What's Important When Choosing A Credit Card Travel Insurance?

Travel insurance is common nowadays whether you are traveling abroad or within your own country. Credit card travel insurance keeps you safe from paying a huge sum of money if something happens to you.


Travel insurance is common nowadays whether you are traveling abroad or within your own country.  credit card travel insurance   keeps you safe from paying a huge sum of money if something happens to you.

You can cover many expenses from  credit card travel insurance   such as cancelled flights, lost baggage, medical emergency, act of terror. However, many people don't enjoy travel insurance because either they don't have time to explore different packages offered by different companies or they are not interested.

To solve this problem, many credit card companies provide complimentary travel insurance to their holders. By having such credit cards, you save the time of picking travel insurance each time you travel as a credit card automatically covers your trip each time you go somewhere.

Important points to consider when choosing the best credit card travel Insurance:

Credit card travel insurance as stated saves you from a lot of troubles during your trip. You can find plenty of options for credit card travel insurance, however, it is important choosing the best one. Different credit card companies' different packages. Some even don't cover travel insurance. Many factors play a vital role in choosing the best credit travel insurance policy which are:

  • Does it cover trip interruption or delay insurance or not?
  • It should cover medical evacuation, transportation, and medical bills.
  • During travel, you may visit doctors or dentists for a check-up, it should cover these expenses as well.
  • Your baggage insurance is important. It should cover baggage or personal belongings insurance.
  • You stay in hotels whenever you are on a trip so, in case of robberies in your hotel, it should cover that as well.
  • Most importantly, it should cover your life insurance.
  • Mostly, visitors use car rental services during their overseas trips, so it should cover that as well.
  • Some companies cover the cancellation of the fight due to illness, bad weather conditions, or even the illness of a family member as well.

Credit card companies regularly revise their travel insurance policies, so it is important to check regularly their new terms and conditions.

However, these insurance policies are standard which are best for any traveler. It is also important to note that your credit rating also determines what package you qualify for, as different companies deal with different customers differently.

Some companies even charge their customers annual fees for providing travel insurance. Similarly, you should also know about the exclusions, limitations, and coverage gaps of your credit card travel insurance. You should ask your company whether:

  • It covers business-related travel, personal travel or both.
  • Is there any coverage gap like some companies offer for a specific time such as 15 days, or 30 days? So ask whether you can top-up travel insurance to extend the length of the insurance.
  • Is there any limitation on a certain age, or change of medical condition?
  • How you are getting paid? Whether you pay from your pocket and then you are reimbursed later. Also, how much amount does it cover? What is the maximum limit of insurance cover?
  • Similarly, does it cover only your trip or your family members as well such as your children and spouse?

See what other experts think about what is important when choosing a credit card travel insurance.

Jennifer Wilnechenko, Editor at Etia, on insurance benefits

Many travel credit-cards and even some of the plain versions, comes with insurance benefits that could help you on the road with everything, like from replacing a broken smartphone to getting medical care.

Typically, the benefits from your card are secondary to your other insurance policies and may cover only some of your expenses. One of the most important benefits, for me personally, was the lost luggage insurance. It reimburses you for the bag and its contents if the luggage is permanently lost.

In some cases, it will also cover damage if the bag is eventually found. Often, there is a maximum cap on claims. And some items (money) may not be covered. Carry-ons are also sometimes covered.

The best time to buy travel insurance is within 15 days of making the first deposit on your trip, since buying early can often qualify you for bonus coverages. However, there are many plans that let you buy coverage up until the day before you leave.

Jennifer Wilnechenko, Editor at Etia
Jennifer Wilnechenko, Editor at Etia
I'm Jennifer, Editor at Etia.com, where we aware the travel community with the latest information on Etias and other travel-related education.

Austin Tuwiner, owner at ScubaOtter, on scuba diving insurance: a fresh perspective

Something that many people don't often consider when diving is the need for dive insurance. Many credit card companies will not be able to cover some of the unexpected costs incurred in the case of damage or accidents.

Dive insurance protects you against the unpredictable expenses of a potential scuba diving accident. In general, dive insurance will cover the cost of any medical treatments, hyperbaric therapy, or emergency evacuation you may need. More comprehensive dive insurance policies can also include cover for your dive gear, lost diving days, and much more.

