Credit card travel insurance can be an attractive perk, but its benefits differ considerably depending on which card is in use and it’s wise to research what they contain before relying on them.
Credit card travel protections only apply when booking with that card and have low claim limits with specific exclusions.
1. Coverage for pre-existing conditions
Pre-existing medical conditions typically aren’t covered under most credit card travel insurance policies unless otherwise specified in their contract. Pre-existing conditions are defined as any health issue which required treatment or doctor visits within 6 months prior to purchasing the policy (this time frame varies by insurer).
Credit card travel protection benefits generally offer less comprehensive protection than stand-alone paid policies, and they may not cover all potential expenses. Trip cancellation coverage typically maxes out at $10,000; evacuation assistance covers transport out of countries that have issued warnings against traveling; other coverage exclusions include trips to war zones or adventure travel that includes risky activities such as scuba diving.
2. Excess charges
Credit card travel benefits have become an increasingly popular way for issuers to differentiate their cards from others and provide value in return for annual fees. But the coverage and limitations can differ widely among cards; reimbursement amounts for trip cancellation and interruption coverage and medical evacuation coverage, for instance, can vary considerably by card and plan.
Credit card travel insurance offers some advantages over purchasing an independent policy, but it should never serve as a replacement. This is particularly true for travelers with preexisting conditions who require more extensive protection than many credit cards can provide. For maximum coverage consider an ultra-premium card like Capital One’s Venture X Rewards Credit Card (terms apply) or American Express’ Platinum Card(r), both offering a variety of forms of coverage including CDW on car rentals.
3. No coverage for domestic travel
Credit cards often come equipped with comprehensive travel protections, including trip cancellation and interruption insurance, car rental collision damage waiver and emergency evacuation and assistance services. These benefits may even make obtaining one cheaper than purchasing it separately.
Before relying on credit card travel insurance, it’s crucial to gain an in-depth knowledge of its terms and exclusions. Coverage will differ greatly between cards.
Julie Menez, points strategy coach and host of the Geobreeze Travel podcast, recommends purchasing additional travel insurance to cover gaps present in most credit card policies, such as high excess fees or lower caps for emergency medical treatment. In addition, many card-based travel policies do not cover changes or cancellations for non-emergency reasons.
4. No cover for high-value items
Credit cards typically provide some level of travel protection, but for more ambitious journeys or items with high value, purchasing an independent policy could be worth your while. Some policies offer significantly increased medical coverage as well as coverage of activities like scuba diving and hang gliding which typically don’t fall under credit card coverage’s umbrella.
Additionally, no- and low-annual-fee credit cards often only offer limited travel benefits, often excluding certain categories or having lower limits than policies from third-party providers. To learn more about what’s covered for you and whether any requirements must be fulfilled before being eligible for benefits like trip cancellation coverage and emergency evacuation protection on some cards, consult your benefits guide or customer service number on your card and call.
5. No cover for emergency evacuation
Credit card travel insurance often lacks the same level of coverage provided by standalone travel medical plans. Traditional plans typically provide Cancel for Any Reason coverage as well as emergency transportation and evacuation coverage.
American Express’ Platinum Card covers evacuation costs but leaves it up to its Global Assist Hotline to decide how and where you are evacuated, as well as which hospital provides adequate treatment – decisions most travelers wouldn’t trust a credit card company with making.
If a credit card offers many perks and you want to ensure you are fully protected while traveling, consider purchasing an independent travel insurance policy as this may save a large bill from coming out of pocket later.
