or requires an overnight stay. Coverage usually applies to trips booked with common carriers like flights, cruises and tours and usually covers cardholders along with their spouse/domestic partner and unmarried dependent children up to age 19 (26 for full-time students) when booked through these carriers.
Credit card travel insurance policies vary significantly, making it important to read them closely before purchasing one. Though credit card protection doesn’t usually offer as much coverage than buying an insurance policy directly, it may still provide adequate compensation should your trip be canceled or interrupted. Furthermore, many cards offer additional perks like car rental collision damage waiver, lost luggage protection and travel accident protection with each purchase of travel reservations – making their use simpler still.
Emergency Medical Coverage
Credit card travel insurance policies are tailored to benefit the primary cardholder, so it is essential that when selecting a credit card that provides travel insurance you understand this fact. Your spouse and children may be eligible to file claims with certain policies; however, preexisting medical conditions might prevent this option.
Cardholders looking to qualify for travel credit card benefits typically need to use it to cover trip expenses such as flight tickets, hotel bookings and package tours – and pay the entire bill using it. Furthermore, some credit card companies impose annual limits for coverage.
Some credit cards provide enhanced coverage for specific trips, including “cancel for any reason” benefits that will reimburse prepaid travel expenses like airfare and hotels. Furthermore, some cards include rental car coverage that acts as secondary coverage to personal auto policies of primary cardholders; luggage and lost-baggage reimbursement coverage also vary between cards.
Emergency Evacuation Coverage
Credit cards offering evacuation coverage will cover the cost of returning you home in case an illness, weather event or political unrest forces a change to your travel plans. Usually this coverage kicks in once your own insurance (like travel health policies or primary auto policies) pays out.
Finding out your card’s coverage limits requires reviewing its benefits guide or calling and requesting one directly. From there, you can compare it with policies offered by travel and medical insurers; but keep in mind that credit card policies often are limited and may not offer comparable protection; particularly on medical coverage front. Medical evacuation coverage usually only pays for getting you to a hospital and does not cover treatment once there; thus making comparison shopping an invaluable exercise.
