Whenever we think of travelling to any destination, whether foreign or domestic, we pray for a successful and smooth trip. But this is not always the case for all. There may be instances where you cannot anticipate situations like illnesses, flight delays and trip cancellations. However, you can plan for such unexpected situations by purchasing travel insurance.
Many travellers may presume their credit card offers will cover everything as compared to a travel insurance policy purchased online. However, with lower card limits and benefits, credit cards may fall short during emergencies. Keep reading to know why credit card travel insurance is not enough to protect you most during trips.
What is Credit Card Travel Insurance?
Credit card travel insurance refers to the complimentary insurance coverage some credit card companies offer their cardholders when they use their cards to book travel reservations and accommodations.
It is an added benefit that helps travellers during emergencies on their trip, reducing their financial burden and stress. Furthermore, credit card travel insurance offers coverage for trip cancellations or interruptions, medical emergencies, lost baggage and accidental death.
Do All Credit Cards Have Travel Insurance?
Most credit card travel insurance is not a substitute for a traditional insurance plan. Different cards offer different mixtures of benefits to the cardholders. In this scenario, the cardholder must confirm whether the financial institutions provide trip protection features or not.
If the institutions offer such coverage, they must learn about the terms and conditions before proceeding with their travelling itinerary. Here are a few things that cardholders must consider to avoid the misunderstanding during emergencies.
- Verify whether the credit card travel insurance covers trip cancellations with reasons that align with your requirements.
- Confirm whether the financial institution will reimburse the trip’s entire cost during trip cancellation.
- Ensure whether they offer any medical expense coverage and emergency evacuation while you are travelling.
- Verify if they consider pre-existing medical conditions of you and your co-traveller.
In case you are not pleased with the credit card travel insurance, then you should opt for travel insurance online.
Why is Credit Card Travel Insurance Riskier Than Regular Travel Insurance?
There are many limitations when it comes to the type of coverage the credit card travel insurance offers than the regular travel insurance. One of the crucial differences is the extent of coverage the credit card companies offer.
Moreover, in terms of benefits like trip cancellation, evacuation coverage and pre-existing medical conditions, credit card travel insurance may fall short. Here are some factors you must consider to make the right decision.
-
Pre-existing Diseases
Regular travel insurance policy offers special add-ons or waivers for several pre-existing medical conditions. Nevertheless, credit card travel insurance generally does not cover pre-existing diseases. If you want coverage for such diseases, you have to pay a higher price.
-
Customised Plans
In the case of regular travel insurance plans, you get the option to choose the sum insured and other benefits before purchasing them. Moreover, there are many optional add-ons available for overseas travel insurance that credit cards may not offer. They may not have versatile plans that will align with everyone’s requirements.
-
Medical Coverage Benefits
Most of the regular travel insurance policies offer medical and evacuation coverage to policyholders. However, if your credit card does not provide the right coverage, then, in most cases, it will offer medical coverage while you are travelling.
-
Floater Option
Travel insurance plans are generally available for individuals as well as dependents. Nevertheless, these may not be available when you avail yourself of credit card travel insurance.
-
Affordability
Most credit cards offer free trip protection to cardholders, but there may be limitations and they may not fulfil your requirements. Moreover, if you want to opt for additional features, you may have to pay a higher price. Hence, you can opt for the best travel insurance offered by some insurance companies at an affordable price with more benefits.
-
Geographical Range
With several options available, you can buy a travel insurance plan that covers both international and domestic trips. Nevertheless, most credit cards offer limited coverage to cardholders that too for international trips only. Hence, you must purchase a different travel insurance for domestic trips.
-
Cancellation of Trip
When you have a travel insurance policy on your credit card, you will get trip cancellation or interruption coverage for very limited reasons. Nevertheless, the situation is different for regular travel insurance, as they offer many reasons for trip cancellation, increasing your chances of getting a reimbursement.
-
Ease of Purchase
Anyone can buy travel insurance according to their preferences. However, to avail the travel insurance benefits under a credit card, one has to get a credit card first. Some premium credit cards offer travel insurance with high annual fees and interest rates, making it difficult for everyone to afford.
What are the Things to Consider When Buying Travel Insurance?
When opting for travel insurance, you must consider several factors to choose the right coverage according to your requirements. Here are a few crucial things you must consider.
-
Know Your Coverage Requirements
Ensure you know your coverage needs before opting for travel insurance online, which will help you choose the policy. It includes medical expenses, trip interruption or cancellation, loss of baggage, etc.
-
Research Various Insurance Providers
Look for various reputable insurance companies offering travel insurance policies. Consider their customer reviews, reputation and financial stability. You can also do research online, ask for recommendations or consult a travel agent.
-
Compare Policy Coverage
Review the coverage the various insurance companies offer and look for their limits, deductibles and exclusions. Moreover, ensure the plan covers your destination, travel duration and activities you plan to participate in.
-
Evaluate Medical Coverage
As medical expenses can be expensive during your travels, it is crucial to have adequate coverage. Examine the coverage of medical emergencies, doctor visits, hospitalisations, etc. In addition, you must ensure the policy covers pre-existing medical conditions.
-
Compare the Policy Costs
Consider the policy amount of various insurance policies against their coverage and benefits. It will help you choose the best travel insurance that aligns with your budget.
Bottom Line
Overall, credit card travel insurance may be lucrative to many as it offers free travel insurance, but it may fall short compared to regular travel insurance. Moreover, travel insurance is more flexible and offers more comprehensive coverage than credit card travel insurance. In short, the benefits of purchasing travel insurance at an affordable price outweigh the benefits the credit card offers.
CAclubindia