Austin Tuwiner, owner at ScubaOtter
Austin Tuwiner, owner at ScubaOtter
My name is Austin Tuwiner, and I have been an avid scuba diver since the age of 16.

Simon Nowak, CEO and founder of Authority Dental, on how to use a credit card insurance

Travel insurance and  credit card travel insurance   is a stressful element if you've ever had to use it. YES - those are two different things.

  • The most important thing is how to report a problem, such as card theft, irregularities, etc. Does the helpline work 24 hours? If you are going to the other side of the world - on an American quiet night you may need help at your noon. Consider if you will have anyone to report anything at this time of day?
  • The calls in some countries are expensive. If you take your own fixed number and buy a packet to your destination country - you'll probably get a good price for calls home. Although they can still exceed $10 per minute and charge for every started minute. It would be good if they provided a callback or chat option to instruct you on the next steps and to safeguard the situation.
  • Consider what situations are being secured - do you need to have confirmation of the theft from the police? Is your word enough to take action?
  • How much does the insurance cover? If the card is stolen and someone makes an offline transaction for $10,000, will the insurance cover it? Some people add restrictions in small print - type: insurance valid for losses of $0-3000.
  • How long do you have to wait for the situation to be considered? The contract can provide for a 30-day review of the situation and weeks to respond.

As you can see, there are many elements that are important for credit card insurance. Therefore, it is a good idea to inform your bank that you are leaving if it is a long journey and report a list of countries you will visit. You will make sure that your bank does not think your card has been stolen and is being illegally used because you have never logged on from a particular country before.

Simon Nowak, CEO and founder of Authority Dental
Simon Nowak, CEO and founder of Authority Dental
I’m a web development executive, with 5 years experience leading a remote team of developers.

Galena Stavreva, CEO at SpareFare, on Plan B when travel insurance is denied

Even if you do have travel insurance, sometimes your specific circumstances are just not covered - like that break up with your ex. Or your boss at work telling you that you need to finish that project before you can take time off.

Travellers are still not aware that many of the travel reservations are transferable. This is a great alternative if your insurance claim is denied. Or if you do not have one in the first place. The name of the passenger can be changed and the booking can be sold to someone else.

Sellers might not be able to recover 100% of what they paid for their holiday, but even getting half back is so much better than losing everything!

Travellers can resell flights, hotel reservations and package holidays.

With flights, your airline needs to allow name changes. The ones that do always charge a name change fee for the service. Hotels always allow changes to the name of the main guest under the reservation. They do not charge any fess, too. The rules for package holidays depend on your travel agent. Most allow name changes and charge a small administrative fee for the service.

Galena Stavreva, CEO at SpareFare
Galena Stavreva, CEO at SpareFare
Galena is the CEO of SpareFare.net - the eBay for travel bookings.

Brad Emery, founder of Aimviva Travel Club, on What's important when choosing a credit card travel insurance?

Have you faced troubles traveling, what has been the most important from your credit card insurance?

I have never successfully claimed on a credit card insurance plan but I know people that have for e.g. lost and damaged luggage and even for flight cancellations. The key is that part of the trip must have been booked with the credit card that you are trying to claim on.

Credit card tends to be limited because it is provided at pennies per card holder - knowing that most will never use it, let alone make a claim successfully.

If you follow the rules you can claim and the card company will be happy you claimed - so they can show other customers that the benefit is real.

Did it help you solve the situation, or what didn't work at all and made you rethink your credit card choice related to the travel insurance?

The biggest omission on most credit-card policies that I look at is medical coverage. Your domestic private medical cover is unlikely to cover you overseas but Sickness is the biggest claim item that we deal with regularly, followed by injury claims.

I once had an emergency hernia surgery in Bangkok paid for by travel insurance. I would never travel without it now, having been through that.

We have helped members claim for a laptop left in the back of an airplane seat, and a dive computer that fell off in a strong current - some of the things that go wrong on holiday are amazing.

Which tips could you give to somebody that needs to select a travel insurance?

