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How do we evaluate travel insurance policies?
to produce impartial product reviews.
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I have visited over 50 countries using points and miles, yet I still purchase additional travel insurance even though I get some coverage from my credit cards.
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Despite having top-notch travel credit cards, they still fall short of offering adequate international travel insurance for my peace of mind.
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Moreover, coverage only applies when using that specific card, which can be inconvenient at times.
As someone obsessed with travel rewards and credit cards, having utilized points and miles for trips across over 50 countries worldwide, numerous individuals inquire about my approach to safeguarding against potential unforeseen events that travel might entail. This strategy could be far more intricate than one would imagine.
It's accurate that I prefer using credit card travel insurance for various situations, particularly when travelling within my own country or hiring a vehicle in a new location. Nonetheless, my family opts for an annual travel insurance plan as well.
Allianz Travel Insurance
, which provides coverage for all our trips each year, regardless of the circumstances.
What’s the point of having travel insurance when my credit card offers benefits such as trip cancellation and disruption protection, travel delay coverage, and primary automobile rental coverage? Despite these advantages offered by credit cards, there are multiple key reasons for still obtaining travel insurance.
choose an annual travel insurance policy
for extra protection.
Credit cards provide inadequate (or no) coverage for unexpected medical costs.
While my own health insurance plan (from Anthem) should theoretically cover any emergency medical expenses I incur while traveling in the United States, the vast majority of trips I take are overseas. Unfortunately, my Anthem plan doesn't work overseas, and emergency medical coverage is one area where travel credit cards come up dramatically short.
The sole prominent travel credit card providing coverage for medical costs is the
Chase Sapphire Reserve®
It ranks among the top travel credit cards available, yet this particular card provides only $2,500 in coverage for unexpected medical and dental expenses during a covered trip, with a $50 deductible. Additionally, it covers up to $75 per day for hotel accommodations over five days following an injury that qualifies under your policy; however, such limits may fall short when dealing with serious health issues while traveling.
That’s precisely why I opted for an annual travel insurance policy for my household. The plan we got through Allianz includes up to $50,000 in medical expenses cover per person and each time we go on a trip, which means peace of mind when traveling.
Insurance coverage with credit cards often falls short when it comes to emergencies involving medical evacuations.
In addition to covering emergency medical expenses, I also aim to secure emergency medical evacuation coverage for my overseas travels. Such insurance is crucial as it can handle the costs associated with lengthy ambulance transports over great distances to hospitals in different countries, or even evacuations via helicopter when necessary. Furthermore, this type of coverage may extend to paying for transport back to one’s home nation should the state of their health require such measures.
In this aspect as well, credit card coverage falls behind. Once more, the Chase Sapphire Reserve® stands out among major travel credit cards for providing this particular coverage, but it caps at $100,000 per traveller. This level of coverage surpasses what is offered for medical expenses under this card’s benefits. Nonetheless, my
annual travel insurance plan
includes $500,000 in emergency medical evacuation coverage for each traveler and for every trip.
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You must use a credit card to pay for your journey for the insurance to be valid.
Ultimately, many individuals aren't aware that frequently you must use your credit card to cover major parts of your journey for the travel insurance coverage to be valid. To put it differently, simply possessing a
credit card offering travel insurance
isn't enough.
Note
Some credit cards, such as those offered by Chase which include travel insurance benefits, allow you to cover your trip expenses using either your reward points or a mix of credit card payments and rewards; this combined approach ensures that the travel protection takes effect.
Nevertheless, I occasionally employ various reward programs or credit cards for distinct journeys, which means my credit card travel insurance might not cover every trip. As an illustration, just last week, I utilized some stored points.
Delta SkyMiles
to cover the cost of our trip to Mexico for a holiday with my spouse. This assisted me.
score almost-free flights
That would have typically costs more than $500 each, but I only needed to cover the airline taxes and fees.
If obtaining travel insurance required using a credit card, I likely would have charged the trip to my Chase Sapphire Reserve® instead.
Sometimes I travel for business purposes, and in those instances, another firm usually covers the cost of my flights and accommodation. In such cases, without paying extra out-of-pocket, I would lack international coverage for medical costs or emergency evacuations.
Given that our yearly travel insurance for the entire family comes out to under $500, getting extra protection seems like a complete no-brainer. It provides peace of mind, ensuring we’re covered if either myself, my spouse, or any of our children fall severely sick or get hurt during trips abroad. While credit card travel insurance is beneficial as well, it doesn’t cover all scenarios adequately.
Not sure how to begin? Think about consulting a financial advisor.
Finding a financial advisor
It doesn’t have to be complicated. Utilize SmartAsset’s free service to connect with up to three fee-only financial advisors within your vicinity in just a few minutes. These advisors are rigorously reviewed and adhere to a fiduciary standard, ensuring they always put your best interests first.
Start your search now.
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