What Can You Expect From Travel Insurance Credit Cards?
Here’s what you should know about travel insurance credit cards:
Annual fee: Nearly 60% of cards with travel insurance charge an annual fee. But 15% of cards with travel insurance waive the first year’s annual fee.
Travel rewards: Cards with travel insurance can earn travel rewards, with nearly 80% earning at least 1.5 points or miles per dollar on travel purchases.
APR: More than 80% of travel insurance cards have a minimum annual percentage rate of between 15% and 18.99%.
What Type of Travel Insurance Can You Get From Your Credit Card?
Auto rental collision damage waiver: An auto rental collision damage waiver will cover the cost of damage or theft to a rental car you’ve paid for with your card. That means you can decline paying for coverage at the rental car counter.
Travel accident insurance: This policy will pay out a benefit to you or your beneficiaries if you die or are involved in a serious accident on your trip.
Travel assistance service: While not technically insurance, this coverage can provide you with medical and legal referrals as well as other types of emergency assistance.
Trip cancellation or interruption insurance: This coverage can reimburse you for expenses when you can’t go on your trip because of illness, severe weather or other covered reasons. Many of these policies cover you if you are called to jury duty or military service, or even if your tour operator goes out of business.
Trip delay reimbursement: Reimbursement insurance can cover your meals and lodging when your travel plans are disrupted. And if your bags don’t make it onto your flight, baggage delay and lost luggage coverage can reimburse you for purchases of replacement items not covered by the airlines.
Medical and dental insurance: This can include emergency medical and dental benefits that reimburse you for treatments resulting from accidents or illnesses while traveling.
Emergency evacuation and transportation: With this coverage, you can arrange and pay for medical transportation to return home if you have a serious illness or an injury.
Roadside assistance: Roadside assistance programs may offer referrals and even pay for the cost of minor automotive services, such as jump-starting your car, changing a flat tire or towing your car a short distance.
What Do You Need to Know About Your Credit Card’s Travel Insurance?
The most important thing to know about the travel insurance your credit card offers is that it typically only applies when you use that card, or rewards associated with the card, to pay for all or some of your reservations.
Familiarize yourself with the coverage your credit card provides and any limitations. For example, a trip cancellation policy may cover you if you get sick, but not if the cancellation is due to a preexisting condition.
The rental car insurance credit card companies offer will always exclude certain vehicles and sometimes rentals in certain countries. And you’ll typically need to decline all coverage at the rental counter for your card’s coverage to be in effect.
All of this information can be found in your credit card’s guide to benefits, which is sent with your card and may be available online.
When you experience a travel problem that may be covered by your credit card’s insurance, you’ll need to closely follow the directions for filing a claim in the guide to benefits. You will have to collect receipts and other documents, and you must submit your claim within a specified time period.