A credit card is not just for making purchases. Now, you can enjoy travel insurance benefits with your credit card. Want to know how it works? Read this blog, where you will find useful information about credit card travel insurance, what they cover, what you should look for in your policy, how to file a claim, etc.
Read on.
What is Credit Card Travel Insurance?
It is a perquisite offered by credit card companies to cardholders when they spend a certain amount on travel expenses through their issued credit cards. This insurance covers multiple travel emergencies, such as trip cancellation, lost baggage, medical emergencies, etc.
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How Does it Differ From Standalone Travel Insurance Policies?
It offers many perks, but it has certain limitations compared to standalone travel policies that you should be aware of.
A standalone travel insurance might cost more, but it offers more coverage and customization options.
The “free” aspect of travel insurance with credit card might be alluring, but it might not offer any real coverage in times of need. When travelling with older citizens, where costly medical emergencies might arise, then it is advised to buy standalone travel insurance.
Also, credit card issuing companies require you to charge a certain percentage of your trip to the credit card to avail of the benefits. There is no such stipulation with standalone travel insurance.
Common Coverage Areas
A credit card travel protection covers the following areas; however, you might need to pay additionally for some of these options as they are not covered by the original plans.
Trip Cancellation
If your trip is cancelled or interrupted for the stipulated reasons, you are reimbursed for any non-refundable expenses. Credit cards with trip cancellation insurance are most common.
Lost Baggage
If your baggage is lost, stolen, or delayed on the trip, you will be reimbursed for the essential items.
Travel Accident Insurance
In case of any accident or death, the coverage shall reimburse you for financial compensation.
Emergency Medical and Dental Coverage
This coverage will help you recover expenses for hospitalization, surgery, and other medical or dental injuries.
Travel Delay Insurance
If your trip is delayed by bad weather, mechanical or other issues, and you spend money on meals and accommodation, this coverage shall reimburse you for the same.
Additional Coverage Areas
Apart from the coverages mentioned above, here are some additional coverage areas:
Emergency Evacuation and Repatriation
If you need emergency medical evacuation to the nearest hospital or repatriation to your home country in case of death during your trip, the charges shall be covered under this coverage.
Rental Car Insurance
This coverage provides protection against theft or damage to rental vehicles if you pay for the rental with your card.
It must be duly noted that all the coverage areas discussed above are not included in the credit card insurance. It depends on the card issuing companies as to what they offer in their “free” coverage. You must read your policy documents to ascertain what additional benefits you might need to buy.
How to File a Claim?
Filing a claim against a travel insurance is easy if you have all the receipts, medical reports, prescriptions and other documents. Again, every credit card company has its process for filing a claim.
If you need any help, you can also consult us at SafeInsure, and we shall be happy to help.
How to Maximize Your Credit Card Travel Insurance Benefits?
Here are the tips that will help you maximize your insurance benefits:
Some credit card companies require you to use your credit card to pay certain travel expenses so you can be eligible for insurance.
Read your credit card company’s terms and conditions and policies to determine what is covered and what is not so you can invest in the required coverage areas.
Usually, there are limitations and exclusions on pre-existing medical conditions and age limits, which must be examined to understand the travel insurance coverage offered by your credit card.
Always keep the receipts and medical records from your trip in case you need to file a claim.
Top 10 Credit Cards for Travel Insurance in Canada
Multiple credit card companies offer travel insurance, but there are certain companies which stand out amongst their peers, and are mentioned below, so you can choose the best travel protection credit card for you:
- National Bank World Elite Mastercard
- Scotiabank Gold American Express Card
- BMO World Elite Mastercard
- CIBC Aventura Visa Infinite Card
- TD First Class Travel Visa Infinite Card
- HSBC World Elite Mastercard
- American Express Cobalt Card
- RBC Avion Visa Infinite Card
- Desjardins Odyssey World Elite Mastercard
- MBNA Rewards World Elite Mastercard
Final Words
Credit card travel insurance is a great coverage option, if you don’t travel often but if you have older citizens accompanying you, there is a greater risk of medical emergency, or you have pre-existing medical conditions, then buying a standalone travel insurance policy is a great idea.
If you need help choosing the right policy for your travel or have queries regarding it, do not hesitate to contact SafeInsure. We offer comprehensive insurance services and are committed to helping you. We are based in Surrey. Visit us for any insurance services.
Frequently Asked Questions
Different credit card companies offer different options. Some offer travel insurance that lasts until you return from the trip, while others offer coverage for a number of trips. You must check the terms of your travel insurance with your credit card issuer.
You must have proof of travel, including your travel and accommodation bookings, the receipts of expenses incurred, medical reports, police reports, etc.
You must check the credit card policy for this, as some credit cards offer coverage for both personal and business travel, while others offer coverage only for personal trips.
You can contact their customer service or check out the website.
The common age limit for the same is 65-75 years. However, you must check out your credit card’s terms and conditions for the same.
It might cover the prepaid expenses in case of trip cancellation and interruption. For detailed information, check out the credit card issuer’s website.
