For many Canadians, pulling out the credit card to book a trip feels like an extra safety net. After all, most premium cards come with some form of travel insurance – a built-in perk that can save you from buying a separate policy. But here’s the catch: what’s included isn’t always as comprehensive as it seems.
The truth is, credit card travel insurance can be helpful in certain situations, but it’s rarely a one-size-fits-all solution. By understanding where the gaps are, you can avoid expensive surprises when you need coverage most.
Limits on Medical and Trip Coverage
While some credit cards offer emergency medical coverage, the amount can be limited – sometimes capped at $1 million, but often much less. In serious situations, especially in the United States or abroad, that coverage can be exhausted quickly. Many plans also have trip duration limits, typically covering trips of 15 to 21 days, with further reductions based on age or pre-existing conditions.
It’s a common misconception that your credit card will reimburse you for any cancelled trip. In reality, trip cancellation and interruption benefits usually apply only under very specific circumstances such as illness, injury, or natural disasters. Maximum payouts may be significantly lower than your actual trip costs, meaning prepaid tours or accommodations might not be fully covered.
Who and What Is Covered
Credit card travel insurance often only covers the cardholder, not automatically including spouses, children, or other travelling companions unless their portion of the trip was charged to the same card. Additionally, many policies exclude coverage for “high-risk” activities such as skiing, scuba diving, or zip-lining. Injuries from these activities might leave you fully responsible for medical costs.
Claims Process and How to Protect Yourself
Claims involving credit card insurance can be more complex since they often involve multiple parties – the credit card company, their insurance provider, and sometimes the merchant. This can slow down resolutions, especially while you’re traveling.
To protect yourself, carefully review your credit card’s insurance certificate. Check coverage limits for medical care, trip cancellation, and lost baggage; note age and trip length restrictions; understand exclusions for certain activities or pre-existing conditions; and confirm who is covered in your travel group. If your needs exceed what’s provided, consider purchasing a standalone travel insurance policy for comprehensive, tailored protection.
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Credit card travel insurance can be a valuable perk but shouldn’t be your only safety net. A little extra planning now can save you from costly surprises and stress while you’re away. To make sure you have the right coverage tailored to your trip and needs, contact us today for expert advice and travel insurance plans designed to give you full peace of mind on your next adventure.
