Traveling can be a ton of fun, but on every trip there’s potential for things to go wrong. From misplaced bags to vacations you paid for but are unable to take at the last minute, problems can occur at any phase of your trip. And these hiccups can sometimes be quite costly.
Fortunately, there are many credit cards with travel insurance that provide protection when issues arise. Be aware of what perks your card offers so if something goes wrong, you can contact your card’s issuer and be reimbursed for your losses.
What does travel insurance cover?
The specific protections you’ll get vary by card, but some of the most common types of insurance credit cards provide include:
- Trip cancellation or trip delay insurance to reimburse you for losses when your vacation can’t go forward as planned.
- Coverage for lost or delayed baggage so you can be reimbursed if you have to replace items when your luggage is lost permanently. You could also get reimbursed to buy clothing and toiletries while you wait for your delayed luggage to arrive.
- Accident or death insurance to provide compensation if a tragedy occurs on your trip.
- Medical evacuation coverage to transport you to a hospital if you require care you can’t get at your travel destination.
The travel insurance coverage your card provides can be quite valuable. If you were to buy your own travel policy from an insurance company, you could pay an average of $105 for basic coverage up to $164 for a more comprehensive policy, according to a recent study by ValuePenguin.
Similarly, lost luggage benefits on your credit card could reimburse you for several thousand dollars in possessions that can’t be recovered if your baggage never makes it back to you after you put it on a bus, train, or plane. While you’ll need to check your card’s terms and conditions to find out the maximum compensation for lost luggage, it’s common for cards to set a $3,000 limit on the amount of reimbursement available.
Be aware of the fine print
While credit cards with trip cancellation benefits or similar protections are common, there’s usually some fine print to be aware of. For example, some common caveats include the following:
- You may not be covered if your trip was cancelled because of a preexisting medical condition or a change in plans or financial circumstances.
- You must report any covered losses within a specific timeframe. For example, to make a claim for lost luggage insurance, you may have to alert the common carrier upon exiting that your luggage has been lost.
- Your credit card’s travel insurance often serves as secondary insurance, which means you must take advantage of other coverages available — such as airline reimbursement for lost luggage — before your credit card will reimburse you.
- Receipts or other documented proof of loss are usually required to file any type of claims with your credit card travel insurance.
8 credit cards with travel insurance
There are many different travel credit cards that come with various types of insurance. The table below shows some of the protections offered by popular credit cards, which could give you peace of mind if you travel often.
|Card||What does it cover?|
|Amex Blue Cash Everyday||
|Capital One® Venture®||
|Chase Sapphire Reserve||
|Chase Sapphire Preferred||
|Amex Platinum Card||
Look for credit cards with travel insurance
There are several credit cards with trip cancellation benefits and with other kinds of travel insurance as well. The key is to find a card that provides the protections you’re looking for when things go wrong on your trip — but which is also affordable and provides other features or perks that benefit you.
Remember, once you have a card with travel insurance, always read the cardmember terms so you’ll know how much protection you have and what you need to do in order to make an insurance claim. When you do, you’ll have peace of mind knowing your financial loss is limited, even if a disaster occurs on your trip.