Travel insurance should be tailored to suit the unique needs and risks associated with each journey, although many credit cards offer trip cancellation coverage as part of their benefits packages.
These policies offer financial compensation if your trip is cancelled for qualifying reasons, reimbursing nonrefundable prepaid expenses in full. Learn more about this program which varies by card.
Cancel for Any Reason
Credit card travel cancellation insurance provides financial compensation in case your prepaid trip is cancelled due to unexpected circumstances, like injury or illness; however, this policy only covers expenses charged directly to the card and so points strategy coach Julie Menez of Geobreeze Travel advises purchasing an all-encompassing policy as an addition.
Most cards offer trip cancellation and interruption coverage, though coverage amounts differ by card. American Express’s Platinum Card, for instance, covers up to $10,000 per covered trip and $20,000 total annually in addition to travel accident insurance coverage.
Some cards, like Mastercard’s World Elite Mastercard, provide additional benefits like medical emergency evacuation coverage to cover some or all of your costs if a flight home due to illness or injury becomes necessary. Other policies, like Chase Sapphire Reserve’s Cancel for Any Reason feature, allow cancellation for reasons not covered under standard cancellation (such as fear of travel) and receive 50-75% reimbursement of non-refundable trip expenses.
Trip Delay
Credit cards that provide comprehensive trip delay coverage can help you avoid expensive expenses when your travel itinerary gets disrupted by an airline or travel issue. Specifics depend on which card is chosen; most insurance programs reimburse expenses such as hotel stays or meals when your itinerary is delayed more than an agreed upon period.
Typically, the most attractive policy terms for this benefit set a time threshold between six to 12 hours; some cards even feature maximum reimbursement limits per day. You may need to file a claim in order to be reimbursed.
Benefits like these can make all the difference when traveling – they can mean the difference between an interminable airport wait and a swift return home. While we hope none of us need them, having such protections in place can soften any blow that arises should your trip be cancelled or interrupted, as well as help offset more expensive travel rewards cards with higher annual fees.
Baggage Delay
Imagine arriving at baggage claim after a long flight to find one of your two suitcases has vanished without trace. If your credit card offers travel delay coverage (some cards offer it while others provide it through third party insurance), travel delay reimbursement benefits could provide reimbursement for toiletries and clothing while you await for it to return – though these benefits usually only become available once you have informed both the airline and yourself of its disappearance and filed a report with them.
Credit card baggage delay coverage may be convenient, but investing in travel insurance that covers more than just bags lost or delayed may be better. Compare the coverage limits available through credit cards with those available through premium policies to assess whether extra protections justify paying an annual premium fee.
Medical Emergency
Credit card travel protection policies offer many advantages to their users. These benefits may include trip cancellation and interruption insurance that reimburses up to a certain amount for nonrefundable expenses (prepaid travel expenses such as airfare), baggage delay coverage and medical emergencies while traveling overseas. In order to qualify for these features, most policies stipulate payment with an eligible card along with fulfilling other criteria outlined by their policies.
Notable exclusions for most credit card travel coverage include high-risk activities like participating in extreme sports and traveling to areas subject to government advisories or conflict zones, as well as benefits that are restricted for travelers with preexisting medical conditions.
Travelers looking for comprehensive protection beyond what a credit card provides can purchase third-party travel insurance plans such as Atlas Journey. While prices vary depending on which plan is chosen, most plans typically provide similar features as credit card coverage and are backed by AIG, one of the industry’s leading insurers. Find out more and obtain quotes online now.
