On family holiday or office trip? Can you rely completely on credit card travel insurance? Find out

November 21, 2018 11:08 AM

Some credit card companies offer free travel insurance as a benefit along with the card. However, does that complimentary travel insurance offer enough protection?

credit card travel insurance, credit card, travel insurance, Is credit card travel insurance enough, Medical cost, Evacuation Cost, Trip Cancellation CostThe best travel insurance for you completely depends on your trip and what all you want to be covered for in a foreign land.

The best type of insurance is actually the one that you never have to use. Travel insurance is no different! You are happy to pay for it but hope you never really have to use it.

Some credit card companies offer free travel insurance as a benefit along with the card. And don’t we all love freebies? But have you ever wondered if that complimentary travel insurance offers enough protection for all the kinds of possible mishaps that can occur when you travel?

If you are embarking on a vacation overseas and are trusting your credit card travel insurance to cover your travel completely, it’s time to take a closer look. This is because there is very little chance that your free travel insurance will offer you all the needed benefits, or even the basic ones! Moreover, the companies that claim to offer all benefits often charge a hefty annual fee, way more than you would pay for basic travel insurance. The fact – a credit card travel protection is never comprehensive travel insurance!

Here are some prominent reasons that support why you must not completely rely on your credit card travel insurance.

1. Medical/Evacuation Costs Not Covered

If you injure yourself or require an emergency medical treatment while on holiday outside your home country, get ready to face huge costs. This is because credit card travel insurance does not have the same level of medical emergency coverage as comprehensive travel insurance. A medical emergency while travelling can completely bankrupt you with huge medical bills if you depend solely on your credit card travel insurance.

2. Trip Cancellation Cost Coverage is Significantly Lower

The trip cancellation policy offered with travel insurance allows you to cancel your trip in case of an emergency and get the trip costs reimbursed. Of course, most travel insurance with credit cards also allow you to cancel your trip. But there’s a catch! With it, the maximum coverage allowed for your trip can be as low as 25% of the entire trip cost. However, the maximum reimbursement for a cancelled trip with comprehensive travel insurance is significantly higher and can cover up to 90% of the travel cost.

3. Number of Exclusions is Much Higher

Like comprehensive travel insurance, credit card travel insurance also comes with numerous exclusions. The number of these exclusions however is much higher in credit card travel insurance. With comprehensive travel insurance plans, you get a plethora of options to override some of the exclusions, which is not possible with credit card offered travel insurance as it cannot be customized.

4. Limitations with Cancellations

With a credit card offered travel insurance, the trip cancellations are only allowed if the reason you state for cancelling the trip is well stated under the policy. Also, the list of covered reasons with the credit card travel insurance is extremely limited. Some of the typical reasons covered include accidental incapacitating injury, serious diseases and death.

Comprehensive Travel Insurance – Taking Care of all Your Travel Needs

This type of travel insurance is usually provided by online insurance aggregators that allow you to compare different available options and purchase one as per your specific needs at most affordable prices. Comprehensive travel insurance provides maximum and complete coverage including medical expenses, transportation insurance, trip cover and insurance for personal belongings that may get lost or stolen during the travel.

Picking the Best Travel Insurance

The game is quite simple; the best travel insurance for you completely depends on your trip and what all you want to be covered for in a foreign land. While on a business trip, you will mostly need an insurance cover for your lost luggage or passport and flight delays/cancellations. If, however, you are headed for a fun-filled vacation with your loved ones, medical coverage must be the priority along with the usual lost baggage and flight delay cover. It helps to think about all the possible situations you might encounter and want covered while travelling when picking the best travel insurance policy for you.

(By Tarun Mathur, Chief Business Officer-General Insurance, Policybazaar.com)

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