Credit card travel insurance benefits are an attractive perk of owning one of these cards, although protections vary according to each card. Common protections include luggage and travel accident coverage, trip cancellation protection and medical evacuation assistance.
Understanding how credit card travel insurance works will allow you to select the ideal card for your needs. Many cards exclude preexisting conditions, high-risk activities and trips to unsafe countries from coverage.
Trip cancellation
Trip cancellation coverage, like other credit card insurance perks, can provide significant financial relief should travel plans be altered or cancelled unexpectedly. As policies differ depending on which credit card issuer it comes from, it is crucial that you fully understand exactly what each plan covers; some cards have geographical limitations while others require you to charge a percentage of trip expenses as part of activating coverage.
Before making your selection, it’s advisable to thoroughly compare each policy’s maximum coverage limits and other terms and conditions. Some premium credit cards also offer comprehensive travel protection plans with Cancel for Any Reason coverage that provides greater flexibility if an unexpected or unavoidable trip cancellation arises; however these features don’t come standard across every card and tend to be more costly than traditional travel insurance policies.
Trip interruption
Most premium travel credit cards include trip interruption coverage that reimburses prepaid, nonrefundable expenses should your trip be interrupted for covered reasons – up to $10,000 per trip ($20,000 annually per cardmember year) in coverage is typically offered.
Interruptions to a trip might include illness or injury. From food poisoning to less serious problems like an ankle break while hiking, if something arises that necessitates early return home it could be advised that you leave early from the trip and return home.
Just as with credit card insurance policies in general, trip cancellation and interruption benefits vary considerably among cards. It’s wise to read your card’s terms and conditions to better understand its protections as well as any exclusions such as preexisting medical conditions or minimum trip costs to activate coverage; such restrictions could potentially nullify its benefits altogether, leading many people to purchase an independent travel policy offering extra features like cancel for any reason coverage.
Baggage loss
Credit cards offering travel protection typically offer a comprehensive suite of benefits, such as trip cancellation/interruption insurance, lost baggage insurance and auto rental collision/damage coverage – and may even include medical evacuation coverage.
Baggage loss coverage provides reimbursement of the actual cash value, repair or replacement of lost, stolen or damaged luggage and personal effects while traveling on common carriers such as airplanes, cruise ships and trains. You must report such instances quickly to your card issuer within a specified time period and provide necessary documents such as receipts or correspondence from travel providers who won’t reimburse you.
Credit card travel protection policies vary, and may exclude activities and situations like high-risk sports or visits to countries with government travel advisories or warzones. They also typically don’t cover preexisting conditions and don’t usually extend coverage beyond you and your immediate family members.
Emergency medical evacuation
Being injured or sick while traveling alone can be extremely harrowing; compound this with unexpected medical evacuation costs and it could become financially ruinous.
Costly medical flights to get you to an appropriate treatment facility may exceed tens of thousands or hundreds of thousands of dollars; that is why emergency medical evacuation coverage should be one of the cornerstones of comprehensive travel and health plans.
Credit cards often offer travel health insurance that includes some form of medical evacuation coverage; the Chase Sapphire Reserve for instance covers up to $100,000 of emergency transportation costs if your trip was paid for with it and is more than 100 miles from home.
To take advantage of this benefit, an attending physician typically needs to certify the severity of your accidental injury or illness is appropriate for evacuation. Medical evacuation coverage usually follows other forms of coverage such as provincial/employer sponsored health plans, private travel insurance policies or global assistance membership plans.
