Credit card travel insurance can be an invaluable service, yet often doesn’t fully cover your travel costs. Medical costs like emergency room visits or hospital stays could easily surpass coverage provided by credit cards.
Credit card policies often contain low claim limits; as a result, it would be wise to purchase a separate travel insurance policy instead.
Trip cancellation
Most travel credit cards offer some form of trip cancellation coverage, though it’s essential that you understand exactly what that coverage entails. Unfortunately, in many instances it won’t cover the full costs if your trip needs to be canceled due to inclement weather or another emergency.
Credit card trip cancellation insurance typically only provides coverage in specific situations such as job loss or school year extension, terrorism, jury duty or medical emergencies – unlike third-party trip protection policies offering Cancel for Any Reason coverage.
Credit card travel health insurance offers limited protection against high-cost medical countries and repatriation costs, but if you want more comprehensive protection than that provided by most credit cards, consider purchasing one of Generali’s travel insurance plans instead – we have three plans tailored specifically to the needs of travelers with preexisting conditions as well as those on a tight budget.
Trip interruption
If something arises that forces you to cut short or end your trip early, this protection can help cover some expenses. For instance, if food poisoning strikes or you break an ankle hiking and need to return home early due to medical advice from the doctor, using this coverage as reimbursement of lost prepaid costs.
Most comprehensive travel insurance policies offer trip interruption coverage. The covered reasons may differ depending on which plan is chosen; check your policy’s details for more information.
Some policies only reimburse you for any unused hotel stays; other policies cover expenses like flight home and transportation to/from the airport. Before purchasing any policies, read carefully so you understand their full scope.
Medical expenses
Should an illness or injury arise while travelling, credit card travel medical insurance could cover some expenses. Coverage varies by card and company – some provide only limited protection while mid-tier policies offer up to 20 times that amount of coverage.
To qualify for coverage, you typically must make all payments related to travel or living accommodation using your premium Visa card, with your itinerary’s name appearing on the card itself. Furthermore, good standing must exist among cardholders before filing claims can be submitted.
One downside of credit card travel protection plans is their inability to cover pre-existing conditions such as high blood pressure or diabetes, making coverage limited if necessary. They also often impose destination and activity restrictions which limit how you use their coverage.
Lost or stolen luggage
Luggage loss or theft is one of the worst travel experiences, especially when your bags contain expensive items. Credit card travel insurance will typically provide secondary coverage in these instances but only after filing a claim with an airline for lost or stolen luggage.
NerdWallet points out that airlines only owe passengers compensation up to an agreed-upon maximum amount (minus depreciation), meaning you should keep receipts for any expensive items you packed into your bag.
With premium visa cards such as the Infinite or Signature series, such as Infinite or Signature, comes free travel accident and lost luggage coverage. Furthermore, additional coverage can be purchased as a standalone travel policy policy.
Rental car coverage
Some credit cards offer rental car coverage, though the details vary depending on which card it is. The best way to understand what’s covered is to contact your card company and request a copy of their policy; also, review the cardholder’s guide to benefits to learn how to activate coverage and file claims.
Some cards offer auto rental collision damage waiver coverage that stands as an add-on to the car rental agency’s own insurance. To activate this benefit, it’s necessary to pay with that card instead of accepting their CDW policy; you could then get reimbursed for reasonable administrative, loss-of-use and towing charges should your rental become stolen or damaged.
Keep in mind that credit card travel protection is limited, so always bring along an overall health or life policy to cover yourself while away from home. Also try not to make expensive purchases using your credit card during this time!
