Credit cards typically offer travel protection features like medical and trip cancellation coverage; however, these benefits tend to be more limited and less comprehensive than standalone travel insurance policies.
Make sure your card offers and has adequate cover, along with its limits and requirements. Check your complimentary insurance product disclosure statement for information like age restrictions, exclusions and requirements.
How much coverage do you get?
Credit card travel insurance can be an underappreciated perk that can save you from unplanned travel misadventures. Most policies include coverage for emergency medical assistance, lost baggage and rental car damage – though each policy varies – it’s important to know exactly what level of coverage each policy provides so you know if a credit card or standalone policy would best meet your needs.
Travel insurance options can be limited for seniors. Most cards provide up to 15 days of coverage for travellers under 75; once this threshold has been crossed it becomes harder and harder to find adequate protection.
National Bank World and World Elite Mastercards as well as Desjardins Odyssey World MasterCard offer up to 15 days of travel insurance for travellers aged 65+. Be sure to read your card’s complimentary insurance PDS (product disclosure statement) carefully for specific information regarding age restrictions, exceptions and coverage.
What are the limitations?
Credit card travel insurance policies often come with certain restrictions you should keep in mind. For example, most card providers only offer trip cancellation coverage in specific situations – for example catching or contracting diseases such as COVID-19 which might prevent you from travelling during your planned journey.
Some card providers impose age restrictions for coverage. Others require you to charge a certain amount to the card in order to activate coverage, while still others have look-back periods where medical history reviews take place and any preexisting conditions may not be covered.
We suggest that anyone who relies on their credit card’s complimentary coverage to consider purchasing their own policy, as it often provides more coverage at more reasonable costs. Although a traditional travel insurance plan might seem costly at first, you could save money overall with proper protection in place for their trip.
What if I have a pre-existing condition?
Credit card travel insurance offers can be attractive to frequent travellers, yet their fine print tends to limit pre-existing conditions as you get older – and this restriction only becomes tighter over time.
Example: If you went to your family doctor four months prior to traveling with chest pains and were treated, this preexisting condition might prevent card coverage – that’s why it’s vitally important that when applying for insurance policies you always reveal all known issues such as preexisting medical issues.
Many travel insurance providers provide coverage for preexisting conditions if they’ve been stable and no treatment received in the last 60 days prior to starting your trip, though often at an additional cost. Therefore, it’s wise to compare costs and coverage offered on cards with standalone policies; you may find that paying more may well be worth your while for peace of mind.
How do I know I’m covered?
The top credit cards with travel insurance offer comprehensive protection, such as emergency medical, trip interruption/cancellation/and car rental collision damage coverage. In general, you’ll need to charge at least 75% of your trip costs in order to qualify. Some card providers require taking an exam prior to making a claim while others will look at your past medical history or preexisting conditions before considering making their decision.
As you approach 65, age restrictions on complimentary credit card travel insurance may become restrictive. While some cards will provide coverage of 15 days or less, others might only allow purchase prior to turning 75.
Individual travel insurance policies tend to be much less expensive than credit cards with built-in travel insurance coverage, making them an economical and accessible way to cover your trips in 2019. When planning out your 2018 trips, take time to look at all your protection options to determine the ones most suited to meet your budget and needs.