Make sure there is enough medical cover and that it includes the country you are traveling to - especially if you are traveling to the USA from abroad.

Don't accept a cheap policy with minimal medical cover.

If you plan to do sports on holiday especially riskier sports like Scuba, rock climbing, parachute jumping, skiing etc then please make sure you buy a policy that includes them.

If you are covering a family do not accept a policy that offers half the cover for children - it may mean that it does not cover enough for a hospital bill.

Make sure you have evacuation cover and that you can cancel for sickness or bereavement of a relative.

How long in advance should a traveler book its travel insurance, and what should he be particularly mindful about?

Ideally buy an annual policy if you will travel 3-4 times in the coming year. If not then buy when you book your flight. If you don't then statistically you will forget about it.

If you need to make a claim - file something as early as possible. Even if you don't have all the documents yet. Some policies have a tight deadline for filing but will happily wait for months to complete missing documentation.

Brad Emery, founder of Aimviva Travel Club
Brad Emery, founder of Aimviva Travel Club
Brad Emery spent 20 years as an Insurance Executive before starting the Aimviva Travel Club - which helps regular travelers and Nomads with Travel Insurance and other common travel related solutions.

Jordan Bishop, Founder of Yore Oyster, on Choosing credit card insurance

You should definitely get travel insurance when you go abroad - unless you want to risk the nasty, painful surprise of getting hurt while you're away from home. Here are a few less obvious things to look for in  a travel insurance   policy:

  • Emergency medical evacuation of at least $100,000
  • Emergency dental of at least $1,000
  • Trip interruption of at least $3,000
  • Personal liability of at least $10,000

This last one, personal liability insurance, is one that's often overlooked, but it's extremely important for you, who may be taken advantage of if you're in a situation where someone's property is damaged.

Personal liability insurance ensures that you're covered if something goes wrong.

Travel insurance can be a godsend when your travel itinerary goes awry. When the former French airline XL Airways went bankrupt, I was stuck holding a useless ticket that I'd paid over $400 for. XL wasn't reimbursing any of its passengers, but fortunately for me, my travel insurance covered the entire cost of the ticket - and I was able to book an even cheaper last-minute ticket home! I ended up saving money at the end of the day, so I'll never even consider traveling without insurance again.

Jordan Bishop, Founder of Yore Oyster
Jordan Bishop, Founder of Yore Oyster
Jordan Bishop is the founder of the miles and points website Yore Oyster and the Editor of the financial blog for digital nomads, How I Travel.

Saurabh Jindal, from Talk Travel, on Choosing a credit card travel insurance

I live in Paris(France), and often take out weekend or extended weekend trips to other cities, with my wife.

Also, whenever we travel, we prefer using the insurance provided by our credit card, especially when using a hired car.

Hence, based on my experiences, I can answer your query.

  • 1) Talk to your credit card company and get the details from them on the coverage of insurance offered. *Do not assume things.
  • 2) While hiring a car - most probably your *credit card would cover the insurance *which the car-hire company will try to force to put on to you. Better to talk to your card company, get the details, and if they provide the same, refuse the insurance provided by the car company.

Travel insurance is a must for traveling

No matter how careful you are, if you are planning only a relaxing beach holiday, it is simply impossible to foresee all the risks. According to insurance agents, the most common troubles of travelers are gastrointestinal upset due to unusual food, colds (everyone's acclimatization is different), and sunburn. And sometimes you can just stumble on the street.

Remember that travel insurance is not only about medical care, which is often associated with a travel policy. But also about your legal and administrative support. Learn travel insurance when booking with credit card and go on an adventure!

Saurabh Jindal, from Talk Travel
Saurabh Jindal, from Talk Travel
My name is Saurabh, and I run a startup called Talk Travel
Main picture credit: Photo by Annie Spratt on Unsplash

Frequently Asked Questions

What key factors should be considered when choosing a credit card that offers travel insurance, and how do these factors impact the coverage quality?
Key factors include the scope of coverage (like trip cancellation, medical expenses), exclusions, coverage limits, and eligibility criteria. These factors impact the comprehensiveness and suitability of the coverage for the traveler’s needs.

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