Although most people don’t buy it, they’re more likely to make claims against travel insurance, according to industry statistics, than they are on their home, renters or auto insurance policies.
But most people don’t realize that they might already have travel insurance, free and automatic, whenever they charge a trip to their credit card. It’s all in the fine print you get when your card arrives in the mail — you know, that piece of paper you probably never read. And there are vast differences between different card brands — some have comprehensive coverage, others offer almost nothing.
The number one reason why people make claims against travel insurance is illness or injury occurring before travel (either involving the policy holder or a family member). And that’s precisely where credit card travel insurance shines most brightly. Needless to say, you have to charge your trip to the credit card in order to be covered.
Here’s a round up of key protections offered by various credit card issuers:
Chase Sapphire Card
Trip cancellation/interruption covers up to $10,000 per trip ($20,000 per year) for the cardholder or family members. Unlike some other cards, the definition of “family members” is unusually broad (domestic partners, in-laws, grandchildren, grandparents, aunts, uncles, nephews and nieces, etc.). Covered reasons for cancellation include accidental injury, illness (unless a pre-existing condition), and severe weather. Trip delay coverage of up to $500 kicks in after a delay or 12 hours or more (or one that requires an overnight stay). There’s also lost baggage coverage up to $3,000 and although this is excess insurance (over and above what you collect from the airline or other sources), unlike other some other cards it does include up to $500 for electronics such as cameras, which airlines don’t cover. There’s also delayed baggage coverage (defined as six or more hours) of $100 per day up to a maximum of $500.
Citibank AAdvantage Card
Citibank recently upped its maximum payouts. Maximum coverage per year for trip cancellation or interruption is now $5,000 as long as the trip, including all taxes and fees, is paid for with the card and the trip is less than 60 days. Covered reasons include sickness or injury, confirmed by a doctor in writing, that is severe enough to interrupt or cancel a trip; sickness or injury of a family member who requires your care; severe weather or natural disaster that cancels air travel to or from your destination for at least 24 hours; and several others. Trip delay protection is covered up to $500 and basically covers hotel and meals and includes delays caused by overbooking, weather delays, and strikes. Lost baggage coverage is up to $3,000 per person ($2,000 for New York State residents) and includes both checked and carry-on bags and doesn’t appear to exclude electronics; however coverage is over and above whatever the airline pays. Caveat: Citi’s definition of “who’s covered” only includes you, spouse and domestic partner, and dependents under 19 or 24 if a full-time student.
United Visa Explorer Card
Benefits are essentially the same as the Sapphire Card, although with slightly different coverage limits.
Hilton HHonors American Express Card
You’d think that American Express cards would have excellent built-in travel insurance, but they don’t (the “don’t leave home without it” people pioneered “purchase protection” but they’re shockingly weak in travel). One unusual benefit missing with some other cards: up to $1,250 in coverage for carry on bag loss or damage. Checked bags are insured only up to a paltry $500, although that includes $250 for electronics/valuables, such as that cell phone you forgot in the seatback pocket.
Capital One Ventures Rewards Card
No trip cancellation or delay coverage here, but there is $3,000 for both checked and carry-on bag loss. However, no electronics or valuables are included and, as with other cards, this is supplemental to any reimbursement you receive from the airline.
Discover Card
The only travel benefit offered is $500 if your checked bag is delayed more than three hours, but it’s relatively loophole-free and kicks in sooner than with other cards.