August 23. Some credit cards offer built-in travel insurance as a cardholder benefit. And it may be tempting to rely on credit card travel protections instead of buying travel insurance. But, the entire point of travel insurance is to be covered if something goes wrong. So, you may be wondering whether you should buy travel insurance even if your credit card offers travel protection.
At a high level, you can pay a relatively small premium (compared to the total cost of your trip) to buy a travel insurance policy that may provide reimbursement or coverage for unexpected issues that affect your trip.
Many different types of protections fall under the term «travel insurance.» Standard, comprehensive insurance policies typically include broad coverage across various potential issues.
Some cards don’t provide any special travel protections. But, many of the best travel rewards cards offer travel protections. Here’s a look at our guides about some of the most common credit card travel protections:
- Trip delay reimbursement
- Baggage delay reimbursement
- Trip cancellation and interruption insurance
- Travel accident and emergency evacuation insurance
As you book trips, you may wonder whether you should purchase travel insurance. One way to decide is to consider whether you’d be adequately covered without purchasing travel insurance if the worst happens.
If you’re willing and able to cover the costs in this situation — or you feel confident you’d be adequately covered by your credit card’s travel protections and health insurance — then you may want to proceed without buying travel insurance. Otherwise, I recommend purchasing a travel insurance policy shortly after you make the initial payment for your trip.
Source: The Points Guy