Travel Protection and Your Credit Cards
Jul 17, 2018 | Aon
Cash back, airline miles, gift cards and more – many of today’s credit cards offer consumers valuable perks for every dollar spent. What they may not realize is that those cards, when they pay for travel expenses, can also provide certain travel insurance benefits. Exactly what those benefits are, when they apply, and how to leverage them varies widely card to card. It can be the travel insurance you didn’t know you had.
“It’s smart for travelers to consider all of their options when it comes to protecting their trip,” said Beth Godlin, president of the Aon Affinity Travel Practice. “They may find that their credit card offers protection for their round trip airfare, but not for any emergency medical protection for the rest of the trip, so they would need to purchase a travel insurance policy for that. There’s not always a one-size-fits-all solution.”
So before booking your next trip, take a moment to consider what protection may already be in your wallet as well as your risks, your needs and your resources so you can protect yourself and your plans appropriately.
Credit cards with travel perks:
- Before taking advantage of any travel insurance benefit, be sure to understand all of the terms and conditions. Read the fine print, or better yet, call your credit card provider and ask specific questions.
- Pay for your travel bookings with the credit card that offers the optimum benefits.
- Save a copy of the card benefit guide and statement of purchase with your other travel paperwork.
- Call your credit card provider before making a claim to confirm how the claim process works, so you have all the details prepared in advance. It will help expedite the process.
Broad travel insurance and protection policies:
- Traditional travel insurance plans are designed to cover the value of a traveler's entire trip, regardless of how they paid for their adventure. So, depending upon the type of insurance package selected, travelers can have protection that stretches from the moment they depart for their trip to the moment they return.
- This also means that travelers only need to connect with one resource should things go wrong.
- Relying on credit card travel insurance benefits may mean that travelers miss out on important benefits that pertain directly to the type of travel they are taking. For example:
- Cancel for Any Reason (CFAR) coverage that allows travelers to change their plans any time for any reason and be eligible to receive some or all of their money back in cash or credit.
- Pre-existing condition waivers for you or a travel companion who suffers from a chronic medical condition.
- Emergency medical evacuation benefits, which can cost upwards of $100,000 to transport travelers from remote destinations to get to the medical services they need.
When travelers consider all of their travel needs and concerns, they’re better able to match up with the best protection resources, whether it be with the travel insurance benefits available on their credit card to more traditional travel insurance policies or a combination of both.
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