Credit card travel protections offer comprehensive protection at a more reasonable cost compared to standalone policies; however, coverage limits and exclusions vary by card.
Credit card travel insurance might be appropriate for your business travelers depending on their individual needs, and this article will explore some of the basics, such as trip cancellation/interruption coverage, primary collision damage waiver on rental cars and emergency medical assistance services.
Coverage for Trip Cancellation and Interruption
Credit card travel insurance typically comes equipped with trip cancellation and interruption coverage that reimburses a portion of non-refundable travel expenses if your plans are altered in any way, whether by severe weather patterns or an illness in the family that forces you to miss a family reunion. Depending on the policy in place, this protection could provide reimbursement in such instances as cancelled flights due to poor weather patterns, as well as missing an event because your grandmother falls ill before your scheduled reunion date.
Chase Sapphire Reserve provides this type of benefit that could reimburse up to $10,000 per person for nonrefundable and unused portions of their vacation if cancelled due to medical emergency or death in their immediate family. Before making purchases, however, be sure to carefully read their benefits guide so you understand exactly what coverage exists and the exact extent of it. Also provided should be contact numbers where you can reach a benefits administrator who can verify coverage as well as answer any queries you might have; most calls are free.
Baggage Insurance
Credit card travel protections will depend on the type of card and its features; premium travel cards often provide trip cancellation and interruption coverage as well as baggage delay insurance.
Credit card travel insurance protects prepaid expenses in case of cancellation or interruption due to inclement weather or medical emergencies, and reimburses for lost or damaged luggage while traveling on common carriers.
Common carrier liability coverage reimburses your expenses only when their negligence has caused loss or damage and other options have been exhausted, such as personal insurance policies or reimbursement policies from other sources (like travel insurers ). Its amount reimbursed each day can also vary, making this coverage not suitable as a replacement for more comprehensive baggage protection offered through additional travel policies such as those from travel insurers such as travel accident policies. Delayed baggage coverage works differently, covering expenses that arise while your bags have been delayed over six hours but only up to an imposed limit per day by insurance providers.
Travel Accident Insurance
Credit card travel insurance typically offers limited medical coverage. The Chase Sapphire Reserve card, for instance, provides up to $2,500 of medical transportation coverage; similarly, Capital One Venture X Rewards cards feature trip cancellation and interruption coverage, baggage loss reimbursement and rental car collision damage waivers but require an annual fee and deductible payment in addition to providing all these features.
Credit cards with comprehensive travel protections often serve as an ideal complement to purchasing travel insurance policies, which cover unforeseen events such as bad weather or health crises that could alter your plans. Deciding if additional travel protection coverage is necessary depends on where and when you plan to travel as well as costs involved with each trip and other considerations.
Emergency Medical Insurance
Credit cards provide travelers with various travel-related protections, from basic trip cancellation and interruption insurance to lost luggage reimbursement, rental car collision damage waivers and emergency medical evacuation and assistance services.
These benefits reimburse your prepaid and non-refundable expenses if a covered reason, such as severe weather or personal emergency, forces you to cancel or interrupt your trip. They typically also cover delays caused by common carrier failure and missed connections as well as providing coverage for unused excursions, meals and activities according to Allianz.
Though these perks may be useful, their coverage is typically limited in scope. For instance, most credit card travel insurance policies limit medical reimbursements to $2,500 in most cases; that is significantly less than mid-tier paid plans and does not cover preexisting medical conditions, high-risk activities or travel to countries subject to government advisories or conflict zones.
