September 27, 2022

10 Credit Card Travel Insurance Coverage Issues You Might Not Know About

If you use credit cards to pay for your travel expenses, you might be able to get travel insurance coverage through the card’s benefits or with the help of an additional credit card that doubles as an insurance policy. But not all credit card travel insurance policies are created equal, and it’s possible that you could have coverage without even knowing it, as well as issues that you might not realize are covered under your policy. These 10 credit card travel insurance coverage issues can save you time and money if you know how to avoid them.

1) Make sure you’re covered for everything you plan on doing

You might be surprised to know that your credit card travel insurance might not cover everything you think it does. For example, even if you have a ticket for a plane or train ride and are just in the airport waiting for departure, that’s considered traveling and therefore will likely not be covered by your insurance plan. Your coverage also likely doesn’t include any incidentals like hotel stays or rental car fees if the coverage is activated after they were incurred.

2) Check if you can claim insurance for delays

If your credit card provides travel insurance, you may be covered for delays. Check the terms and conditions of your card to see if you’re covered and what the coverage limits are. In most cases, you’ll need to purchase your ticket with your credit card in order to be eligible for coverage. And keep in mind that there may be a deductible that you’ll have to pay out of pocket before your insurance kicks in.

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3) In case of flight cancellations, check with your airline before cancelling a trip

Most people don’t know that many airlines will refund you the cost of your flight if it’s cancelled due to a weather event or other emergency. So, before you cancel your trip, check with your airline to see if they offer this coverage.

4) In case of losing your luggage, check if you have any belongings that are insured by the credit card company

When you’re packing for a trip, the last thing on your mind is what you would do if your luggage was lost or stolen. But if it does happen, you’ll be glad you took the time to check your credit card’s travel insurance coverage.  If your suitcase has clothes and other valuables in it, you can file a claim with the credit card company and get reimbursed for those items. 

It may not seem like such an important issue at first, but when considering how much clothes cost these days, not having enough clothes could put quite a dent in your wallet!

5) If you are using another credit card while traveling, make sure you know what type of coverage you will get if something happens to your stuff

There are a few things to keep in mind when using your credit card for travel insurance. First, check what type of coverage you have on your card. Second, make sure you know what is and is not covered under that policy. Third, be aware of any exclusions or limitations. Fourth, read the fine print carefully so that you understand the terms and conditions of the policy. Fifth, consider buying additional coverage if you feel you need it. Sixth, be sure to keep all documentation and receipts in case you need to file a claim. Finally, remember that credit card travel insurance is not a substitute for comprehensive travel insurance.

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6) Are there any limitations? What are they?

Most people are aware that credit card travel insurance has some limitations. For example, you may not be covered if you book your travel using rewards points. But did you know that there are other potential coverage issues that could trip you up? 

7) Can I buy more protection? Is it worth it?

When it comes to credit card travel insurance, there are a few things you should know in order to avoid any unwanted surprises.  For example, many cards have an annual limit on how much coverage they offer for different items. In other words, the limit might be $1 million for baggage and $2 million for trip cancellation and interruption, but if your luggage is lost or stolen and your flight is canceled due to natural disaster, your coverage will be limited to $1 million.

8) If something happens at home, can I still use my insurance abroad? Or vice versa?

Unfortunately, no. Your credit card travel insurance only covers you for events that happen while you’re on your trip. So if something happens at home, you’ll have to rely on your regular insurance coverage. And if something happens while you’re abroad, your credit card company’s travel insurance will be the primary coverage.

9) If my medical emergency isn’t urgent but needs to be fixed within 24 hours, do I need to pay a fee if I decide to cancel my trip and go home instead?

If you’re not sure whether or not your medical emergency is covered by your credit card’s travel insurance, it’s always best to err on the side of caution and cancel your trip. That way, you can avoid any out-of-pocket costs. But if you do need to cancel for a medical emergency that is urgent, be aware that there may be some fees associated with cancelling. Some credit cards will charge a fee for the number of days remaining before departure when you decide to cancel your trip for a medically necessary reason.

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10) Can I dispute an incorrect charge from my travel insurance provider?

If you have a problem with a purchase you made using your credit card, you have the right to dispute the charge with your card issuer. This is called a chargeback. A chargeback means that you are getting money back from your credit card company. It can take up to 60 days for this process to be completed and for you to receive your refund. 

The same thing can happen when a travel insurance provider wrongly charges you for something or does not provide service that they are supposed to offer (for example, if they don’t pay out on a claim). You may need to contact the issuer of the credit card used in order to get reimbursed if this happens.