Travel insurance benefits offered by credit cards can help safeguard your trip while earning you rewards. Explore which cards offer coverage and whether or not the annual fee justifies its investment.
Though credit card travel protection may not provide as comprehensive a coverage as separate policies do, it still can cover essentials like lost luggage and cancellation of trips. Check our guide of credit cards offering travel insurance to find one best suited to you!
Trip cancellation
In the event that illness, injury, family emergencies or natural disaster prevent your planned travel from going as planned, credit card travel insurance with trip cancellation coverage could reimburse any non-refundable expenses and assist in planning alternative trips; additionally it could cover additional hotel and dining costs up to an annual maximum limit of $500 per day while waiting to depart.
American Express’ Platinum Card(r) offers various forms of protection, such as CDW for rental cars1. For more information about what coverage your card provides, refer to its Guide to Benefits or call the number on its back – for additional assistance call American Express’ Member Assistance Services number located on its back of card.
Most premium rewards cards offer some form of travel insurance coverage; however, its type and limits vary by card. To qualify for coverage on any trip using your card exclusively to pay purchases made using it; most policies only cover you and immediate family members travelling together; other policies exclude certain medical and travel-related expenses like emergency evacuation coverage.
Trip interruption
Planning to travel soon to celebrate an anniversary or just looking for an easy weekend escape? Travel rewards cards provide essential travel protections such as trip cancellation/interruption insurance, baggage delay coverage and collision damage waivers to help ease some of your costs. The top cards typically provide trip cancellation/interruption, baggage delay insurance and rental car collision damage waiver coverages to help offset some costs associated with traveling.
Some cards also provide comprehensive policies that offer coverage against terrorism in your destination country or death of an immediate family member back home; though the maximum reimbursement amounts, covered scenarios, and exclusions vary according to each card.
As well as these coverages, some cards offer assistance services that can help get your trip back on schedule if it becomes interrupted or cancelled. Still, experts advise supplemental travel insurance may be worth considering for some travelers – the premiums are often much less than anticipated and can provide peace of mind. Both Chase Sapphire Preferred Card and American Express Platinum Cards (terms apply) both feature benefits including trip cancellation/interruption coverage as well as luggage delay coverage and rental car collision damage waivers for added peace of mind.
Rental car insurance
Credit cards provide travelers with many travel protections, from trip cancellation and interruption coverage, rental car insurance and lost luggage reimbursement, but many come with substantial annual fees that must be considered when choosing one. It is crucial that travelers carefully compare available coverage and potential deductibles when selecting their card.
Chase Sapphire Reserve cards (see rates & fees) provide theft and collision damage coverage on eligible rental cars, saving you the cost of purchasing separate coverage at the car-rental desk. However, this card also comes with a $2,500 per person limit and $50 deductible fee.
Capital One Venture X Rewards Credit Card (rates & fees) also provides primary loss and damage coverage, but excludes ZipCar or similar peer-to-peer car sharing services such as Car2Go. Furthermore, only vehicles intended for four-wheel drive and seating capacities of nine or less are covered under this card’s travel protections; it also features trip delay reimbursement, emergency medical and dental coverage as well as travel accident insurance that pays out a lump sum should something happen while traveling on common carriers.
Emergency medical coverage
Certain credit cards offer travel medical coverage which stands apart or complements primary health insurance plans; such coverage usually provides emergency and evacuation benefits.
This type of coverage typically provides expenses related to illness or injury, transportation to and from hospitals that cannot treat these ailments, repatriation of mortal remains (although certain cards exclude this benefit), and coverage extends to cardholder, spouse and children traveling with him or her, as well as any common carrier fare that has been charged against his/her eligible credit card.
Credit card travel benefits may be beneficial, but they’re no replacement for comprehensive health insurance when traveling internationally. According to NerdWallet’s advice for anyone considering purchasing a premium travel card with extensive medical and evacuation coverage such as Chase Sapphire Reserve which offers excellent trip delay and lost luggage coverage but low maximum medical reimbursement limits.
