Understand your Credit Card Insurance

Insurance is one of many benefits offered by credit cards. At a basic level, it’s protecting the goods and services that you purchase on your card. And this also includes travel insurance: hotel stays, flights, event bookings, and more. However, they aren’t insurance companies, so should you rely on it for protection? Is credit card insurance good?

Does My Credit Card Have Travel Insurance?

The first question would be to check your credit card and find out if, in fact, it offers travel insurance coverage. Most of the big credit cards do. But, as we said, it might not live up to the ad copy. You’ll want to read the fine print and get clear on these 3 items: the extent of the coverage, what are the restrictions, and how to make a claim.

• What’s covered: You will likely find that the insurance only protects travel related products and services that were purchased on the credit card. If you plan to take advantage of this benefit, make sure you’re using your card as soon as you start planning. And note, the whole purchase must be on the card.
• Coverage and cost restrictions: Even if a purchase is covered, the credit card insurance may not cover the full price. So if you damage your rental car, or your trip gets cancelled, or you have a medical emergency while you’re away, be sure to understand how much is insured. Also note, if you have a pre-existing health condition, this might not be covered.
• How do you make a claim: The claims process may not be straightforward, and it may also take some time. Be sure to keep all your receipts and documents related to health care and/or communications.

Should I Buy Separate Travel Insurance?

After finding answers to the issues raised above, you may not feel comfortable trusting your vacation to your credit card company. Have a look at stand-alone travel insurance coverage. It offers a number of benefits:

• You can customize your coverage. A 6-week around the world cruise, and a family all-inclusive have different values and needs. With separate travel insurance you can tailor coverage to your travel and your budget.
• You can cover more things. Choose from a broader range of events, purchases and scenarios to be covered.
• Know what you’re buying. Because travel insurance is their specialty, complex terms and conditions don’t have to be complicated. They are spelled out and easier to understand.
• Get help when you need it. In the event of a travel emergency, help is available 24/7 via phone or email

Regardless of whether you end up relying on your credit card or getting a separate travel insurance policy, do your due diligence and know what to expect should your trip not go according to plan. Our certified travel advisors would be happy to help you make the right decision.

We would be happy to answer any questions you may have.

Contact one of our advisors at:

Phone: 1-866-848-8836

Email: [email protected]