Credit card travel protections can provide valuable coverage should something unexpected occur while traveling, but it is essential that travelers understand all available coverages and exclusions prior to selecting their card.
Most credit cards provide travel protections such as trip cancellation and interruption insurance, rental car coverage and emergency medical assistance services. To qualify for these features, typically it requires paying with that card and maintaining a strong account history.
COVID-19
Many credit cards provide some form of travel protection, with premium cards typically offering far superior benefits than basic ones. For instance, these high-end cards often include cancel for any reason (CFAR) insurance to reimburse travelers’ prepaid expenses such as airfare and hotel reservations as well as tours, cruises and rental cars.
As well, some credit card travel insurance plans cover an array of reasons for canceling or changing trips. According to Sapphire Reserve’s guide for trip cancellation and interruption coverage, any “quarantine imposed by a physician or competent authority having jurisdiction for health reasons” would qualify as a covered event.
Not to be outdone, even the most comprehensive credit card protections don’t compare with the comprehensive medical and evacuation coverage offered by traditional travel insurance policies. For example, Sapphire Reserve emergency medical coverage caps out at $2,500 per person — while this might cover some treatment costs in certain countries, most travelers would exceed those limits under a typical trip plan.
International Students
Credit card travel insurance benefits are designed to help cover unexpected expenses such as lost luggage or trip cancellation costs, but coverage options may differ depending on which card is being used – therefore it’s essential to read up on all available coverage options before making your decision.
Some cards offer trip delay coverage that reimburses you for meals and accommodation if your flight is canceled or delayed by more than 12 hours due to adverse weather or mechanical breakdown of a common carrier, while others provide rental car accident and loss coverage that reimburses damage or theft; most policies cover both you and immediate family members.
However, there may be exclusions in coverage; such as travel to war zones or adventure travel involving risky activities. Also excluded is coverage if you have preexisting medical conditions and your trip extends beyond 60 days; in addition, certain cards do not provide coverage for experimental treatments or services not covered by your health plan.
Green Card Holders
As more travel becomes available to green card holders worldwide, they should remain aware of how their travel plans may impact their permanent residency. As a lawful permanent resident, you could be denied reentry into the United States if your trips exceed certain parameters; or fail to follow proper procedures.
Credit cards provide various advantages that can ease unexpected travel challenges, but their exact details vary by card and issuer.
Travel insurance coverage is one of the hallmarks of premium travel credit cards, with comprehensive policies like American Express’ Platinum Card offering extensive protection (terms may apply), while others provide more limited services like car rental damage waiver and trip interruption/cancellation insurance. Many policies only cover expenses charged directly to the card; it’s important to read carefully to understand their operation.
Health Insurance
Credit card travel insurance typically only covers prepaid, non-refundable trip expenses charged to your card, such as flights. Most cards offering travel insurance also provide emergency medical evacuation coverage that reimburses expenses incurred for being evacuated to a medical facility should you test positive for coronavirus or be forced into quarantine. Chase Sapphire Reserve(r) stands out by providing one of the most generous emergency medical evacuation policies with coverage up to $100,000!
If the COVID-19 pandemic forces you to cancel your travel plans unexpectedly, consider upgrading to a credit card that offers “cancel for any reason” travel insurance as an optional upgrade. Such plans typically offer higher coverage limits and up to 200% reimbursement of prepaid non-refundable costs; however, you must meet preexisting condition waiver requirements first in order to take advantage of them; furthermore, their deductibles tend to be higher and always try and get refunds directly from airlines, hotels or other travel vendors before resorting to such policies.
