Credit cards with travel insurance policies can help mitigate some of the risks of travelling for work or vacation, so be sure to read all of the fine print carefully to understand exactly what is covered and what isn’t.
Personal finance and travel websites frequently publish roundups of cards with specific coverage details in an easy-to-understand format.
Trip cancellation insurance
Trip cancellation insurance reimburses cardholders of prepaid, nonrefundable expenses in the event they must alter or cancel their travel plans, typically offered with select credit cards. Maximum coverage amounts, covered situations and eligibility requirements differ according to each card – the Chase Sapphire Preferred(r) Card offers up to $10,000 per traveler and $20,000 per trip as coverage with only an annual fee of $95, plus interruption and delay coverage as an added feature.
Other cards may provide trip interruption and delay insurance, emergency evacuation assistance and other travel protections, like annual fees that make these policies hard to justify unless you travel often and may need the benefits. Others provide travel accident insurance which covers accidental death or dismemberment while travelling on common carriers such as airlines, cruise lines, bus and train transportation; this coverage might only cover part of your losses and often has specific exclusions such as preexisting medical conditions or declared war in your travel destination region.
Trip interruption insurance
Planned travel arrangements can change unexpectedly for any number of reasons, from an ill relative dying suddenly or your doctor advising against going, to medical emergencies which require you to cancel. With that in mind, having a credit card that offers trip cancellation or interruption insurance could provide much-needed coverage of expenses in such an instance.
Chase Sapphire Reserve cards provide up to $10,000 per person and trip in nonrefundable travel expenses coverage should illness, severe weather or jury duty make your journey cut short – as well as unexpected job loss or change in military orders – necessitate cuts in travel plans. Their Guide to Benefits details this coverage in further detail.
Most cards that offer this coverage require you to present evidence of loss before filing a claim. A card’s benefits administrator will guide you through specific steps for submitting documentation such as receipts or doctor’s notes for this. Some cards even offer virtual claim numbers to make this process faster and easier.
Medical insurance
While most credit cards offer some form of travel protection, few provide medical coverage abroad. Therefore, those concerned about becoming sick or injured during travel should invest in an independent policy which includes medical protection abroad.
Certain cards, like the Chase Sapphire Reserve, provide up to $1 million of travel accident coverage when using your card to make purchases – such as death, dismemberment and loss of speech/hearing – while others provide emergency evacuation coverage that pays transportation costs should you become ill or injured during travel on common carriers like planes, cruise ships or trains.
Other cards provide extra benefits, like lost luggage insurance and rental car coverage. American Express’ Platinum card in particular provides comprehensive travel-related expenses coverage, such as hospital treatment if an injury occurs while using their card – even overseas!
Rental car insurance
Many credit cards provide rental car insurance, but it’s essential to understand exactly what sort of coverage you are receiving. Most rental counter policies offer “insurance”, not actual coverage; rather they act as waivers from liability imposed on them by car rental companies; meaning if your vehicle is stolen or damaged it remains your responsibility and may or may not be covered by your credit card company’s coverage plan.
Car rental insurance generally falls into secondary coverage, meaning it kicks in once your personal auto and travel policies have been used up. Furthermore, certain cars such as high-value luxury or commercial vehicles and certain accidents are generally not covered.
Some cards — like the Chase Sapphire Preferred — provide car rental collision damage waiver coverage, but to access it you typically must pay your full rental bill using that card. Contact your card issuer prior to renting any vehicle for more details regarding this coverage.
