Many credit cards offer travel protection, though their coverage varies according to card. For instance, certain cancellation policies only cover trips cancelled for specific reasons.
Some cards have very specific geographic coverage exclusions; if your policy includes numerous exclusions and fine print, consider purchasing an independent travel insurance plan as a supplement to the card policy.
Cancel for Any Reason (CFAR)
Cancel for Any Reason travel insurance is available as an upgrade on most comprehensive policies, offering reimbursement of 50-75% of insured pre-paid trip costs when certain parameters are met. While adding this coverage may increase your premium costs, sometimes having peace of mind is worth its weight in gold!
CFAR can reimburse for reasons not covered by your standard trip cancellation coverage, such as Covid-related fears, changes to travel guidelines or family emergencies. It can even cover unexpected circumstances like the death of an immediate family member or an attractive job offer too good to pass up.
Though CFAR may provide flexibility during uncertain times, be mindful to understand its parameters and exclusions before making your decision.
Trip Delay
Trip delay reimbursement coverage is a popular feature among travel credit cards, such as Chase Sapphire Reserve travel insurance. For example, it reimburses expenses incurred when your flight purchased or booked using this card on any common carrier (such as airlines, ferry operators, passenger railroads or long distance bus service) is delayed more than six hours or requires an overnight stay – it covers cardholder, spouse/domestic partner and immediate family members under this policy. Ensure your policy details outline what exactly is covered as well as any possible limitations.
Consider any restrictions, such as requirements that you charge the full ticket cost or book through a certain travel agency to activate this benefit. Also keep track of receipts for expenses you claim reimbursement on; doing so will speed up processing times for claims. Lastly, evaluate if your card’s travel assistance services offer protection in cases like lost luggage or unexpected medical emergencies.
Trip Interruption
If your trip is disrupted for any of the covered reasons, your card may reimburse some of the costs associated with returning to your destination. Note that this coverage exists separately from and in addition to cancellation/interruption benefits typically found within most credit card travel insurance plans.
Intelligent travelers typically invest in their own standalone travel insurance policy; although this may cost more, it often provides more comprehensive protection.
Travel insurance policies often cover medical emergencies overseas that credit cards do not, while offering far more trip interruption and cancellation coverage than what credit card programs typically provide. Premium travel insurance may even cover activities like scuba diving which typically don’t fall within credit card protection programs’ ambit. Finally, they usually include protection for friends and family travelling alongside cardholders that is usually excluded by these plans.
Medical Evacuation
Medical evacuation coverage can come in handy in an emergency. If a physician onsite advises transport to another nearby destination for treatment, typically with accommodations and meals included onboard the flight home from abroad. Some policies even offer repatriation benefits for transporting deceased relatives back home to America.
Medical Evacuation Insurance differs significantly from standard travel insurance policies in that it often features higher claim limits than credit card travel protections. It can either be sold individually or packaged together as part of a comprehensive travel or medical plan.
Your insurance can often be purchased either through an independent third-party marketplace or directly with the insurance provider, and its cost will depend upon what policy type and amount of coverage you select – typically, more expensive policies provide greater coverage.
