Many credit cards provide travel protections, although the policies can differ significantly. Some can be found buried deep within a benefits guide you may have mislaid while others can be accessed online through your account.
Determining if credit card travel insurance policies are worth it ultimately boils down to your risk tolerance and the following questions will help you understand how they operate:
What is coverage?
Credit card travel insurance provides reimbursement of expenses caused by flight delays, health problems or weather events that interrupt your trip. Policies differ among cards, however; and terms can often be confusing. For instance, many cards that provide trip delay coverage only offer reimbursement if your transportation delay lasts 12 hours or longer and some set maximum reimbursement amounts; similarly medical coverage on credit cards usually only pays after your primary health plan has paid out and not all plans cover foreign healthcare coverage.
Though you should investigate which cards offer the most suitable travel protections for your needs, premium cards often offer more robust coverage in terms of lost luggage, rental car insurance and emergency evacuation assistance than no- or low-annual-fee cards; yet some lower fee cards still offer useful benefits, like primary car rental coverage. Most credit card companies work with third-party insurers to process claims; you should find information regarding coverage in either your policy benefits guide or online.
What is secondary coverage?
Most credit card companies enlist the services of an outside vendor to assist them with travel insurance claims processing, with claims submitted either online or over the phone. It is crucial to have all documents organized and keep a detailed expense log for optimal claims processing results.
Credit card travel protection policies typically contain many details and vary between cards. For instance, some provide secondary rental car coverage while others may provide primary (which requires you to file through your auto insurer first) coverage. Your card’s Guide to Benefits should detail exactly which circumstances each coverage applies – Chase Sapphire Reserve for instance lists “quarantine imposed by medical professionals or government authorities due to health reasons” as a covered reason under its Trip Cancellation & Interruption policy while Capital One Quicksilver Cash Rewards Credit Card excludes this coverage from its coverage policy.
What is primary coverage?
Credit card travel insurance can be an invaluable benefit, but it’s essential that travelers understand its intricacies before filing a claim. Policy details vary widely across credit cards and can quickly become complex.
Some cards provide trip delay, cancellation and interruption coverage, while others may include car rental, lost luggage and medical coverage. Premium credit cards that charge annual fees typically provide comprehensive travel protection while no-annual-fee credit cards may offer basic roadside assistance coverage.
Some cards provide “cancel for any reason” coverage, which reimburses some or all non-refundable expenses should your trip be cancelled due to a covered incident. To qualify for such coverage, however, the trip must have been purchased with and paid for on your card with at least $500 worth of goods or services charged against it; most travel credit card policies typically have minimum delay protection requirements (typically 6 hours before reimbursement caps apply) that must be fulfilled in order to avail themselves of these policies;
What is deductibles?
Many credit cards include trip-related coverage as cardholder perks. It’s essential that cardholders understand their coverage limitations and fine print when using these benefits; some only cover cardholder and selected relatives traveling together while other policies cover quarantines from physicians or competent governmental authorities due to health reasons as covered events; for instance, Chase Sapphire Reserve states this event under their travel insurance policy.
However, travel protections provided by cards may only cover specific expenses related to delays and cancellations – such as hotels and meals – while additional travel insurance policies offer primary coverage. Keep in mind that some card-based travel benefits are secondary, meaning you must first file a claim with your auto or home insurer in order to receive reimbursement – particularly rental car coverage, emergency evacuation transportation expenses and medical expense coverages.
