Perks of Credit Card Travel Insurance

While many people decide which credit card to carry based on things like new card member bonuses and ongoing rewards, there are a number of unsung benefits that are sometimes included with credit card membership that can be extremely valuable. Travel insurance coverage, which can come in very handy in the case of a travel-related issue, is one of these lesser-known perks.

What you need to know about credit card travel insurance?

Credit card insurance can be incredibly valuable, but like with anything, it’s important to always pay attention to the fine print as “covered reasons” can be specific and limited.

Understanding Coverage

Two popular cards offering trip insurance, Chase Sapphire Preferred® Card and Chase Sapphire Reserve®, for example, cover “accidental bodily injury, loss of life, or sickness experienced by the cardholder, a traveling companion or an immediate family member of the cardholder or a traveling companion.”

Reading the Fine Print

If you dig through the fine print, however, Chase also states that the accidental bodily injury or sickness must be considered life-threatening or require hospitalization. So in short, if you catch the common cold during a trip and want to head home early, you likely won’t be covered. If you’re hospitalized for a more serious sickness though, you may receive reimbursement.

Understanding Exclusions

Note, however, that you have to actually be sick for the insurance to kick in. The threat of illness or the outbreak of an epidemic in the location of your trip is very unlikely to be covered by credit card trip insurance or any other trip insurance for that matter – even if the CDC or WHO issues travel warnings and bans.

Dealing with Unexpected Situations

Sometimes though airlines and hotels will adjust their trip change policies in response to a global crisis. In these cases, it’s not that you’ll get your money back necessarily, but you can possibly alter your trip to another place or date without paying the typical fee to do so. Your best bet is to call your airline or hotel directly and see if they’ll work with you.

What does credit card travel insurance cover?

Coverage can vary greatly between issuers and cards, but some things commonly offered include:

Trip delay insurance

Trip cancellation/interruption insurance

Car rental insurance

Delayed baggage insurance

Lost luggage reimbursement

Roadside assistance

What is credit card travel insurance good for?

Credit card travel insurance is best for things like severe weather interruptions, everyone in your party getting sick the day before your departure, trip delays, and lost luggage. What’s great about this perk though is if your credit card offers any type of travel insurance benefits, you’re automatically entitled to them as long as you pay for your trip expenses with that card. There’s no signing up or extra fees to worry about.

Which credit cards offer travel insurance?

Card issuers don’t always make benefits like travel insurance obvious, but as this is an included perk, it’s an incentive worth digging through the fine print for next time you’re planning a trip. Some of our favorite credit cards offering travel insurance include:

Chase Sapphire Reserve®

Chase Sapphire Preferred® Card

The Platinum Card® from American Express

Bank of America® Premium Rewards® credit card

Capital One Venture Rewards Credit Card

Should you buy supplemental travel insurance coverage if you already have insurance through your credit card?

The insurance offered by credit cards can be quite useful but it is not exhaustive. Depending on the issuer and card that you use to pay for a trip, there are usually limitations and exclusions in the fine print. In general, if you’re embarking on a big adventure, the safest bet would probably be to pay for your travel expenses with a credit card that includes travel insurance, and then purchase supplemental travel insurance on top of that. That way, your bases are really covered.

Is credit card travel insurance worth it?

In short, yes, credit card travel insurance is worth it. The coverage provided is included with the annual fee to the cardholder and is not an additional expense. It’s a great perk that many cardholders don’t even realize they have access to. There are exceptions though so people with specific needs/concerns might still want to purchase supplemental travel insurance for larger or more expensive trips.