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Do I need credit card travel insurance?

Written by Edited by
Published on October 23, 2024 | 7 min read

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Key takeaways

  • Some typical travel insurance benefits include trip cancellation and interruption insurance, trip delay reimbursement, emergency medical coverage, emergency medical evacuation, lost or damaged baggage insurance, delayed baggage insurance and car rental insurance.
  • Many top travel credit cards provide enough travel insurance benefits to protect you in an emergency or if your plans change, so purchasing extra travel coverage likely won’t be necessary.
  • However, if you plan to book an expensive trip or travel abroad for an extended period of time, you might want to purchase travel coverage. Check with your card issuer to confirm any coverage terms and conditions before purchasing any additional policies.

Now that travel is back in full swing, it’s time to plan your next exciting getaway. With all the fun that comes with traveling to new locales, you always risk running into expensive problems far from home. Lost luggage, canceled flights, injuries, rental car mishaps — all sorts of inconveniences can occur when traveling. One way to soften the blow of travel disasters — at least financially — is to have travel insurance.

What is travel insurance?

Travel insurance helps provide financial compensation for mishaps like lost or stolen luggage or if you need to cancel a trip for reasons that are beyond your control. In the event of a qualifying incident, you can file a claim with the insurance company to get money back for certain expenses, up to a previously agreed-upon limit. You can purchase travel insurance policies from insurance providers — or you can take advantage of travel insurance benefits offered by your credit card provider.

Fortunately for travelers, many credit cards offer some form of travel insurance to cardholders, and some of the top travel credit cards offer an impressive lineup of travel protections. However, credit card travel insurance works a bit differently than a travel insurance policy you purchase.

As a rule, credit card travel insurance doesn’t typically offer the same level of comprehensive coverage you’d get from a purchased policy. You also can’t choose what type of coverage you receive. That said, many travel credit cards offer some level of coverage for issues like trip cancellation and interruption, trip delays, lost luggage, baggage delays, rental cars and travel accidents.

If you’re considering buying separate travel insurance, it’s worth learning what type of coverage your credit card offers before paying for protection you may already have. One easy way to find out what your credit card covers is to call your credit card provider and have them walk you through your card’s benefits guide.

What is credit card travel insurance?

Credit card travel insurance is a complimentary benefit that commonly comes with credit cards. While it isn’t the most robust coverage, this protection can help out with various travel-related emergencies and inconveniences. When cardholders use their credit cards to book travel arrangements such as flights, hotels or rental cars, they may automatically become eligible for these insurance benefits. The key element here is to book at least your flights or other transportation using the credit card, or you won’t qualify for the coverage.

Typically, credit card travel insurance includes coverage for trip cancellations, trip interruptions and delays, as well as lost or delayed baggage. Some cards may also provide coverage for emergency medical expenses, evacuation and rental car insurance. The extent of coverage varies among credit cards and may depend on factors such as the card type, the issuer and the terms and conditions outlined in the card agreement.

It’s important for cardholders to review the specific details of the travel insurance offered by their credit cards, including any limitations, exclusions and requirements for activation. While credit card travel insurance can be a valuable perk, you may want to consider purchasing additional coverage for more thorough coverage.

What does travel insurance cover?

To make it easier to understand what travel insurance covers, we’ve broken down the most common types of coverage:

Coverage for canceled, interrupted or delayed trips

Coverage for emergency medical situations

Coverage for lost, damaged or delayed baggage

Coverage for rental cars

How to use credit card travel insurance

If a trip is partially or fully booked on your credit card — be sure to confirm booking standards with your card provider first — you may be able to access travel insurance benefits that come with your credit card. Here’s how to use your credit card travel insurance:

  • Confirm your coverage. Before you file a claim, it’s helpful to brush up on your coverage. Your card should come with a benefits guide that outlines what type of travel coverage you have, including the maximum amount they’ll cover, exceptions to your coverage and how long you have to submit a claim (typically less than 60 days).
  • Show receipts and necessary documentation. You’ll likely need to provide receipts when you file your claim if you want to get your money back. You might also need to provide key documentation such as showing how a loss occurred, correspondence with travel providers proving they won’t reimburse you, doctors’ notes, police reports or any other applicable paperwork.
  • File the claim. Report any losses or situations to the benefits administrator within your policy’s claim time frame. Generally, you’ll download a claim form from the credit card provider’s website and submit evidence of the losses or situations for which you’re seeking reimbursement.
  • Wait for a decision. Your credit card provider will contact you with a decision regarding your claim and, if approved, explain how it plans to distribute your funds.

When is travel insurance worth it?

