The Benefits and Limitations of Credit Card Travel Insurance

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Understanding Credit Card Travel Insurance

At O1ne Mortgage, we prioritize consumer education on credit and finance. This post aims to provide an objective view to help you make the best decisions regarding travel insurance. For any mortgage service needs, call us at 213-732-3074.

How Does Travel Insurance Work?

Travel insurance reimburses 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 cancels your flight, your travel insurance will typically cover the costs. However, if you miss your flight due to oversleeping, you won’t be covered.

Expenses must be non-refundable and paid with a credit card that includes travel insurance to qualify for reimbursement. Coverage amounts, terms, and conditions vary depending on the card.

What Does Credit Card Travel Insurance Cover?

Credit card travel insurance can cover various situations depending on the card. Check your card’s benefits guide for complete details. Common protections include:

• Trip Cancellation and Interruption: Covers unforeseen circumstances like illness, injury, or severe weather.
• Trip Delay: Reimburses additional expenses if your flight is delayed.
• Lost or Damaged Luggage: Covers items in your bags, excluding certain valuables.
• Rental Car Insurance: Covers physical damage or theft of your rental car.
• Medical and Evacuation: Covers medical costs and transportation to a medical facility if needed.
• Travel Accident Insurance: Provides payment for serious injuries or death during your trip.
• Travel and Emergency Assistance: Offers help in emergencies, including finding doctors and legal assistance.

What Doesn’t Credit Card Travel Insurance Cover?

While credit card travel insurance offers protection, it doesn’t cover everything. Common exclusions include:

• Travel for medical treatment
• Pre-existing conditions
• Change of heart
• Adventure trips
• Pandemics
• War
• Substance abuse

Which Credit Cards Offer Travel Insurance?

Not all credit cards offer travel insurance. Typically, general travel cards, airline cards, hotel cards, and other premium credit cards provide this benefit. Many of these cards charge an annual fee, so ensure the benefits outweigh the cost.

Is Credit Card Travel Insurance Worth It?

Whether credit card travel insurance is worth it depends on your perspective. In 2023, 1 in 5 U.S. flights was delayed. Without travel insurance, you may not recoup the money paid for non-refundable expenses if your trip is disrupted. However, if your credit card includes travel insurance, you may be able to get some or all of your money back.

The Bottom Line

Credit card travel insurance can protect you from financial losses due to trip disruptions. However, it doesn’t cover everything, and policy limits may be low. Understanding your policy’s coverage before your trip is crucial. For more comprehensive coverage, consider a stand-alone travel insurance policy.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you make informed financial decisions.

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