“My credit card offers free travel insurance, I’m covered.”

WHAT YOU NEED TO KNOW ABOUT TRAVEL INSURANCE vs CREDIT CARD TRAVEL PROTECTION.

Look, I get it. You just dropped a ridiculous amount of money on your dream vacay, your bags are packed and you’re ready to go, and adding an additional expense wasn’t in the budget. However, travel insurance should not be thought of as an “extra”, and should always be factored in to your overall cost of your journey.

Choosing the right kind of coverage can be confusing, and downright frustrating. Most people see the words “travel protection” connected to their credit card, and think they are fully covered, and that’s not completely true. Here’s where the myth bust comes into play.

While some credit cards offer built-in travel insurance as a cardholder benefit, and it may be tempting to rely on just those protections instead of buying a comprehensive travel insurance policy. The entire point of travel insurance is to be covered if something goes wrong. What most travelers don’t know is the most credit card coverages are limited and have restrictions, such as the entire trip must be paid for with the same card. Here are some important things to consider when comparing credit card travel insurance to a stand alone travel insurance policy:

Not all plans are created equal.

1. Some cards offer only a few benefits, such as baggage protection and rental car protection. A few cards provide more generous travel insurance coverage that includes trip cancellation/interruption, trip delay, and more.
2. Most travel rewards credit cards carry an annual fee, so the “free” travel insurance benefits aren’t really free. For example, two of the credit cards known for offering the best travel protection benefits (Chase Sapphire Reserve and American Express Platinum) have annual fees of $550 and $695, respectively.
3. Make sure to put all your trip costs on the same card, if you want the travel protection offered.
4. Trip cancellation claims and medical evacuation claims may be denied if they’re related to an existing medical condition.
5. Credit card travel protection benefits typically have more restrictions and exclusions than stand-alone travel insurance plans. Make sure you read the details so you’re not surprised by a rejected claim.
   

Again, Not all plans are created equal.

Many different types of protections fall under the term “travel insurance.” Standard, comprehensive insurance policies typically include broad coverage across various potential issues. You can buy a travel insurance policy for a relatively small premium that may provide reimbursement or coverage for unexpected issues that affect your trip.

Stand alone policies cover the total cost of your trip, no matter how you paid for it, and offer higher limits for things such as medical evacuations and cancel for any reason. In addition, you can opt for coverage for every person on the trip, and can be priced out individually, or as the total trip cost. With certain policies, travelers get a full suite of coverage, including trip cancellation, trip interruption, trip delay, lost baggage, delayed baggage and more. There is also options to purchase annual policies for frequent travelers, which can be a cost saver.

Deciding what coverage is best.

As you’re shopping, you’ll find dozens of insurers, some of which are not reputable. Reach out to us Rock & Roam Adventures for a more detailed list of vetted companies we work with. We can supply quotes and with the coverages they offer, so you can compare and make an informed decision that works best for your travel needs.

Final Curtain Call.

Credit cards do offer real, tangible travel insurance benefits that can protect you from unexpected bills. However, no credit card covers every facet of your trip, and you should read the fine print. For simple trips, credit card insurance may suffice, especially if you used that to pay for your entire trip. 

Many travelers would likely prefer a more comprehensive policy and those looking for extensive insurance should purchase a separate policy. Otherwise, be prepared to pay for possible expenses out of pocket, and potentially lose all of the money that you invested in your getaway.