Traveling is expensive, so it’s understandable if you’re wondering — is trip insurance worth it? Where or not you should purchase travel insurance in addition to the benefits your credit card offers depends on how much coverage you already have and what your risk tolerance is. Some premium credit cards offer robust travel coverage — such as emergency evacuation coverage, lost baggage coverage or trip cancellation and interruption insurance — whereas no-annual-fee credit cards typically offer basic coverage like roadside assistance.

Note that travel insurance policies tend to get more expensive as you age. So the flat annual fees you’ll pay for premium travel credit cards such as The Platinum Card® from American Express ($695 annual fee) and the Chase Sapphire Reserve® ($550 annual fee) make their travel coverage more valuable the older you get.

Consider what type of travel insurance you may need and what events and belongings you need to have insured. If you want basic coverage for smaller issues, such as covering costs incurred if your flight is delayed, then your credit card policy may do the trick. But if you have ambitious travel plans that involve bigger risks — like booking a nonrefundable international trip — then you’ll likely want to purchase a travel insurance policy that will allow you to cancel a trip for any reason.

When is travel insurance not worth it?

Depending on where you’re traveling and the type of trip you’re taking, travel insurance might not be necessary. For example, if your trip is completely refundable, trip interruption and cancellation insurance is likely not necessary. You may also not need any type of travel insurance if you’re taking a cheap or short domestic trip.

Additionally, if you’re traveling within the U.S., you likely won’t need additional medical coverage beyond your existing health insurance plan (though it would be good to check your policy first). If you’re traveling outside of the U.S., however, additional medical coverage — whether purchased or provided through a credit card — can be helpful in an emergency situation.

Should you get a top credit card for travel insurance?

Many travel credit cards can provide you with enough travel insurance benefits to protect you in an emergency or if your plans change, so purchasing extra travel coverage likely won’t be necessary. Of course, this depends on the type of trip you’re taking, among other factors.

If you’re looking for a new credit card and want one that provides solid travel insurance coverage, here are some of the best cards for travel insurance to consider:

Card name Annual fee Travel insurance benefits
Chase Sapphire Preferred® Card $95
  • Trip cancellation and interruption insurance

  • Lost luggage reimbursement

  • Baggage delay insurance

  • Trip delay reimbursement

  • Travel and emergency assistance services

  • Auto rental collision damage waiver (primary)

  • Terms and conditions apply
Chase Sapphire Reserve® $550
  • Trip cancellation and interruption insurance

  • Lost luggage reimbursement

  • Baggage delay insurance

  • Trip delay reimbursement

  • Travel and emergency assistance services

  • Auto rental collision damage waiver (primary)

  • Terms and conditions apply
The Platinum Card® from American Express $695
  • Trip cancellation and interruption insurance

  • Trip delay insurance

  • Car rental loss and damage insurance

  • Terms and conditions apply
Capital One Venture X Rewards Credit Card $395
  • Trip cancellation and interruption insurance

  • Trip delay reimbursement

  • Travel accident insurance

  • Lost luggage reimbursement

  • Travel and emergency assistance services

  • Auto rental collision damage waiver

  • Terms and conditions apply*

Although travel insurance can be a great cardholder perk, it probably won’t be the main factor you’re considering when picking out a new credit card. While it’s nice for frequent travelers, you’ll want to look for a credit card that offers benefits you’ll use, such as a great rewards program, a sign-up bonus or intro APR offers. A card that rewards you for your regular spending may be more valuable in the long run than one that comes with a limited amount of travel insurance to cover the occasional trip.

While you can’t predict the exact cost of every future trip you plan, you probably have an idea of what kind of trips you take and what type of coverage they require. For example, if you love taking road trips in your trusty SUV and rarely rent a car or book a flight for a vacation, then you’re less likely to need car rental or baggage delay coverage. But having roadside assistance as a perk may give you much-needed peace of mind when you hit the open road. Look for a credit card that offers coverage in line with the way you travel most often.

It’s a terrible feeling thinking you have insurance coverage, only to find you’re going to need to pay more out of pocket than you realized when something does go wrong. Double check the fine print for the travel insurance coverage before relying on a credit card’s insurance perks. You’ll likely come across some potential exclusions.

Frequently asked questions (FAQs)

The bottom line

Credit card travel insurance benefits can offer travelers solutions to frustrating and costly travel problems. Because you don’t need to pay for this cardholder perk, it’s a great bit of extra protection to have in your back pocket. However, if you’re spending a lot on an upcoming trip and you’re worried about travel issues that may require expensive solutions, then purchasing a separate travel insurance policy may be worth it.

Already planning your next vacation?

Check out Bankrate’s travel toolkit for tips and tricks on how to maximize travel with a credit card.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.