Is Credit Card Travel Insurance Coverage Adequate?
We frequently receive questions from travelers who are considering purchasing travel insurance for their next trip about the distinctions between our plan and the travel insurance provided by credit cards.
It’s a valid question. Why pay for a good or service when you might get it for free? Because there are so many options, more and more people are opting to buy a stand-alone travel insurance coverage to protect their vacation investment. We can’t give an exact comparison because each plan is different, but we can point out some of the most significant differences. For the sake of this article, we’ll refer to a standalone travel insurance plan as a “comprehensive” travel insurance plan.
- The benefit count of the plan
When it comes to benefits, credit card-based plans sometimes fall short of full travel insurance packages. Check if the benefits listed on your credit card cover all you expect by reading through the entire list of benefits.
- Maximum degrees of coverage
Many credit cards have limitations on the benefits of trip cancellation and interruption protection, which are higher than those of all-inclusive travel packages. Certain credit cards have a $2,000 travel insurance limit; nevertheless, some credit cards have a $20,000 travel insurance limit. This may be sufficient, but many of our clients travel further than this. Under our programs, trip cancellation insurance is offered for travel expenses up to $100,000 or more. Additionally, keep in mind that the Trip Interruption benefit on many USI policies may pay up to 150% of the trip expense.According to our study, the majority of credit cards only reimburse up to $500 per trip for lodging and other necessary travel expenses in the event of a trip delay. However, comprehensive travel insurance policies like those provided by USI may reimburse up to $2,000 in coverage for delayed travel, depending on the plan and level selected.
- covered reasons
Travel insurance policies offered by credit card providers frequently cover fewer situations, such as trip interruption and cancellation. This suggests that in the event of an unanticipated circumstance requiring you to postpone or cancel your trip, your chances of being reimbursed in the event of a claim are reduced. Comprehensive travel insurance includes a wide range of covered causes. See the policy to get the whole list.
- Costs of Medical Care and Emergency Medical Transportation
It’s likely that the travel insurance benefits offered by credit cards don’t provide all the necessary medical coverage. Complete travel insurance programs sometimes offer greater benefits for evacuation and medical expenses coverage than credit card policies. For example, USI’s comprehensive travel cancellation insurance includes medical protection coverage up to $150,000 and emergency medical evacuation coverage up to $1,000,000.
- Enhancement with a cancelable option for any reason
Adding the Cancel For Any Reason (CFAR) upgrade to credit card travel insurance is typically not possible. Many tourists search for this crucial benefit, especially considering how unpredictable travel is these days. Our comprehensive travel insurance packages come with this upgrade option, which gives many of our clients the extra flexibility they desire for added peace of mind. Just make sure to buy your plan as soon as you can because you may only access CFAR within 14 and 21 days following your initial trip payment. Don’t miss this opportunity!
- complete reimbursement for travel costs
It’s important to keep in mind that credit card travel insurance only reimburses eligible expenses for trips where every purchase was paid for in full with the credit card. Travelers can, however, cover all of their expenses by acquiring a comprehensive travel insurance plan, regardless of how they were paid for.
- Help with Customer Service and Claims
Have you ever attempted to reach those large credit card companies via phone? It’s conceivable that you won’t be able to get in touch with anyone at all, much less someone who is knowledgeable about the travel insurance plan and can assist you in selecting the coverage that best suits your needs. USI Travel Insurance Services can offer you expert advice anytime you need it. The only goals of the non-commissioned, certified insurance representatives who work in customer service are to provide travel insurance and assist customers in protecting their vacation plans.
Should you need to file a claim, our Customer Service representatives can also assist you. As a broker, we look out for the best interests of our passengers during the claims process and are here to help if you run into any problems with the claims administrator.
