Some credit cards have travel insurance built in as a cardholder benefit. And you may be tempted to rely on credit card travel protection instead of purchasing travel insurance. But the key to travel insurance is that if something goes wrong, you are fully covered. So you may be wondering whether you should buy travel insurance even if your credit card offers travel protection.
There is no one answer that fits every traveler or situation. Therefore, in this guide, I will look at some aspects to consider and discuss my views on this topic. Let’s take a closer look so you can make an informed decision for yourself.
Travel Insurance You Can Buy
At the higher end, you can pay a relatively small premium (relative to the total cost of your trip) to purchase travel insurance, which can provide reimbursement or coverage for unexpected problems that affect your trip.
The term “travel insurance” includes many different types of protection. A standard, comprehensive insurance policy typically includes extensive coverage for a variety of potential problems.
However, there are also policies that provide specific coverage. For example, you can purchase travel insurance (such as GeoBlue) that only provides medical protection for international travel. Likewise, you can purchase an insurance policy that allows you to choose the coverage you need (for example, the self-organized option of American Express travel insurance).
We have previously compared the best travel insurance policies and providers. So check out that guide to find the provider and policy that best suits your needs. You can also check out travel insurance aggregators to quickly compare different insurance products.
Most travel insurance policies exclude losses caused by pre-existing conditions. However, many policies include a process for obtaining a waiver of the pre-existing condition exclusion if you meet certain requirements. These requirements typically include purchasing the policy immediately after making the first non-refundable travel expense payment or deposit and being medically able to travel at the time the policy is purchased. Some companies require you to cover the full, non-refundable, prepaid travel cost to qualify.
Likewise, all travel insurance comes with some exclusions. For example, most plans exclude medical coverage for injuries sustained during adventure activities such as skydiving or skiing off maintained trails.
Related: 7 things to keep in mind when purchasing travel insurance, according to experts
daily newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides, and exclusive deals from TPG experts.
Credit Card Travel Protection
Some cards don't offer special travel protection. However, many of the best travel rewards cards offer travel protection. Here's a guide to the most common credit card travel protections:
For more information on which card is best for you, check out our guide to the best cards with travel protection. We also recommend reading our guide to the benefits of your specific card. That's because this article details what protections you can expect when making travel purchases with your card.
Some benefits require enrollment, and virtually all require a formal claim process with no guarantee of reimbursement.
Related: Buy Credit Card Travel Insurance to Cover Disney Cruise Change Fees
When to Buy Travel Insurance
Even if you have a credit card that offers travel protection, you may want to purchase travel insurance for some of your trips. Here are some scenarios and trips where it may make sense to purchase travel insurance.
Travel protection is not provided
As explained above, not all travel credit cards offer extensive travel protection when you use the card to book travel. So, if you have a card that doesn't have travel protection or a card that only offers limited travel protection, it's a good idea to get travel insurance.
Related: Best Credit Cards to Book Flights
Some travelers are not covered.
Just because your card offers travel protection doesn't mean everyone traveling with you will be covered. Notably, travel protection typically only applies to some of the cardholder's relatives. Your credit card's travel insurance may not cover your friends, employees, and all relatives.
Related: Who is Covered by Credit Card Travel Insurance?
adventure activities
If you plan to engage in activities that are excluded from most insurance policies, it may be a good idea to purchase travel insurance that explicitly includes your chosen activities.
For example, many policies exclude adventure sports such as base jumping, skydiving, free soloing, diving, mountaineering, and paragliding. You may want to consider purchasing insurance from associations associated with adventure activities, such as the Divers Alert Network (DAN) if you are a diver, or the German Alpine Group (DAV) if you participate in alpine sports.
If you are concerned about a pre-existing condition
Most credit card travel interruption and cancellation insurance benefits exclude cancellation or interruption due to a sudden recurrence of a pre-existing condition. Therefore, if you want trip cancellation and interruption insurance that covers pre-existing conditions, we recommend purchasing travel insurance and making sure you meet the provider's pre-existing condition exclusion waiver.
Related: 7 Times Your Credit Card's Travel Insurance Won't Cover You
Non-medical evacuation insurance
If you want evacuation insurance for non-medical reasons, you will need to purchase travel insurance that offers this coverage, even if you have a credit card that includes it.
