An insurance-equipped credit card can come in handy should anything go awry during your trip, though coverage amounts and restrictions will differ between cards.
Chase Sapphire Reserve (rates & fees), one of the more popular choices available today, features comprehensive benefits such as trip cancellation/interruption coverage, lost luggage reimbursement and emergency evacuation coverage as well as rental car collision damage waivers.
Trip Cancellation and Interruption Coverage
Although no one plans on cancelling or shortening a trip, sometimes events arise that are beyond your control. With trip cancellation and interruption coverage on your credit card, you could get reimbursed for nonrefundable travel expenses should something such as a terrorist attack, illness or extreme weather force you to change plans.
Details may differ between cards, but typically these policies cover your trip’s nonrefundable pre-paid travel expenses and change fees. For instance, Chase Sapphire Reserve provides trip cancellation/interruption coverage up to $10,000 per covered trip.
Many cards that provide trip cancellation and interruption coverage also come equipped with other travel protections, including baggage delay reimbursement, lost luggage reimbursement and emergency evacuation and transportation coverage. For instance, the Bank of America Premium Rewards card offers these features along with trip cancellation and interruption coverage; coverage limits and exclusions may still apply, however.
Trip Delay Coverage
As well as cancellation and interruption coverage, some credit cards offer trip delay reimbursement insurance. This policy reimburses expenses associated with being delayed by common carriers (such as airlines, buses, trains or cruise ships) that you booked with the card you use – generally up to an amount per ticket purchased plus hotel/meal expenses. Policies vary between cards but most offer reimbursement up to a certain dollar limit per ticket booked plus accommodation/meal expenses incurred due to travel disruptions.
Chase provides coverage of up to $500 per ticket purchased, along with reasonable additional expenses if your travel is delayed more than six hours and requires an overnight stay. However, this policy excludes trips booked using prepaid passenger fares and only covers up to three people travelling together with them.
Most credit card trip delay policies require proof from your carrier, so make sure that any updates as delays arise are recorded. Claims can typically be filed by calling your card’s benefits and claims department or filling out an online form provided by them.
Travel Accident Insurance
Credit card travel insurance policies vary in coverage and terms, from trip cancellation/interruption and baggage delay coverage, to rental car rental collision damage waiver, personal accident coverage of up to $75,000 and more extensive options such as the Platinum Card from American Express’ primary collision damage waiver on rentals in both North America (up to $50,000 per rental car rental coverage) and personal accident coverage of up to $75,000.
Credit card insurance policies generally cover expenses charged directly to the card, with some policies excluding preexisting medical conditions and high-risk activities (for instance Capital One Visa Signature cards do not cover death or injury during parachute jumping, vehicular racing or sports events with cash prizes). Some policies do not offer medical evacuation services in countries with weak health care systems – it’s best to rely on separate travel insurance when traveling overseas but credit card travel insurance remains an excellent resource in case an unexpected incident arises on the road.
Emergency Evacuation Insurance
Getting from where you are to an appropriate hospital may be expensive in an emergency while traveling, as most health insurance policies don’t cover or limit how much will be covered for evacuation costs. Credit card travel protection benefits like those offered by Chase cards typically offer emergency medical transportation coverage up to a certain maximum benefit amount.
Other cards with no or low annual-fee options also provide some form of medical evacuation coverage — though often secondary. While such benefits can be more limited than what can be offered through companies like Medjet, they could still prove helpful for emergency evacuation scenarios.
Credit card travel insurance typically requires extensive paperwork in order to file a successful claim, including third-party verification that an adverse event took place and was covered under your plan. That’s why travelers looking for maximum preparation often opt for separate policies as backup.
