Credit card travel insurance policies typically require that all or most of your trip-related expenses are charged directly to the card for coverage to take effect, with certain trips and medical situations excluded such as COVID-19.
Many premium credit cards now provide travel protection benefits that may help offset some of these losses, but how exactly does it work?
Coverage
Credit cards provide travelers with access to an array of travel insurance benefits. Coverage varies by card but typically includes rental car damage waivers that eliminate the need for separate car policies, trip interruption/cancellation coverage and travel accident insurance that operates similarly to AD&D policies as well as emergency medical expenses/evacuations coverage. To be eligible for these coverage benefits, cardholders typically need to make part or all of their payments using that credit card; sometimes this also extends to immediate family traveling with them.
Many travelers assume that credit card’s travel protection offerings are equivalent to independent policies purchased independently, but there can be several key differences, including coverage limits, preexisting medical conditions and costs. Before planning your next journey it is vital to understand exactly the terms and conditions of the card’s travel protection program as it could differ significantly from traditional policies purchased independently.
Exclusions
Credit card travel insurance plans typically provide limited coverage in various situations. This could include trip cancellation, interruption, emergency medical expenses and lost luggage reimbursement. To be eligible for these reimbursements, cardholders typically must present receipts, documentation such as correspondence with travel providers or doctor’s notes/police reports to qualify. Usually claims can be filed by calling customer service or logging into online account to find claim forms.
Credit card benefits differ significantly from travel insurance policies purchased separately, in that credit card travel insurance may not cover preexisting conditions and has lower claim limits than purchased policies; it may even exclude some travel-related emergencies like terrorist attacks and inclement weather from coverage; read your card’s terms and conditions carefully to understand exactly what will and won’t be included.
Requirements
Credit cards with travel benefits can be an excellent addition to your travel planning, but it is important to understand their unique terms and conditions, which vary by card and provider.
Many credit cards provide travel accident coverage that covers cardholders and their immediate family in case of accidental death or dismemberment on covered trips, while emergency medical coverage provides financial coverage for unexpected medical costs such as hospitalization and ambulance services incurred while travelling on covered trips. Some cards also offer rental car coverage so you can opt-out of costly insurance policies offered by rental car agencies; and may provide coverage in case your personal belongings are stolen from one.
Credit cards offering travel benefits often provide trip cancellation and interruption coverage, which reimburses pre-paid expenses in the event that an unexpected event, such as inclement weather or terrorist activity, prevents you from travelling as planned. Some cards also offer baggage and lost/stolen item coverage which reimburses personal items that have been misplaced during travel.
Claims
Credit card companies frequently advertise the travel coverage offered by their cards to attract new customers, enticing them with appealing perks such as travel coverage options. But it is essential that consumers understand all of these perks thoroughly and compare any coverage provided through a card against purchasing separate travel insurance policies.
Specific features may differ by card, but travel credit card protection typically includes rental car collision damage waivers, emergency evacuation and trip cancellation insurance, medical expense coverage and more. To qualify, travelers must make nonrefundable trip costs such as airfare payments with their card while also remaining cardmembers while on their journey. Certain cards also limit this coverage for specific reasons such as severe weather, terrorist acts or jury duty obligations.
Credit card travel protection usually offers secondary coverage; that is, you must first file a claim with another entity such as your personal auto insurer or airline before your card’s coverage can kick in. This makes credit card travel insurance plans less attractive to people who frequently take multiple long trips each year using their card as payment.