Evacuation benefits may not cover all of your evacuation needs, so read your Benefits Guide carefully. For example, some policies, if you have booked travel, will not cover evacuation from an area with a travel warning, or from a location that suddenly becomes inaccessible due to a landslide or other environmental incident.
Related: Medjet Medical Transport Membership is different from travel insurance.
Cancel for any reason
Let's say you're not sure if you'll be able to go on a trip, and you're worried that your credit card travel protection won't cover you if you decide to cancel or stop for a reason that isn't covered. In such cases, it may be a good idea to purchase travel insurance that allows you to cancel for any reason.
Related: 6 Truths and Myths About Cancelling Travel Insurance for Any Reason
you want peace of mind
Some travelers prefer to purchase travel insurance for each trip or through annual travel insurance for the peace of mind that comes with purchasing travel insurance. Especially considering the challenges travelers face with certain credit card insurers, it may be a good idea to purchase a travel insurance plan if you are unsure whether a combination of credit card travel insurance and personal health insurance will provide you with sufficient coverage while traveling.
Related: Here's why you should buy annual travel insurance, even though you can get travel protection with your credit card.
When credit card travel protection is enough
Let’s say you don’t fall into any of the above categories and you use one of the best credit cards that includes travel insurance when you make your travel purchases. In this case, you may decide that your credit card protection is sufficient for part (or all) of your trip. However, we recommend relying on credit card protection only if you have health insurance that will provide adequate coverage at your destination.
Below is a collection of reasons why you may want to rely on credit card protection instead of purchasing independent travel insurance. If some (or most) of these reasons apply to your trip, it may make sense to rely on credit card protection instead of purchasing travel insurance.
- You have private health insurance that covers you while traveling, even if the treatment is out of network at your destination.
- Book your travel with a credit card that offers travel insurance.
- There are credit cards that offer medical evacuation benefits while traveling.
- Making refundable travel plans that can be canceled with little or no fees
- You tend to change your plans frequently or book trips at the last minute.
- Have an emergency fund to cover unexpected expenses if needed.
- If you need to, you have airline miles or transferable points that you can use to leave the area or return home.
- Avoid particularly high-risk activities and destinations.
The decision about whether to buy travel insurance is complex and personal. If you are not confident that your credit card protection and personal health insurance will provide adequate coverage, you may want to consider purchasing travel insurance.
Related: Why You Should Buy a Premium Credit Card Instead of Travel Insurance
Why credit card travel insurance is usually sufficient
After researching the best travel insurance policies and providers, I purchased travel insurance for a specific trip because I wanted political evacuation coverage.
However, for most trips, credit card protection and personal health insurance will provide sufficient coverage. In the end, my travels usually look like this:
- My flights are often award flights that can be canceled and redeposited for free, or flights with minimal change and cancellation fees.
- My stays can almost always be canceled without penalty right up to my stay.
- If you book a tour or activity, it will usually be made within a few days of the end of the tour or activity (or you can cancel for free).
- My health insurance provides out-of-network coverage outside the U.S., so my travel insurance only pays the deductible. Additionally, the out-of-pocket maximum for out-of-network care is low enough that you can cover it using your emergency fund.
- I use my Ink Business Preferred® credit card to book flights and pay taxes and fees for award flights. This credit card offers excellent travel protection with a $95 annual fee.
- There are plenty of airline miles and transferable points you can use to secure a last-minute one-way flight if you need to.
As you can see, for most trips, the benefits of purchasing travel insurance are minimal. The travel protections I use the most are travel delay protection and baggage delay protection. Both are available when you pay for your flight using your Ink Business Preferred credit card.
Related: Why the Chase Sapphire Reserve and Ink Business Preferred Combo is Perfect for Traveling Couples
conclusion
When you book a trip, you may be wondering if you need to get travel insurance. One way to decide is to consider whether you would have adequate coverage if the worst were to happen without purchasing travel insurance.
In these circumstances, if you are willing and able to cover the costs, or are confident that you will be adequately covered by your credit card's travel protection and health insurance, you may want to proceed without taking out travel insurance. Otherwise, we recommend that you purchase travel insurance immediately after you first pay for your trip.