Many travel credit cards offer some form of travel insurance coverage for flight delays, trip cancellations and lost luggage – up to $2,500 of medical reimbursement and rental car collision damage protection is often available as well.
Before making a decision whether or not to use a card with travel insurance or purchase a separate policy, it’s essential to carefully evaluate any available limits and exclusions.
Choosing a Card
To select the optimal credit card for travel insurance, it is essential that you review available coverages and annual fees of each card before comparing coverage limits, such as maximum limits per type. This information can usually be found within your benefits guide or reviewing terms and conditions of each credit card provider.
Credit cards typically offer built-in travel protection that may cover some expenses related to your trip, but this might not provide comprehensive protection. Therefore, it is wise to evaluate your trip planning needs and explore standalone policies with more extensive coverage for medical emergencies, luggage loss or any other mishaps that might occur on vacation.
Many premium travel rewards cards feature comprehensive built-in travel protection features. Coverage levels will differ between cards; typically, higher annual fee cards such as Chase Sapphire Reserve provide extensive protection benefits that cover COVID-19 related travel expenses as well as trip cancellation and interruption costs.
Basic Coverage
Credit cards provide travelers with numerous protections, such as trip delay reimbursement, rental car damage insurance and travel accident protection. Cards with higher annual fees typically provide the most comprehensive coverage.
Note that credit card travel protections may exclude certain activities, like scuba diving and hang gliding, so policy documents should clearly list which are covered and which aren’t.
As well as trip cancellation and interruption insurance, credit cards often provide baggage loss and delay insurance, medical evacuation insurance and severe weather evacuation insurance policies to cover you when travelling abroad. Be sure to review whether these coverage options meet your travel needs adequately – if not consider purchasing separate policies. Many credit cards also offer other perks like airport lounge access, concierge services, travel discounts or discounts to offset their annual fee.
Extensive Coverage
Credit card companies provide their cardholders with various insurance benefits, which typically includes trip cancellation and interruption insurance; primary rental car collision damage waivers; travel accident coverage, lost luggage reimbursements and emergency evacuation and transportation coverage. The specific coverage varies by card but usually includes trip cancellation and interruption coverage, primary rental car collision damage waivers; travel accident insurance; lost luggage reimbursements as well as emergency evacuation and transportation coverage.
Few credit cards provide access to roadside assistance services, which can be an immense help when traveling in unfamiliar territory. Such services can include towing, jump starting, lockout service and fuel delivery for cars, SUVs and trucks; typically these benefits apply only to cardholders themselves and exclude caravans, campers or trailers.
Some cards also provide medical and dental insurance while others cover cruises, tours, rideshare programs and other forms of travel. Before making your purchase, be sure to carefully evaluate the limits and exclusions of each card’s coverage; its benefit guide provides valuable insights. Coverage amounts differ by card depending on factors like your purchase type and amount charged – coverage amounts also depend on where and when it was made.
Supplemental Policies
Travel credit cards often offer additional policies to enhance other insurance plans you may already possess, including rental car coverage that reimburses for some of the costs of replacing or repairing a damaged vehicle, and trip cancellation and interruption coverage which reimburses pre-paid expenses in case your trip must be canceled or interrupted due to eligible reasons. These perks vary by card and policy – please read carefully when signing the agreement before signing it!
To take advantage of travel benefits provided by credit cards, typically flights and transportation must be booked using them to qualify. Many also require that any expenses related to your trip be charged on to it before any insurance reimbursements can be issued; some cards exclude certain activities like scuba diving and hang gliding from coverage altogether; those seeking more comprehensive protection should consider purchasing standalone policies, which often offer coverage at much more reasonable costs than premium travel cards.
