Many credit cards offer travel insurance policies to cover expenses incurred on trips. Benefits depend on your card of choice and could include flight accident coverage, secondary car rental coverage and medical coverage for emergencies while traveling.
The best travel rewards cards typically include comprehensive insurance protections, such as trip delay coverage and lost luggage reimbursement. However, the exact terms and conditions of each benefit may differ depending on which card is chosen.
Trip cancellation
Credit cards with trip cancellation insurance could reimburse your prepaid travel expenses (such as airfare and hotel reservations) should your trip be canceled or cut short for reasons such as illness, job loss, school year extension, mandatory evacuations or terrorism.
However, it’s essential to read the fine print because there may be restrictions or exclusions with this coverage. For instance, American Express requires you to charge all common carrier fare on their credit card before their policy kicks in, while Chase only covers family members traveling together.
Most cardholders receive from $1,500 to $10,000 of coverage per trip, helping cover some costs when unexpected events arise. See the table below for some top credit cards that offer travel protection – along with their coverage details and terms (limits, definition of family membership etc).
Trip interruption
No one wants their travel plans derailed by unplanned circumstances such as illness, severe weather or family emergencies – such as illness, severe weather and family emergencies – which is why some credit cards offer trip cancellation and interruption insurance that covers such expenses as long as purchases made with that card fall under its policy’s coverage. To find out if your card offers this protection, check its Guide to Benefits.
Most top rewards cards offer trip interruption coverage; however, maximum coverage amounts and eligible expenses may differ between cards. For instance, Chase Sapphire Reserve card provides up to $10,000 per trip and $20,000 annually in benefits against cancellation or interruption caused by covered reasons like sickness, jury duty or weather; this coverage doesn’t extend to voluntary cancellations or costs related to travelling against medical advice – be sure to read your policy thoroughly to determine if this one meets your needs!
Rental car coverage
Many credit cards offer rental car coverage as part of a secondary plan that kicks in after your own personal auto policy and coverage from the rental agency has taken effect, although some premium cards also provide primary rental car protection that may be cheaper than paying at the counter each day.
If your credit card offers this benefit, make sure that you read all the fine print to ensure you are receiving maximum value from it. Keep in mind that coverage for exotic or antique cars, cargo vans and limousines might differ, while coverage might not extend to rentals outside the U.S.
If you opt for credit card rental car coverage, consider opting out of collision damage waiver and loss damage waiver offered at the car rental company and instead paying your daily rate via card instead. NerdWallet analyzes credit cards to identify those which offer the most advantageous travel protections.
Medical coverage
Credit cards that provide medical coverage can help make sure an unexpected health emergency doesn’t derail your trip. This benefit generally serves as a supplement, covering expenses that exceed existing coverage; this is particularly valuable when traveling internationally where standard policies might not cover expenses incurred during medical emergencies.
Many credit cards also provide rental car coverage that can save travelers money. This coverage usually applies when they reserve and pay for their rental car using their card, decline the rental company’s collision damage waiver option and adhere to their card’s terms and conditions.
Before applying for a card with travel benefits, make sure you consider which types of protection you need. Depending on the card in question, comprehensive coverage could include financial security for lost luggage and unexpected flight delays; while limited plans might include cancellation and interruption insurance and medical evacuation assistance. You can also buy standalone travel protection plans at a fraction of the cost.
