Most credit cards provide travel protections that include trip cancellation and interruption insurance, lost luggage coverage and other benefits; to qualify for these complimentary benefits, however, typically you need to purchase flights or hotels using your card, be in good standing as a cardholder at time of claim and make purchases using said card.
Credit card travel insurance doesn’t typically provide adequate protection for preexisting medical conditions or travel activities with risky activities; are credit card policies enough?
Cancelled Trips
Credit cards often offer trip cancellation and interruption coverage, which reimburses non-refundable travel expenses in case your trip is interrupted due to factors like severe weather or the death or injury of a family member. Specifics vary by policy but should clearly outline any unforeseen events covered under it.
Some credit cards provide rental car coverage that could cover costs associated with theft or damage; however, most travel protection policies don’t extend such protection to liability towards other drivers or passengers.
Credit card travel insurance perks might include refunding of unused airfare and hotel charges, accidental death or dismemberment coverage on common carriers and lost baggage protection. However, for travelers engaging in high-risk activities or traveling too long distances to cover with their credit card policy alone, purchasing an independent travel policy might be more suitable.
Lost or Stolen Baggage
Many travel credit cards provide some form of baggage insurance and mobile device protection that covers any devices lost, stolen, damaged or destroyed in your trip – this could include phones and tablets up to an agreed amount – either directly or as additional coverage for items covered under that plan.
However, this coverage should take second place to that offered by your airline or carrier responsible for transporting your bag. In fact, you may only receive compensation for items lost or stolen if a report was filed with them first.
Carefully reviewing your cardholder benefits guide and certificate of insurance is key when it comes to credit card travel insurance. While certain forms, like trip cancellation or interruption coverage, require using your card for certain purchases, others such as travel medical and road assistance cover more specific events and costs; in some instances, age or health requirements must also be fulfilled for this coverage to remain valid.
Medical and Evacuation Coverage
Credit card travel insurance offers comprehensive protection from incidents that could arise before, during, or after an international trip. Coverage offered varies by card and may be subject to certain restrictions.
Most credit cards provide coverage only if the collision damage waiver offered by a rental car agency is declined, while others include medical evacuation benefits that require certification by an attending physician that your condition warrants transportation home.
This type of coverage should only be seen as secondary and should not offer the same level of protection as a full travel medical plan. While most travelers find this an acceptable solution, those requiring comprehensive medical and evacuation coverage should look elsewhere. Likewise, coverage durations differ by card and may only provide limited elderly traveler protection – for this reason it’s vital that you read your card’s certificate of insurance before making a final decision about any given card.
Trip Delay or Cancellation
Credit card travel protections usually cover some or all of your non-refundable trip expenses in the event that a flight is cancelled due to severe weather or another covered cause, but may offer lower coverage limits than paid policies.
Additionally, credit card travel insurance policies may prohibit high-risk activities like extreme sports or travel to countries subject to government advisories as well as preexisting medical conditions.
Many credit cards also provide rental car collision damage waiver coverage, which will pay for damage or theft to rental cars but requires you to decline collision coverage from rental agencies in order to qualify. Although these coverages might seem useful, they might not meet all your travel protection needs, particularly if your vacation plans involve long or costly journeys. Experian’s Travel Guide can assist in matching you up with travel credit cards that offer comprehensive travel protections tailored specifically for you based on your individual travel requirements – learn more now.
