Have you ever had unforeseen circumstances during a trip? A health problem, lost luggage, or even a traffic jam that interferes with the day’s schedule can be enough to frustrate any traveler. You could get some help from credit card travel insurance for some situations. (See also: Best Travel Insurance Credit Cards In Canada).
This article offers some tips on the benefits that your card can offer to guarantee you a good trip.
How credit card travel insurance work
Travel insurance is intended to protect the passenger from possible problems, such as problems with flights and health. When offered by a credit card, it may not contain all the coverage expected. Depending on your card, you can have complete or limited coverage. Higher tier cards typically offer better coverage than lower tier cards. So, a premium card, for example, guarantees more benefits than a no annual fee card.
An important thing to keep in mind is that you must use a travel insurance credit card to purchase the ticket to enjoy the insurance benefit.
In addition, it is possible that the coverages are only for the cardholder or that they even extend to your spouse and children. So, be sure to check this out before going on a trip. (See also: 4 Reasons To Take Out Travel Insurance For Your Next Trip).
What protections does the card’s travel insurance offer?
In theory, a lot can get in the way of a trip. Therefore, all cases are specified in advance in the insurance contract, and the customer must check the list before boarding. Thus, you can find out which services you are entitled to and in which situations you can use them. Moreover, you can also analyze the need to hire more specific insurance separately.
It is worth mentioning that, in each type of contract, other characteristics also vary, such as:
- term of insurance;
- dependent coverage;
- coverage amount.
Below are some of the contingencies that can be reimbursed by the insurance offered by your credit card. Check it out:
1. Trip cancellation
In cases of illness, you can activate the card’s travel insurance to cancel the trip at no additional cost. The insurance may be valid if the holder becomes ill and cannot travel. Or if there are health problems with a direct relative of the service contracting party.
2. Delay or interruption of the trip
The causes of this type of problem can be the most varied. Cards generally cover delays due to weather problems, mechanical failures, lost connections, strikes, injuries, and other exceptional cases.
In some cases, your credit card may compensate you for hotel stays and meals if you have a delayed trip that lasts for some hours on a common carrier, such as an airplane or bus ticket.
3. Travel medical emergencies
In countries like the United States, which do not have public medical services, a trip to the hospital can be pretty expensive. Some categories of cards provide coverage for international medical emergencies. This insurance most times covers the card holder, spouse, and children up to 24 years old, as long as you purchase their tickets with the card. However, it is essential to remember that every card has maximum coverage limits.
4. Car rentals
Travel insurance usually covers theft and damage to the rental car. For this to be included in the list of benefits, you must use your card to make the reservation and pay in full for the car rental using the card. The insurance will protect the holder and the driver registered with the company depending on the brand. Scotiabank credit cards are the best card for this type of insurance.
In conclusion
If you have more than one card, you should compare the insurance offered by each bank before paying for the ticket. This will allow you to choose the card that gives you the best coverage.
It is important to remember that the insurance offered by the credit card does not cover some specific situations, such as accidents due to extreme sports or medical complications of pregnant women. Therefore, it is better to hire these coverages separately if you need them.