The credit card companies love to promote the fact that they provide insurance for the cost of airline tickets or accommodations if you have an emergency while traveling. But just how could is the coverage? Should you rely on it to protect your investment? Is credit card insurance enough?
How Does Credit Card Travel Insurance Work?
Many of the major credit card brands offer travel protection. This might include things like trip cancellation, emergency medical, baggage delays, and rental care damage insurance. However, you’ll probably find an asterisk beside each of these stated benefits. Here’s what you need to pay attention to in the fine print.
- Limited coverage: The insurance coverage only applies to the travel related items that you bought with that credit card. So when you are booking your flight or hotel or car, you need to put them on your card in their entirety.
- Restrictions: The credit card insurance may not cover full costs, whether it’s a reimbursement of a cancelled ticket, replacement cost for luggage, or medical expenses. Find out exactly where your coverage ends. For health emergencies while traveling, if you have a pre-existing medical condition, it might not be covered.
- Claim process: Keep your receipts – and your patience. The claims process can be long and complex. And you may not get the coverage you expect.
Separate Travel Insurance
For the reasons above, you may want to purchase a separate travel insurance policy. And you’ll get peace of mind with these benefits:
- Clear terms: The terms and conditions are spelled out and easier to understand. You’ll know exactly what coverage you’re getting and what’s not included.
- Custom coverage: You can customize the travel coverage based on your needs and budget.
- More coverage options: With separate travel insurance there is usually coverage for wider range of situations and events that can be insured.
- Help close by: Phone and email assistance is available 24/7 in the event of a travel emergency.
Choosing Travel Insurance
If you’re going on a short trip and anything and everything can be put on your credit card, then you may have all the insurance coverage you need. But don’t wait until you’re already on the road or in the air to find out.
- Compare all your options: Look at your credit cards offerings and also independent travel insurance plans. Consider the total cost, length and activities on your trip to select the insurance that is best for your needs and budget.
- Read the fine print: This bears repeating. Take the time to understand all the details of what is and isn’t covered, and how to make claims.
- Know the dollar limits: You know the cost of your travel expenses. Make sure you know how much of each the travel insurance will cover in different situations if you need to make a claim.
- Be honest: If you a pre-existing medical conditions, notify the insurance company before you finalize the purchase. It could jeopardize all of your claims.
- Keep all documents: Save your tickets, purchase receipts, credit card statements, and anything else that you think might be relevant. Don’t get stuck with a claim not being accepted, or having to track down receipts after the fact.
Travel Smart
Credit cards are fantastic; they’ve made purchasing and travel a whole lot easier in a lot of respects. But travel insurance isn’t necessarily one of them. Learn the coverage and limitations of your credit card while you’re planning your trip. And if the risk seems to big, then separate travel insurance can give you the benefits coverage and peace of mind you need.
Learn more about Ontario Blue Cross travel insurance. And if you have any questions or to get a quote, give one of our certified travel advisors a call at 1-866-848-8836.