Credit card travel insurance provides travelers with an invaluable safety net; however, not all cards offer comprehensive coverages.
The best travel credit cards offer many attractive perks, such as trip cancellation protection, baggage loss/delay coverage and emergency medical assistance, but it’s wise to compare coverage limits and exclusions carefully before selecting one.
Trip cancellation and interruption insurance
Credit cards often offer trip cancellation and interruption insurance as one of their standard benefits, covering your prepaid travel expenses in cases such as medical emergencies, job loss or severe weather that necessitate cancellation of trips.
Most card issuers offer slightly different policies, but generally speaking these benefits reimburse non-refundable travel purchases made using your card if you must cancel or cut short your trip. In addition, terms and conditions often contain exclusions such as preexisting medical conditions that preclude these benefits.
Premium travel credit cards often include this coverage along with other travel benefits, like rental car coverage and delay reimbursement. But if the limits and terms of your card’s insurance policy don’t provide sufficient protections or you need extra safeguards, purchasing an independent travel insurance plan might make more sense – these plans typically cover multiple expenses as well as providing benefits like primary medical and evacuation coverage.
Baggage insurance
Travel protections from credit cards can offer peace of mind when traveling abroad, yet often come with limitations and exclusions that must be read carefully in order to make an informed decision. For instance, some cards only cover damage done while you have possession of the rental car; losses incurred as a result of theft won’t be reimbursed by them.
Other limitations could include what items are covered by baggage insurance, which provides reimbursement if your luggage is lost or delayed while travelling. Unfortunately, this coverage often excludes expensive electronics covered under homeowners or renters policies as well.
Consider the Chase Sapphire Preferred(r). With its comprehensive travel protections like trip cancellation and interruption coverage and rental car collision damage waiver, as well as valuable rewards such as Ultimate Rewards points that you can redeem for cash back, merchandise purchases or airline/hotel stays, it offers an appealing set of advantages.
Rental car insurance
When renting a car, rental companies often offer add-ons and protection plans you can purchase, but by paying with certain cards you might be able to skip some of this additional coverage and save yourself some cash.
Credit cards often offer rental car coverage that works alongside your primary auto or travel policies, extending coverage beyond what’s covered under their primary coverage limits. However, these policies typically have long lists of exclusions and may require that you file a claim with both insurers before filing it with this one.
More comprehensive primary rental car insurance policies are also available, and several of our top rewards cards provide this feature – for instance the Chase Sapphire Preferred, Reserve, and Venture X Rewards cards offer this coverage. It may cover damages to the vehicle itself as well as theft and collision – however this only applies when renting using that particular card and paying with that same card.
Emergency medical coverage
Credit card travel insurance can help protect against financial catastrophe should an unavoidable event arise during your trip. Furthermore, this form of protection often offers extra coverage which standard health or auto policies don’t, such as medical evacuation or rental car damage protection.
Benefits provided by these cards vary, so carefully read their terms and conditions to determine whether it fits your needs. In general, to activate coverage with one of these cards, charge expenses that qualify as covered expenses to it, and follow all necessary claim procedures – often documentation from third parties of adverse events must also be presented in order to file claims.
The Chase Sapphire Reserve offers comprehensive travel insurance coverage, such as trip cancellation and interruption insurance for common carrier airfare; trip baggage insurance; travel accident coverage; and medical evacuation coverage that reimburses up to $2,500 per person for illness or injury when more than 100 miles away from home, repatriation expenses or funeral arrangements in some instances.
