Many credit cards offer travel insurance that can assist in recovering expenses related to trips, such as lost or delayed luggage and flight cancellations. Before relying on this credit card protection, however, it’s essential that you understand its limits and exclusions in detail.
Generali offers several premium travel cards that provide comprehensive medical and trip cancellation insurance coverages, so before making your application be sure to compare available coverages and annual fees.
1. Cancel For Any Reason
Though it is legal to cancel a credit card before its annual fee is due, doing so can damage your credit. Opening and closing cards frequently can signal to lenders that you pose high-risk borrowing requirements, prompting them to increase your interest rates when applying for additional cards in the future.
If you are thinking about canceling your credit card, call its issuer first to see if they offer any incentives to stay. Some cards offer refunds of the annual fee or statement credits or bonus miles as incentives to encourage account owners to keep them open.
Before calling, check your online account to make sure all rewards have been redeemed and that there isn’t an unpaid balance. Furthermore, it would be prudent to send a written letter verifying cancellation as well as request it be included on any free credit reports so it doesn’t fall through the cracks later on. Finally, shred your old card so fraudsters won’t use it any longer.
2. Pre-Existing Condition Waiver
Travel medical insurance provides travelers with an important right: waiving conditions. Those with preexisting medical conditions should look for policies offering this waiver; to qualify for it, insurance must be purchased either when making their initial trip deposit (or shortly thereafter depending on insurer) and cover all non-refundable expenses – plus, all traveling family members must meet eligibility requirements at that time.
Without a pre-existing condition waiver, credit cards may deny coverage for medical claims that arise during your trip. With one in place, travel medical insurers don’t take your recent health history into consideration when reviewing claims or determining eligibility.
3. Deductibles
Most credit card travel insurance policies feature a deductible, which is the amount you must pay out-of-pocket before coverage kicks in. Although it differs from traditional health plans’ deductibles, its function remains similar.
Medical coverage with credit card travel insurance usually begins by contacting the card issuer to begin the claims process. They will either directly bill medical providers directly, reimburse you directly afterward or arrange direct billing directly with them according to your card’s benefits guide. Covered expenses could include emergency room visits, treatment for illness or injury, air ambulance fees and medical evacuation, among many others.
Some cards offer a separate travel accident benefit that covers accidental death or dismemberment and loss of speech, sight or hearing while traveling on common carriers or covered trips. This coverage typically applies to you and anyone legally dependent upon you as well as anyone traveling under your care.
4. Exclusions
Credit card travel insurance policies vary significantly in their terms and conditions; some cards do not cover weather as a reason for trip cancellation, while others don’t cover rental car loss or damage at all. Furthermore, claims processes may be more cumbersome with credit card plans compared to independent insurers and their limits may often be lower.
Some premium travel cards provide comprehensive protection benefits, including flight accident and emergency medical evacuation coverage. For instance, Chase Sapphire Reserve includes up to $1 Million of travel accident insurance covering accidental death or dismemberment as well as loss of speech, sight or hearing for trips covered with this card.
However, these coverages may not always meet the needs of travelers who travel extensively and frequently. To address this, many choose supplemental protection from independent policies which offer greater coverage than most credit card plans. When selecting an insurance plan that best meets your requirements and needs you should compare available coverages, limits, and exclusions before selecting one card plan.
