Credit card travel insurance protects travelers against an array of potential hazards before, during, and sometimes after their journeys. Coverage varies by card issuer and ranges from secondary rental car coverage to emergency evacuation support.
Most cards offer benefits like trip cancellation reimbursements and lost luggage coverage; however, other restrictions may apply.
Coverage
Credit card travel insurance typically provides protection from cancellation, interruption and delay; lost luggage; emergency medical expenses; rental car collision damage and any associated repairs; however the coverage amounts, exclusions and requirements can differ significantly between cards.
To activate these benefits, travelers generally must pay for all trip transport (flights, cruises and package tours, train tickets or bus passes) with the covered card. Depending on which card they hold, travelers may also have to decline rental car company’s collision damage waiver at counter.
Coverage for natural disasters varies, though most policies exclude loss or damage caused by hurricanes. Many cards also provide limited coverage for preexisting medical conditions, maximum age limits and trips longer than 60 days; other policies provide higher limits for adventure activities like scuba diving and hang gliding if these limitations become an issue. If this is something that concerns you further, purchasing an individual policy might be wiser – read your card’s benefits guide for more details about its specific protections offered on each card.
Exclusions
Card issuers implement various restrictions and exclusions into their travel protection policies, for instance excluding coverage for preexisting medical conditions (unless purchased as part of a separate policy) while generally most cards offer trip cancellation and interruption insurance in the range of $10,000 per trip and $20,000 over 12 consecutive months; some cards also provide car rental collision damage waivers (CDW), potentially covering eligible cars up to $5,000 in damages.
To qualify for most credit card travel insurance policies, you must purchase your trip transport with the card and still be an active cardholder when filing a claim. Most policies only cover cardholders and their immediate family members at claim time; some exclusions include high-risk activities like extreme sports or travel to countries subject to specific government advisories/conflict zones as well as emergency medical care – these terms and conditions will differ between cards; to learn more read your cardholder agreement.
Requirements
Credit card travel insurance can be an invaluable perk, helping travellers solve issues that would otherwise require costly solutions. But coverage varies greatly between cards issued by the same issuer – before making plans based on this protection, make sure you read your card’s benefits guide or call its number on its back for up-to-date details about coverage limits, exclusions and any other pertinent details.
Credit card travel insurance typically offers coverage for trip cancellation or interruption, lost luggage and rental car damage; it usually does not extend to preexisting medical conditions; therefore it may be beneficial to purchase an individual policy as a supplement to credit card coverage. Also of note is the lack of family traveler coverage by most travel credit cards – an essential consideration if traveling often with others.
Claims
Credit card travel insurance can be helpful in certain circumstances, but it’s essential that you consider exactly how much coverage is offered by each card – some cards limit what coverage they offer specifically in regards to baggage loss and trip cancellation.
Some cards only provide coverage when used for eligible purchases using that particular credit card; others require you to decline rental car company collision damage waiver in order to activate its insurance benefits; still others don’t cover items carried on your person, such as smartphones or laptops.
Credit card travel insurance policies typically exclude certain medical treatments and travel to countries deemed unsafe by the federal government, so considering an independent travel policy might be worthwhile. Still, credit card travel insurance can provide an affordable solution to problems which might otherwise incur expensive expenses or missed vacation opportunities.
