VisitorsCoverage logo
Travel Insurance

Travel Insurance vs. Credit Card Insurance

Travel Insurance vs. Credit Card Insurance

Wanderlust is in the air. Travelers all over the world are checking their calendars for the best times to take the trips they’ve been dreaming up during COVID lock-downs. If you’re one of these travelers, you might be feeling a mix of excitement and uncertainty as you look up flights, check out hotels and keep informed about the COVID situation in your destination country.

One way to relieve some of this anxiety is by purchasing travel insurance. As countries reopen to tourists, more than half of all travelers are expected to buy travel insurance. Trip and travel coverage is quickly becoming a travel essential. And now, some credit card companies are offering their own trip protections to customers. So how do you know which is better, travel insurance or credit card travel insurance?  

Trip cancellation 

While some premium credit cards do offer some measure of trip cancellation protections, credit card trip protections generally won’t cover you financially if you have to cancel your trip plans unless it’s for a reason out of your control like a natural disaster. Post-pandemic travel will likely be complicated and unpredictable.

Luckily, one of the main benefits of travel insurance is that you have the option of adding a Cancel for Any Reason (CFAR) benefit. This benefit allows you to be reimbursed for prepaid trip expenses should you need to cancel your trip for, literally, any reason. You’re credit card can’t do that.

Non-medical evacuation

A lot of credit card trip protections offer coverage for medical emergency evacuations. But if you need to be evacuated for any non-medical reason, such as political unrest or natural disasters, your credit card might not be enough. If there’s a possibility that you might face any of these situations, purchasing comprehensive medical insurance can give you peace of mind. While not all plans will cover non-medical evacuation, some will. Discover more about the different types of evacuations. 

COVID-19 coverage

Credit card travel insurance may cover events related to COVID, like mandatory quarantine or trip cancellations caused by a sudden surge in cases, but they typically don’t cover medical care for a newly afflicted traveler. On the other hand, buying travel insurance that covers COVID-19 like any new illness, will save you a lot of stress and money if you contract COVID-19 while traveling and need medical care.   

International travel

Credit cards won’t always cover medical expenses and if they do, it may be a limited portion of your cost and you would need to get reimbursed later. With travel insurance, you’ll have more options to protect your finances and your health. Also, travel insurance is more convenient. Instead of waiting to be reimbursed after the fact, travel insurance can cover a number of fees upfront.

All you have to do is provide your policy information to the provider. If it’s a covered benefit, you’re only responsible for the deductible. This process is especially useful for international travel where there may be a language barrier preventing you from fully understanding the fees.  

Adventure sports

The world promises so many amazing adventures: You can go snorkeling in the Great Barrier Reef, scuba diving in Costa Rica or snowboarding in Denver. But adventure sports come with a higher risk of injury. This means your credit card trip protections may not be enough coverage. Travel insurance can protect you from high medical expenses and ensure you get the care necessary.    

When deciding between credit card insurance and travel insurance, consider your specific travel needs. Factors like your health, age, ability, where you’re traveling, what activities you’ll be doing, and trip duration play a big part. In general, though, while your credit card may offer some level of trip protections like trip delays, loss baggage, travel accident coverage and certain trip cancellations, comprehensive travel insurance offers a much broader range of protections like Cancel For Any Reason insurance (CFAR), travel medical, and injuries related to certain adventure sports.

In other words, travel insurance protects both the trip and the traveler.

Related Articles

Visitors Travel Insurance – Understand The Plan Benefits, Before Buying It

Pick the Right Plan Type: Limited or Comprehensive? Shopping for the right visitors travel insurance…

I Have Travel Insurance, Do I Pay Upfront At The Pharmacy?

Many travelers to the U.S. are surprised when they have to pay upfront for their…

Does Your Travel Insurance Policy Offer Cashless Pay?

Many agents’ websites claim that their Travel Medical Insurance plans are cashless or direct payment…

Travel Insurance for USA: Essential for Your Trip

Millions of international tourists travel to the United States of America every year, with the…


Skydiving is an activity found on many people’s Adventurous ‘bucket list’. Skydiving involves wearing specific…

Infographics: Travel Insurance Myths Vs. Truth

Travel insurance: some say it’s necessary; others say you don’t need it. Others may feel…

Visitors Insurance Plans with US State Restrictions: Can You Buy Them or Not?

Some travel medical insurance plans have state restrictions, but what exactly does this mean and…

Why US Citizens Need Travel Insurance the Most

While planning a trip abroad can be extremely exciting, it’s important to keep in mind…

ChoiceAmerica: A Unique Travel Insurance Product

VisitorsCoverage continuously strives to provide consumers with products that are in line with travelers current…

What is Accidental Death And Dismemberment (AD&D) Coverage?

Accidental death and dismemberment insurance is a benefit that pays a lump sum amount to…

Usual, Reasonable & Customary Reimbursement

Most travel insurance plans reimburse based on Usual, Reasonable and Customary charges (UCR) for all…

Helpful Tips for Snowbirds of Every Feather

Every fall and winter, folks in the northern regions of North America pack their bags…

Infographics: The Hidden Benefits of Travel Medical Insurance

Travel insurance isn’t just limited to common trip protections and medical safeguards. There are a…

Gap Year Travel Insurance Explained

It’s back to school season. For many American students, this means buying textbooks, finalizing their…

The Truth Behind Trip Insurance Reviews & Ratings

When you’re thinking about buying trip insurance for your next trip, it’s important to research…


Plan features listed here are high level, provided for your convenience and information purpose only. Please review the Evidence of Coverage and Plan Contract (Policy) for a detailed description of Coverage Benefits, Limitations and Exclusions. Must read the Policy Brochure and Plan Details for complete and accurate details. Only the Terms and Conditions of Coverage Benefits listed in the policy are binding.