At O1ne Mortgage, we understand the importance of being well-prepared for life’s unexpected events, especially when it comes to travel. Whether you’re planning a dream vacation or a business trip, having the right travel insurance can make all the difference. In this blog, we’ll explore the ins and outs of credit card travel insurance, what it covers, what it doesn’t, and whether it’s worth it. If you have any mortgage service needs, don’t hesitate to call us at 213-732-3074. We’re here to help!
How Does Travel Insurance Work?
Travel insurance is designed to reimburse you for expenses covered by your plan if your trip is canceled, delayed, or interrupted due to circumstances beyond your control. For instance, if a severe thunderstorm causes your flight to be canceled, resulting in a missed connection, your travel insurance will typically cover the costs. However, if you simply oversleep and miss your flight, you won’t be covered.
To qualify for reimbursement, expenses usually need to be non-refundable, and you must have paid for them with a credit card that includes travel insurance. Some plans may also cover unexpected expenses for trips that end earlier than planned. Reimbursable expenses can include prepaid hotel stays, flights, excursions, and more. Coverage amounts, terms, and conditions vary depending on the card, so it’s essential to read the fine print.
Keep all your receipts in case you need to file a claim, and act quickly if the unexpected happens. Some credit card travel insurance plans have time limits for filing claims to receive reimbursement.
What Does Credit Card Travel Insurance Cover?
Credit card travel insurance can cover various aspects depending on the card you have. Check your card’s benefits guide for complete details about whether your card offers travel insurance, what it covers, how much it covers, and what exclusions apply. Here are some common protections a card may offer:
Trip Cancellation and Interruption
This benefit kicks in when you must end your trip early or cancel it altogether due to unforeseen circumstances. Common covered reasons include illness, injury, death of a family member, and severe weather. If your trip is interrupted rather than canceled, you’ll only be reimbursed for the portion you miss—not the entire trip. Maximum reimbursement amounts apply.
Trip Delay
If your flight is delayed, this benefit reimburses you for additional expenses, such as a hotel stay or meals while you wait for the next flight. Your original flight must typically be delayed by a certain number of hours to qualify for reimbursement. If the delay is short, don’t expect to be reimbursed for extra expenses.
Lost or Damaged Luggage
This benefit reimburses you for items in your bags if they are damaged or lost by the airline. However, not all items qualify. Jewelry, electronics, and cameras are usually not covered, but clothing and toiletries typically are.
Rental Car Insurance
If your rental car is stolen or damaged in an accident, some credit card travel insurance plans offer coverage. To qualify, you usually need to waive collision coverage from the rental company. Remember, this coverage only pays for physical damage or theft of your rental, not liability to other drivers or injuries you may sustain.
Medical and Evacuation
If you get sick or hurt while traveling abroad, this benefit can help cover your medical costs if your primary insurance won’t. It may also cover transportation to a medical facility in a different location if you can’t receive the treatment you need where you are.
Travel Accident Insurance
If you are seriously injured, maimed, or die on your trip, this benefit may pay you or your beneficiaries. Payment amounts vary by card, and eligibility depends on the extent of the injury and where it occurred.
Travel and Emergency Assistance
If an emergency arises while you’re traveling, this service can help you navigate it. Travel and emergency assistance services can help you send messages to family members, find nearby doctors, dentists, and hospitals, and get prescription assistance. It may also include referrals for English-speaking attorneys, U.S. embassies and consulates, emergency translation services, and more. However, the cost of all services you receive is your responsibility.
What Doesn’t Credit Card Travel Insurance Cover?
While credit card travel insurance can provide some protection, it doesn’t cover everything. Here are some common exclusions:
Travel for medical treatment: If the purpose of your trip is to obtain medical treatment, the benefits for emergency medical care and evacuation likely won’t apply.
Pre-existing conditions: If you have a pre-existing condition that results in canceling your trip or cutting it short, travel insurance won’t cover you.
A change of heart: If you change your mind and decide not to go on your trip, you’ll be on the hook for any non-refundable expenses.
Adventure trips: High-risk activities like skydiving, parachuting, or hang gliding are often excluded from coverage.
Pandemics: Travel disruptions due to pandemics are typically not covered.
War: Losses resulting from war or civil unrest are usually not covered.
Substance abuse: Illnesses or injuries that occur while using alcohol or controlled substances are not covered.
Which Credit Cards Offer Travel Insurance?
Not all credit cards offer travel insurance. It’s typically available with general travel cards, airline cards, hotel cards, and other premium credit cards. Many of these cards charge an annual fee, so it’s important to ensure that the benefits you receive outweigh the cost of carrying the card.
Is Credit Card Travel Insurance Worth It?
Whether credit card travel insurance is worth it depends on your perspective. Consider this: In 2023, 1 in 5 U.S. flights was delayed. If you were relying on one of those flights to get you to a cruise terminal on time, but the ship had already left port by the time you arrived, travel insurance could help you recoup the money you paid for the cruise and any excursions you had booked.
The Bottom Line
Credit card travel insurance can help protect you from financial losses if your plans are disrupted due to circumstances beyond your control. Having a credit card with this benefit and other travel protections can be invaluable for trips. If you don’t already have one, consider getting a card that offers these benefits.
However, credit card travel insurance doesn’t cover everything, and policy limits may be low. It’s crucial to understand what your policy will and won’t cover before your trip begins. If you travel extensively, a stand-alone travel insurance policy with more comprehensive coverage may be worth considering.
At O1ne Mortgage, we’re committed to helping you navigate life’s financial challenges. If you have any mortgage service needs, call us at 213-732-3074. We’re here to provide the support and expertise you need. Safe travels!
