Credit card travel insurance limitations

Credit cards often come with good travel perks, including accruing points for airline miles or access to airport lounges. Some credit cards also offer travel insurance benefits, the most common being trip cancellation and lost baggage benefits, and travel accident coverage.

Credit card travel insurance benefits can be helpful during many common travel inconveniences, but may not provide enough protection for some trips. A stand-alone travel insurance plan often offers more comprehensive protection, including to such as emergency health care and transportation benefits, than credit card travel insurance.

If you’re considering what sort of protection is best for your next travel plans, learn how to navigate exclusions and limitations for credit card travel insurance, and why a stand-alone travel insurance plan may provide more comprehensive protection.

Common limitations on credit card travel insurance

Credit card travel insurance often has more coverage limitations and lower caps on benefits than stand-alone travel insurance, and often offers fewer benefits overall, writes U.S. News & World Report.

Trip cancellation and delay protection limits

Only 29% of consumer credit cards offer trip cancellation benefits, providing $5,974 in coverage on average, according to a survey of credit cards by Wallet Hub. A select few offer $20,000 in trip cancellation benefits. Roughly 18% of consumer cards include travel delay benefits, providing $445 in coverage on average.

In comparison, a stand-alone Allianz Travel Insurance plan may reimburse certain non-refundable expenses — up to the total cost of your trip — if your trip is cancelled due to a reason included in your policy.

We reimburse up to $350 a day in non-refundable eligible expenses if your trip is delayed for a reason included in your policy, up to a maximum of $1,500. To receive the benefit, you must experience a travel delay of three or more hours.

Limitations on protection for baggage

Many credit card travel insurance plans offer reimbursement for baggage loss, theft or delay but the limits tend to be low, often as little as $100 per day of delay. An Allianz Travel Insurance plan may reimburse up to $1,000 in certain expenses if you luggage is lost, damaged or stolen.

Emergency medical benefit limits

Additionally, you may not be able to count on credit card travel insurance if you experience a medical emergency. Some credit card travel insurance policies offer travel accident insurance, which doesn’t reimburse medical expenses.

An Allianz Travel Insurance policy with emergency medical treatment and transportation benefits may reimburse up to $10,000,0000 in certain eligible emergency medical costs, including hospitalization and emergency transport.

Travel insurance with emergency medical coverage is a sound investment for any trip. You should know that your provincial or territorial health insurance plan may not fully protect you if you experience a medical emergency while travelling outside of your home province or territory. An Allianz Travel Insurance plan with emergency medical benefits may help you fill health coverage gaps.

A stand-alone travel insurance policy may also be a more comprehensive option for people with pre-existing health conditions. “ Most credit card trip interruption and cancellation insurance benefits exclude cancellations or interruptions caused by a sudden recurrence of a preexisting condition,” writes The Points Guy.

If your pre-existing condition has been stable for a certain amount of time, specified in your policy, most stand-alone insurance policies may provide coverage for a medical emergency related to the condition. Discuss term limits and medical proof of stable condition with your insurer.

Limits on trip cancellation benefits

Credit card travel insurance generally offers lower limits for trip cancellation and interruption coverage. Some premium credit cards provide $20,000 in coverage per trip, according to Business Insider. If you are a luxury traveller, that might not cover the full cost of your trip.

Allianz Travel Insurance may reimburse certain non-refundable expenses — up to the total sum of your trip — if your travel plans are cancelled or interrupted for a covered reason.

Conditions for activating coverage

Most credit card travel insurance plans require that a trip be purchased with the credit card to be eligible for benefits. If you want to use another form of payment for trip expenses, this may be inconvenient.

Tips for choosing travel insurance coverage

When deciding whether to rely on a stand-alone travel insurance policy or coverage provided by your credit card, it’s important to consider your specific needs.

For example, if you travel frequently during the year, a stand-alone, annual travel insurance policy may be a more flexible option. Annual Allianz Travel Insurance plans don’t have yearly, monetary limits on trip cancellation benefits.

Travel scenario: You’ve booked your honeymoon in Cancun for this summer, followed by your yearly family reunion the next province over. You’re also planning a third trip across the border to beat the winter blues later this year, and a girls trip to Paris in the spring. For one fee, an Allianz Travel Insurance plan provides coverage for an unlimited number of trips for 365 days.

Emergency medical protection is always an important consideration while travelling, particularly if you’re travelling in a remote region and your trip includes extensive outdoor recreation. Credit card travel insurance usually offers lower limits for emergency medical coverage than a stand-alone policy or instead offers travel accident coverage.

Travel scenario: You’re finally taking that trip to Japan you’ve been planning for years. A hike to the summit of Mount Fuji has been on your bucket list. But a fall on a less travelled route to the summit has derailed your plans. You’ve badly twisted your ankle (Or maybe it’s broken?) near the summit and can’t independently make your way down.

You’re able to phone first responders, who help you off the mountain and transport you to the nearest medical facility. Now, you face a potentially huge bill for the cost of emergency medical care and evacuation. A stand-alone travel insurance plan with high coverage limits may be ideal in this situation. Allianz Travel Insurance may reimburse up to $10,000,000 in eligible emergency medical treatment and transportation costs.

Be sure to read the fine print while shopping for and comparing travel insurance policies. Pay attention to key details such as term and coverage limitations, deductible amounts and policy exclusions. If you’re looking for emergency medical coverage, consider whether you need a policy that covers preexisting conditions, which often must be stable for a certain amount of time for you to receive coverage. Do your research to find the most comprehensive travel insurance coverage for your needs.

Get a quote for travel insurance today so we can help you travel with more peace of mind.