Credit cards that provide comprehensive travel protections often provide travelers with value in return for the annual fees, though their coverage may be more limited in scope, deductibles and coverage amounts than an independent policy would offer.
Few credit cards provide “Cancel for Any Reason” upgrades or comprehensive emergency medical coverage.
Trip Cancellation
Travel cancellation can happen for various reasons, but credit card protection can provide assistance. Some cards offer trip cancellation and interruption coverage that reimburses non-refundable expenses such as airline tickets, hotel stays and tours in case they’re cancelled due to illness, severe weather or work obligations.
To qualify for this benefit, typically you must make full payment on your credit card; however, National Bank’s World Elite Mastercard offers coverage even when only partial payments have been made. In general, policy terms limit cancellation reasons to job loss, school year extension, inclement weather or jury duty only; unlike travel insurance which typically provides coverage against more diverse events.
Trip Interruption
Trip interruption insurance works similarly to trip cancellation coverage, except it reimburses for unexpected events that arise after your departure date. For example, this would cover expenses if something like medical treatment or jury duty prevented you from continuing your trip as planned.
Protection plans such as this one can be found within many credit card benefits programs, although each issuer’s policies vary slightly; to make the most out of your coverage, always read your card issuer’s policies carefully before purchasing their products. Some cards also offer this coverage in combination with trip cancellation protection – meaning if your trip needs to be cancelled for covered reasons, all travel expenses up to the maximum covered amount will be reimbursed (though physical documentation and proof may be required to receive reimbursement).
Baggage Delay
Some credit cards provide baggage delay coverage, which reimburses cardholders for essential items they require while their checked bags are delayed by airlines for an extended period. It typically kicks in once an airline has delayed your checked bags beyond what might be covered under other policies such as homeowners insurance.
Losing or delaying luggage can wreak havoc with your travel plans, which is why many premium travel cards, like Chase Sapphire Reserve and World of Hyatt Credit Card, include baggage delay coverage. This benefit provides up to $100 a day for five days if it takes six hours or longer for your luggage to arrive; additionally it reimburses any items found missing such as toiletries or clothing from the suitcase.
Rental Car Accident or Loss
Credit cards that provide rental car insurance offer primary coverage, meaning accidents won’t fall under your personal auto policy’s umbrella. This makes these credit cards far superior to additional coverage offered by rental car companies which typically come with deductibles and exclude certain vehicles or countries altogether.
But remember, credit card car rental protection won’t address liability issues related to damage done outside the vehicle itself, such as injury claims from people you cause and property damages other than what was expected by you or anyone you hurt – these issues typically are covered by auto and homeowners policies. Also worth keeping in mind is that many credit card car rental benefits become secondary coverage if you decline the rental company’s collision damage waiver (CDW); this is especially applicable when renting cars overseas.
Emergency Medical Evacuation
Medical evacuation coverage provides transportation to an “appropriate” treatment center if doctors determine that you’re untreatable in a foreign country or that your condition requires emergency transport home. You could find such coverage either as part of a comprehensive travel insurance policy (which typically include cancellation, interruption and baggage coverage) or as a stand-in travel medical policy.
Many premium credit cards provide real, tangible travel protections. You should review coverage limits and annual fees before selecting a card that best meets your travel planning goals. Medical evacuation benefits typically cover only costs associated with getting you to a qualified facility; however, some policies also cover your children’s return flights should they accompany you when hospitalized as well as other benefits.
