Is My Credit Card Travel Insurance Enough?

Credit Card Travel Insurance

Today’s credit cards often come with perks, like signing bonuses or cashback programs. Many travel-related credit cards also offer credit card travel insurance as part of their benefits. But what kind of coverage will they actually provide for your next vacation? And is it enough?

Credit card travel insurance can be a great way to protect your travel investments, but keep in mind that these benefits often have limitations. So, let’s break down what credit card travel insurance is and the common benefits it offers to help you decide whether you need to purchase supplementary trip insurance.

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Does Every Credit Card Provide
Travel Insurance?

No! Credit cards with travel insurance benefits often come from two different sources: a bank or a travel-related business (i.e. hotel or airline). Most major banks provide at least one credit card that features travel insurance benefits as well as cashback programs.

Travel-related businesses such as hotels and airlines may promote their own credit card with travel insurance benefits and other incentives to encourage travelers to use their services the next time they travel.

3 Things to Remember When Applying for a Travel Credit Card

Keep these things in mind when looking at credit card travel insurance:

1. Credit Score – Credit cards that feature travel insurance benefits often require a higher credit score for approval. Many require a minimum credit score of Good (690-719) or Excellent (720-850). For example, The World of Hyatt credit card recommends a minimum credit score of at least 690, while Chase Sapphire Rewards recommends a minimum credit score of at least 720.

Check the card’s policy before applying to avoid a denied application. U.S. citizens can visit AnnualCreditReport.com for a free credit report from each of the three credit reporting agencies – Equifax, Experian, and TransUnion

2. Annual Fees – Take note of annual fees before applying for a travel credit card. Annual fees can range anywhere from $0 to $550.

3. APR – Note the APR (annual percentage rate), or interest rate, for any travel credit card you might apply for. Credit cards tend to a have a high APR, typically ranging from 15.6% to 22.9%, for those who are unable to pay their balance in full on each month’s due date.

What Coverage Should I Expect from Credit Card Travel Insurance?

Credit card travel insurance coverage can vary between cards and companies. Be sure to check your card’s specific benefits to learn what it would cover on a trip. Some of the most common travel insurance benefits included in travel credit cards include:

  • Trip Cancellation – This is coverage for nonrefundable trip expenses in the event you cancel your trip for a covered reason. (Only 29% of credit cards offer trip cancellation coverage, according to WalletHub.com.)
  • Trip Interruption – This is coverage for nonrefundable trip expenses in the event you need to end your trip early due to a covered reason.
  • Lost or Delayed Baggage – This provides coverage for luggage that is lost or delayed while in transit. (WalletHub.com shares that 32% of credit cards offer coverage for lost luggage, while only 16% offer coverage for delayed luggage.)
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What Is My Credit Card
Travel Insurance Missing?

Your credit card may not offer all the benefits of a trip protection plan. For more comprehensive coverage, consider a plan like Atlas Journey trip protection plan from WorldTrips. This plan goes beyond what most credit cards offer, providing extra coverage for unexpected medical expenses, lost luggage, trip cancellation, trip interruption, and more.

Let’s look at some of the benefits you may be missing out on when relying solely on your credit card travel insurance benefits. 

International Coverage

Learn whether your credit card provides both international and domestic coverage or just domestic coverage. You may consider  supplementary trip insurance if you plan to travel abroad.

Coverage for Expenses Paid Without Your Credit Card

Credit cards with travel insurance typically only cover travel expenses that are purchased using the credit card. If you happen to book accommodations with a different payment method, you likely won’t be covered for those expenses if your trip is interrupted or canceled. 

Coverage for Medical Expenses

Coverage for unexpected medical expenses is also not a common feature of credit card travel insurance. Additionally, many primary medical insurance policies provide only limited coverage once you cross the border to another country (or no coverage at all). 

In case you get injured or fall ill unexpectedly, look for a protection plan like Atlas Journey that covers both eligible trip cancellation costs and unforeseen medical emergencies like food poisoning or a broken leg.

Atlas Journey also included coverage for eligible medical evacuations. Learn what medical evacuation is and why you may want this coverage for your trip. 

Trip Cancellation for Any Reason (CFAR) Benefit

The option to cancel your trip for any reason is a benefit not often included in credit card travel insurance. Even if your credit card travel insurance includes a Trip Cancellation benefit, it will likely only reimburse you if you cancel your trip due to a covered reason. 

Those who want the reassurance of canceling for any reason can purchase a supplementary policy with the option to add a Trip Cancellation for Any Reason (CFAR) upgrade. A CFAR benefit can reimburse a portion of your trip expenses—often 50% to 75%. Keep in mind that you typically have to purchase your travel insurance coverage within a certain number of days of your initial trip payment date to be eligible for a CFAR benefit upgrade. 

The Atlas Journey trip cancellation plans from WorldTrips offer an optional CFAR upgrade to anyone who purchases a plan within 21 days of their initial trip payment date. Just select the CFAR optional upgrade during the purchase process!

What Is Comprehensive Travel Insurance?

Comprehensive trip protection can provide many important benefits you may be looking for in your travel insurance coverage, including trip cancellation reimbursement and emergency medical expense coverage. 

Atlas Journey trip cancellation plans can provide coverage beyond that of typical credit card travel insurance. Choose from one of three plan options with various coverage maximums and price points, including Atlas Journey Elevate, Atlas Journey Explore, or Atlas Journey Escape.

Some benefit highlights include: 

  • Trip Cancellation
  • Trip Interruption
  •  Travel Delay
  • Pre-Existing Conditions (included only if you meet the requirements outlined in the policy)
  • Trip Cancellation for Any Reason (optional upgrade available for the Elevate and Explore plans)
  • Emergency Accident and Sickness Medical Expenses
  • Medical Evacuation & Repatriation of Remains
If your credit card travel insurance falls short, it’s time to upgrade your coverage with an Atlas Journey trip protection plan. Get a quote today and ensure you have the comprehensive coverage you need for your next vacation. Don’t risk your trip – travel with confidence knowing you’ve got WorldTrips on your side.

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WorldTrips is a service company and a member of the Tokio Marine HCC group of companies.

WorldTrips’ Atlas Journey, Atlas Cruiser, and Atlas On-The-Go trip protection insurance products are underwritten by Tokio Marine HCC’s U.S. Specialty Insurance Company (USSIC). USSIC is a Texas-domiciled insurance company operating on an admitted basis throughout the United States. Coverage is available to U.S. residents of the U.S. states and District of Columbia only. This plan provides insurance coverage that only applies during the covered trip. You may have coverage from other sources that provides you with similar benefits but may be subject to different restrictions depending upon your other coverages. You may wish to compare the terms of this policy with your existing life, health, home, and automobile insurance policies. Coverage may not be available in all states.

In the State of California, operating as WorldTrips Insurance Services. California Non-Resident Producer License Number: 0G39705

WorldTrips’ Atlas Travel Series and StudentSecure international travel medical insurance products are underwritten by Lloyd's. WorldTrips has authority to enter into contracts of insurance on behalf of the Lloyd's underwriting members of Lloyd's Syndicate 4141, which is managed by HCC Underwriting Agency, Ltd.