If you're looking to insure your trip investment, you may have noticed that many credit cards offer some sort of travel insurance. This insurance is usually limited to trip or flight insurance. Car rental insurance is the most common type of travel insurance offered by credit cards.
Travel insurance offered by credit cards generally does not include:
- Health coverage
- Emergency evacuations
- Emergency room costs
- Lost items or baggage
- Emergency reunion
- And much more
How Good is the Travel Insurance from a Credit Card?
Travel insurance from a credit card is usually quite limited and will vary depending on the credit card type and company. If you are only worried about insurance in case of flight accidents or delays, insurance from a credit card may be sufficient.
If you are considering travel insurance from a credit card, ask these questions before you make a decision. Are there a lot of exclusions or fine print? If there are pages of exclusions or caveats to your credit card travel insurance program, that may be a sign that the plan is more limited than you think. Some companies will bury important information in pages of fine print. This can result in your claims being denied if you find yourself needing to use your policy.
- Is the wording confusing? If you don't understand the wording in your policy, call up your credit card company and ask them to explain. Certain phrases can be key to understanding what your plan covers. Keep a lookout for phrases that could relate to exclusions such as, we will not pay for items left behind, forgotten or misplaced.
- What is the claim limit? Some plans may have very low claim limits so that when you need to use your policy, it will not actually cover the amount of money you think it will.
- Will this insurance cover the trip you have planned? Some plans will not cover certain destinations or activities. If you want to enjoy some adventure sports like windsurfing or even snorkeling, policy exclusions can mean that the provider will not cover any portion of your trip. Make sure that your travel is covered by the plan you choose.
- How high are medical costs at your destination? If you are traveling to a country with particularly high medical costs, such as Japan or the United States, you may want a plan that will cover you, should you have an injury or illness that requires emergency care.
Where Else Can You Get Travel Insurance?
If credit card travel insurance isn't the right fit for you, there are many other travel insurance companies and aggregators that provide more robust options. You may need travel medical insurance if you are traveling to a foreign country, particularly one with high health care costs. If you only want to cover the pre-paid costs of your trip in case you must cancel or postpone your travel plans, trip insurance may be right for you. If you are taking a specific kind of vacation, such as a cruise, there are also specific types of plans that will cover you in more specific situations.
Have questions specific to your travel plans? Reach out to our licensed travel insurance experts and they will help you find the ideal plan for your needs.