Travel insurance is a protection against anything bad that happens to you while you are traveling somewhere. People travel for business, holidays, medical purposes, etc. Things can go wrong when you are traveling. Like the loss of luggage, cancellation of travel, accidental injuries, or deaths. In these cases you find yourself spending extra money that you haven’t planned. Here comes the savior, credit card travel insurance.
Things can be less expensive if you are purchasing your travel costs with the help of the credit card. Almost all the renowned credit card companies help you to cover the unexpected costs that you may have to do while you are on a vacation or a business trip. It insures you if you face any disruption in your trip.
In this article, we are going to discuss the type of travel insurance you can get by using your credit card as a payment option.
Credit Card Travel Insurance Protects From:
1. Car Rental Insurance
Credit card car rental insurance covers you if there is any damage or theft of the rental car up to a limit. So check the limit of the credit card insurance before you purchase the plan.
Usually, there are two types of car rental insurance. They are primary and secondary car rental insurance. In primary car rental insurance if an accident occurs it won’t affect your personal auto insurance policy. There is no need to file a claim from your auto insurance policy. Your premium will remain the same. The credit card company is going to cover the damages and losses.
On the other hand, if you are going for the secondary car rental policy you have to file a claim both from the auto insurance policy that you are having and the credit card that you are using. The credit card will pay for the money which the auto insurance won’t cover.
So if you want to take advantage of the credit card you have to drop the car rental insurance from the rental company and pay the total rent with your credit card.
2. Loss of luggage or Baggage delay insurance
The credit card travel insurance offers you baggage insurance. When you are traveling in a common carrier like bus, train, or airplane there is a chance of baggage loss or baggage delay. There are two types of baggage insurance. One is luggage lost and another is luggage delay. For this, you have to buy new clothes, toiletries, etc. It costs you extra money.
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In case there is a loss of luggage the credit card company is going to reimburse the cost of your luggage up to a certain amount. In case of a delay in luggage delivery, the company will pay for some selected items you may need during that time. So ask the company what kind of offer they are giving you in case of baggage loss or delay.
3. Delay in trip insurance
People usually book there tickets and hotels before going on a trip. But there is always a chance of delay in the trip or reschedule on the trip. In that case, if travel insurance is already there it is easier for you to get back your money. If you are paying by the credit card there is trip delay insurance attached with it in most of the cases.
Suppose there is flight cancellation due to bad weather it will affect your trip schedule. Credit card travel insurance may reimburse the money you have spent on lodging and food items during that period. So check with the provider to know more about the travel insurance policy.
4. Trip interruption and cancellation insurance
Just before the trip if there is a medical emergency in your home, or there is an important meeting that you cannot miss in that case you have to postpone your trip or may cancel it.
In these types of cases if there is no travel insurance you will lose a lot of money. Some of the credit card companies offer trip cancellation or interruption insurance. So if you are paying by the credit card, there is no need to buy travel insurance. It reimburses your money in case you need to cancel your trip due to sickness, bad weather, or other unexpected situations.
5. Travel accident insurance
Accidents can happen to anyone anywhere. So while you are on tour it is important to take accidental insurance. Suppose you or someone from your family gets seriously injured while you are on an international tour, your usual medical insurance won’t cover it. Now if you don’t have travel accident insurance you can find yourself in a lot of trouble. This type of credit card travel insurance helps you to find doctors and hospitals nearby. It pays for your medical expenditure. Thus it saves a lot of money for you.
6. Emergency evacuation insurance
If you are paying by the credit card you can avail of another type of insurance. It is emergency evacuation insurance. If you are going on a mountain trip there is a risk of an accident. You can injure yourself by falling or get hurt by wild animals.
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At that time nobody is there to help you. Emergency evacuation insurance comes into play for these situations. It evacuates you from those situations often by helicopters to the nearby hospitals or takes you back to your home where it will be easier for you to do the needful treatment. It is a lifesaver. So if you are going on a dangerous trip you should have this credit card travel insurance in your portfolio.
Final Words
These are the type of insurance policies you can get by paying via credit card. But in most cases, the credit card issuer tells you to pay all your travel expenses through credit card. People prefer paying selected items by credit card. So check the policy of the issuer before purchasing tickets or booking hotels by credit card. Tally the expenses. If it is becoming costly when you are paying by the credit card then opt for simple travel insurance. It will cost around 5% of your total trip cost. You can also take help from your insurance advisor.
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