Many of us have credit cards that offer fun travel perks like redeemable travel rewards, no foreign exchange fees, airport lounge access, travel insurance and more. If you’re reading this, you probably already know how important it is to protect yourself with travel insurance. But not all credit cards and their perks are created equal; they’ll offer different limitations on travel insurance coverage, if they offer travel insurance at all.
Credit card travel insurance—what does it really cover?
While there are a handful of credit cards out there that do offer travel insurance (you can even use this comparison tool on rates.ca to check out a few), most credit cards offer very limited coverage. Before travelling, make sure you carefully read and understand the policy on your travel insurance, as they vary by card issuer. Chances are, you’ll find that you may not have as much coverage as you thought!
When you’re deciding whether to go with the travel insurance included in your credit card or to go with supplemental travel insurance, like TuGo’s Emergency Medical Insurance, the question to ask yourself is, which types of coverage do you need the most? Below are some points to think about while looking through your credit card travel insurance policy…
Types of travel insurance coverage
Your credit card may offer only one or some of these listed below. Depending on the trip planned, you might find that your credit card travel insurance isn’t as comprehensive as it should be for your needs. Another thing to take note of are the maximum amounts you’re covered for. You may be covered, but if the coverage amount is limited, it isn’t going to help you much in the event of medical emergency outside of Canada!
- Is Emergency Medical Insurance offered?
- Is coverage for COVID-19 offered?
- Is Trip Cancellation & Trip Interruption Insurance offered?
- Are you covered for high-risk Sports and Activities?
- Are you compensated for any trip delays, through services like MyFlyt™?
- Is Baggage Insurance offered?
- Is Rental Car Protection offered?
Who can have coverage
It’s good to clarify beforehand exactly who is covered by your credit card. There are often restrictions that you may not to think of checking before leaving on vacation. Here are some important questions to ask when contacting your credit card travel insurance provider:
- Is coverage limited to only me, the cardholder, or can it also apply to family members travelling with me?
- Do I need to purchase additional insurance for other travellers in my family?
- Is travel medical coverage limited to certain ages?
- Am I covered for pre-existing medical conditions? If so, what is the stability period?
- What’s the coverage for unstable pre-existing medical conditions?
- In the event of an emergency, would coverage be available to return my travelling companion, children or grandchildren, or accompanying pet home?
Coverage period
While you might have established who can have what type of coverage, you should also ensure that the coverage period offered by your credit card actually meets your travel needs. The trip you planned might even exceed the pre-determined number of days of coverage, which will leave you unprotected for the remainder of your vacation.
- What’s the maximum number of days covered for a single trip?
- Does age affect the length of the coverage period?
With a Multi Trip Annual plan, you can select the number of days you’d like to be covered for and customize it to your needs. You can mix it up by taking short trips across the border for those quick getaways and shopping sprees, and adding extensions for longer trips away.
Other considerations
- In the event of a claim, is a deductible applied, or is there 100% reimbursement by the credit card?
- Do you have to pay for the whole trip with the same credit card in order to be covered for Trip Cancellation?
- Are you still covered if you book your trip by redeeming travel rewards, or is coverage only for trips you pay for (with the same credit card)?
- Is 24/7 toll-free emergency medical assistance available?
Another consideration to keep in mind is access to services like TuGo Telemedicine. This 24/7 service provides prompt, convenient, expert care right over the phone to those who need medical advice, but don’t think a clinic or hospital is needed.
Lastly, for credit cards that offer better-than-average coverage than their competitors, cardholders will more often than not have to pay higher annual card fees. If you don’t travel frequently enough, and are just after the added value of travel insurance, it may not be worth it for you to take on this additional cost. The better option is to treat credit card travel insurance as a nice-to-have supplement to travel insurance, but not in lieu of it. After all, you wouldn’t want to be only partially protected while on vacation, would you?
Safe travels,
Justin
Editor’s Note: This post was originally published in February 2017, and has been updated for freshness and/or accuracy.
