Credit card travel insurance may provide useful cover before, during and after a trip – however it often doesn’t offer as comprehensive a solution as an owned policy would.
To decide if a card’s travel coverage meets your needs, learn what it covers and compare coverage limits against travel costs. Also make sure that there are any limitations or exclusions to the policy.
Trip cancellation
Credit card travel insurance policies with excellent cancellation and interruption coverage often offer reimbursement of non-refundable prepaid expenses due to covered reasons, should these cause you to change or cancel your plans. Usually, to file a claim within 90 days of discovering it.
Some cards may require that your trip be booked prior to a natural disaster or other event in order to qualify for coverage, so always read and understand all policies carefully before making a commitment. Look out for terms like reimbursement limits, types of losses covered, inclusion or exclusion of other travelers on your itinerary as well as whether your pet is included.
The table below lists several top cards with this benefit. Please consult their Guide to Benefits for specific coverage amounts and limitations; The Chase Sapphire Reserve card stands out as providing generous maximum reimbursements and excellent coverage terms.
Trip delay
Credit card travel insurance provides protection in case of unexpected delays and cancellations, rental car collision damage coverage, emergency evacuation transportation coverage, lost luggage reimbursement and 24/7 global assist service.
Trip delay coverage is an integral benefit included on many of the best cards, but its scope and maximum reimbursement vary from card to card. Chase Sapphire cards stand out with an ancillary benefit that reimburses up to $500 per ticket if your common carrier (airline, bus, train or cruise ship) experiences a delay of 12 hours or longer.
Citi Prestige Card and American Express Business Platinum Cards also offer this protection, providing up to $500 of reimbursement for meals and lodging as well as other out-of-pocket expenses if transportation delays due to covered unforeseen circumstances are delayed. Most cards offer delayed luggage reimbursement which typically pays out an amount per day that your luggage remains delayed by its common carrier.
Trip interruption
Imagine being on a family vacation to Walt Disney World when an immediate relative back home dies, forcing you to cut short the trip due to circumstances out of your control. Some credit card travel insurance policies, like Chase’s, will reimburse you for the portion of the trip that wasn’t used due to an insured event such as this one.
Credit cards often offer comprehensive travel coverage with specific exclusions and losses covered, so it’s wise to read all of their fine print before using this coverage. Still, credit card policies tend to be much cheaper than purchasing standalone policies or paying an airline or third-party additional insurance premiums.
These cards provide optimal protection from travel-related issues such as trip cancellation and interruption, delay reimbursement and rental car coverage. Some also feature 24/7 global assist to provide assistance should an emergency arise during travel or otherwise. Select one that provides comprehensive protection at an annual fee you pay.
Rental car coverage
Credit card rental car coverage is one of the more commonly offered travel protections. It can reimburse you up to your card’s policy limit for damage or theft to any rental cars that fall within its coverage, according to Worters. But it is essential that travelers understand exactly what this coverage entails before making decisions based on it, according to Worters.
Credit cards typically offer what’s known as collision damage waiver (CDW) or loss damage waiver (LDW), a form of coverage to help cover the costs associated with damage to or theft of rental cars. Some cards also cover towing expenses and administrative fees associated with renting them out.
Credit card CDW/LDW coverage may vary by card and may contain restrictions that limit rentals outside the US; some policies exclude rentals in Australia, Israel, Jamaica, Italy and Ireland for example. It is advisable to contact your card company beforehand in order to gain more insight into this coverage – some rental car agencies also incorporate partial liability protection into rental fees.
