Can You Rely On Credit Card Travel Insurance?

Can You Rely On Credit Card Travel Insurance

You think you’re safe traveling on just your credit card availed free travel insurance? Think again. Not opting for a standalone travel insurance policy and relying on your credit card travel insurance could cost you dearly. At least that’s what most of the data suggest.

Can You Rely On Your Credit Card Travel Insurance?

1. When Does Coverage Begin

To answer that question you must have all the information at your fingertips. Credit card companies will only “cover” you if a majority of the trip has been paid for by the credit card. Don’t be fooled into thinking that just because you have the credit card you’re automatically covered. Read the instructions either on the credit card website, or the fine print of your form.

2. Coverage Duration

While it may be easy to assume that your credit card insurance will cover your entire trip, it is not necessarily the case. Find out from your credit card company what is the maximum trip duration you can take while still being covered by their insurance policy.

3. Additional Charges

While it may seem like the travel insurance is complimentary on your ‘premium credit card’ you may have to pay a fee to have your claim settled. Find out from your credit card company how much you would have to pay.

4. Level Of Cover

It not difficult to guess that if you are looking for a lot of cover for your trip and personal belonging a stand-alone travel insurance would be better off. There are a lot of terms and conditions for you to be eligible for a credit card travel insurance, and even then the coverage is so poor, you will probably not be covered for the thing you need most.

5. Flexibility Of Coverage

The travel insurance covered by most credit card companies is very limited and fixed. You don’t have an option to add or remove conditions. If and only if you meet the criteria they’ve specified in their terms and conditions are met during your ‘accident’ will your claim be processed. Stand-alone travel insurance, on the other hand, is very flexible and can be adjusted as per your needs and requirements.

6. Family Cover

Typically credit card travel insurance is only for the person in whose name the card has been issued. If you are planning on vacationing with your family and think that your credit card insurance covers them too, you are very mistaken (or at least ill-informed). Get the right details from your banking representative so you know exactly the limits of your liability.

7. Domestic Or International

Another condition that is predefined by the credit card company is whether you are covered for both domestic or international travel. In most cases, it is one of the other and you need to know which before you make the conscious decision whether to take a stand-alone travel insurance policy or not.

In a nutshell, in most cases, credit card travel insurance policy just won’t be enough of a coverage for you. Depending on where you’re going, for how long and with whom you might want to consider getting a travelers insurance policy. While it might be tempting to only taking the ‘free’ credit card travel insurance the risks involved would be too high. Before you make up your mind it would be best to be presented with all the information of your credit card travel insurance so you can make the most informed decision. What do you think is the right choice to make?