Many credit cards offer travel protections, though the type and terms can differ between cards. Some provide trip cancellation insurance while others only cover medical or emergency evacuation coverages.
Understanding travel protection on credit cards can be complex, so knowing more can help you select a card best suited for you. This guide compares top credit cards for travel protection.
What’s Covered?
Many credit cards now provide travel protections at various levels, though the specific benefits and terms differ between cards. Therefore, when applying for one with travel insurance coverage it’s essential to compare its welcome bonus, earning power and annual fee to ensure that adding it to your wallet will be worth its cost.
Credit card travel protection policies typically only cover expenses you charge to that card and that fall under its terms; so purchases likely to be affected by trip delays or cancellations should likely be covered, while extravagant expenditures such as buying a laptop might not. Here is a look at what some of the top credit cards with travel insurance coverage offer:
Cancel for Any Reason
Credit card travel protection coverages offered by some cards can be invaluable, yet they’re different than stand-alone travel insurance policies in several ways. Most credit card protection only covers cancellation for limited reasons (like illness, weather or terrorist incidents or jury duty); travel insurance typically provides much wider coverage such as preexisting medical conditions with higher benefit limits and coverage for other travelers on the same trip.
Consider these key aspects when selecting the ideal credit card travel protections: welcome bonus, earning power and annual fee as well as car rental coverage or airline lounge access perks. Always read carefully through any terms or conditions associated with credit card travel protection coverages to make an informed decision.
Medical Expenses
Some credit cards with travel protection feature coverage for unexpected medical emergencies while abroad. This typically covers expenses related to ambulance services, hospitalization and prescription medication expenses as well as costs such as ambulance fees. Some cards even provide rental car protection that reimburses travelers should their rental vehicle be stolen or damaged during their trip.
Other travel card benefits include trip cancellation and interruption coverage, which allows travelers to recoup the costs associated with eligible nonrefundable bookings made during travel insurance cover for certain circumstances (such as contracting COVID-19).
Finally, some cards with travel protection also include travel delay coverage that reimburses you for meals and hotel costs if your transportation is delayed by six hours or more; however, standalone policies provide more comprehensive protection in such scenarios; which option you choose ultimately depends on your coverage goals and budget.
Lost or Stolen Baggage
Most credit cards provide baggage insurance coverage; however, its exact terms can differ significantly. Some cards only cover loss or damage to checked luggage; others cover both carry-on and checked bags; still others offer maximum payouts in case your baggage goes missing that supplements any existing coverage such as homeowners or renters policies.
Smart travelers understand that when it comes to credit card travel protections, their exact needs depend on their travel and spending patterns. To identify which coverage best meets your needs, compare credit cards offering travel benefits based on rewards, fees and insurance benefits; then decide if an annual fee for such protection would justify its use or whether an independent policy would suffice.
Rental Car Coverage
Credit card travel protections do not replace traditional travel insurance policies, but they can still provide valuable coverage in specific situations. For instance, should an illness, storm, or terrorist act cancel or interrupt your trip, some cards offer reimbursement of nonrefundable expenses.
Credit cards that offer car rental collision damage waiver can help save you money if you decline the rental company’s own coverage. Premium cards may even offer primary coverage that won’t increase your personal auto insurance premiums.
Before selecting credit cards to add to your wallet, be sure to understand each card’s benefits and perks so that you can select ones with maximum earning potential and travel benefits.
