Credit cards provide many travel-related advantages, including rewards, airline and hotel loyalty programs, airport lounge access and discounts on travel-related purchases. Some even include travel insurance or assistance services.
When selecting a card with travel protections, be aware of its coverage limits and exclusions. Some cards require payment of travel expenses with their card to activate coverage; other policies only cover authorized users.
Cancellation and Interruption Coverage
Under times of stress and uncertainty, travel plans may become disrupted. Therefore, it’s advisable to check if your credit card offers trip cancellation and interruption coverage that reimburses nonrefundable prepaid expenses should your trip be canceled due to illness, severe weather, family emergencies and more. This coverage reimburses nonrefundable costs in such situations.
Specific details depend on your card of choice; however, many will cover up to $10,000 of travel expenses paid with it. Note that this type of insurance only applies when all expenses associated with the trip are charged directly onto it; paying separately nullifies coverage.
American Express Platinum Card provides travel expense coverage of up to $20,000 every 12 months; please see your card’s terms and conditions for more details.
Trip Delay Coverage
Travel bookings made with credit cards that offer trip delay coverage could include reimbursement of expenses such as food and lodging incurred during an unexpected transportation delay of over a certain amount of time, provided an itemized list is submitted as well as evidence such as a police report or documentation from your transportation provider.
Credit cards offering this benefit often stipulate that for reimbursement to apply, your delay must last 12 hours or longer and require an overnight stay. Depending on your plan, this could exclude coverage in cases such as an accident on the highway or severe weather delays.
Most credit cards with trip delay coverage may also contain limits and exceptions; therefore, it’s crucial that you review each policy thoroughly when considering one. Some cards even provide extra protection through rental car insurance that can help safeguard against unexpected costs.
Emergency Medical Coverage
Your credit card may offer travel insurance benefits that provide emergency medical and transportation coverage; this type of protection differs from what is typically found in standalone policies; in fact, in some instances annual limits may even be reduced.
Credit card travel insurance policies may either pay primary or secondary, with secondary coverage applying any deductibles, copays and maximums from your own health plan first before providing reimbursements. As such, travelers should review their current health coverage prior to embarking on international trips, and purchase a supplement policy which offers medical and evacuation coverage as well as trip-specific benefits like loss luggage protection or travel accident protection.
Some credit cards provide secondary rental car collision and damage coverage as part of their travel insurance policies, helping travelers save money by not having to purchase separate policies from car rental agencies, or at least reduce costs of more expensive policies.
Baggage Delay Coverage
Credit card baggage delay coverage provides reimbursement for certain expenses associated with delays to luggage transportation, with coverage amounts depending on your card provider and terms that vary accordingly. As with other forms of coverage such as lost and stolen baggage policies, please carefully read all guidelines from your card provider in regards to baggage delay policies before signing on with them.
Assuming that most cards offer $500 in coverage per person, your actual limit may be lower and items you are allowed to buy may also be restricted. Claims must be filed within the specified time period set by your card provider in order to get reimbursed; consequently, this type of coverage makes an ideal complement to comprehensive travel insurance policies.
