7 times your credit card travel insurance just won't cut it: from a financial expert

Having a travel rewards credit card can be a game changer. You earn valuable points and miles that can get you flights and hotel stays for free, and in many cases you also get extra perks like airport lounge access. Still, it doesn’t mean relying solely on your credit card for travel insurance coverage is the best option for you and your trip. 

What travel insurance do credit cards offer?

Many of the best credit cards also offer travel insurance, including trip cancellation and interruption coverage, baggage delay coverage, and rental car insurance, depending on the agreement.

These benefits can be great, providing peace of mind and tangible reimbursement when something goes wrong, but… it isn’t always enough. 

Why you should consider extra coverage

I’ve traveled to over 30 countries, often on points and miles, and almost always using a travel card to cover out-of-pocket expenses. But credit cards don’t cover everything. They usually have much lower coverage limits than standalone travel insurance, and their medical coverage can be limited. 

Here are seven times I’d advise looking beyond your card’s travel insurance and purchasing additional coverage.

1. Your maximums are low

Credit cards with trip cancellation or trip interruption insurance can sometimes get you reimbursement if you need to change your plans due to covered reasons like illness or severe weather. But in many cases, the coverage cap is quite low. 

For example, A card might offer trip cancellation and interruption insurance, but max out at $1,500 per covered traveler and $6,000 per trip. If your trip expenses exceed that limit, it’s a good idea to use a separate travel insurance policy to bridge the gap.

2. You want flexibility in how you pay

To qualify for the travel insurance benefits offered by your credit card, you typically need to pay for all travel expenses with that same card. If you want more flexibility in how you pay for flights, hotels, and more, buying travel insurance could make more sense.

This could come into play if you want to spread expenses across several cards or if you’re splitting trip costs among different people in your group. Or, maybe you just signed up for a new credit card and need to meet a minimum spending requirement for its welcome bonus, but that credit card doesn’t happen to offer any travel insurance perks.

To have more flexibility, you should opt for a dedicated travel insurance policy over one attached to your credit card.

3. You need medical treatment abroad

While some premium travel cards will cover emergency medical evacuation during a trip, actual emergency medical treatment may not always be included in this. If a medical emergency happens during your travels, your credit card insurance may not cover you, and your own health insurance probably won’t, either. (Of course, look at the terms and conditions of each, because policies do vary).

Depending on where you’re traveling, medical treatment may be more affordable than it is at home, but not always. Once while traveling in Osaka, I had to get an X-Ray for a foot injury and could not believe that I walked away spending less than $100 out of pocket. But that’s not always the case, and you don’t want the stress of a large surprise medical bill if you can avoid it. 

4. You need a Schengen visa or other entry requirement

If you need a Schengen visa for travel in Europe, compliant travel medical insurance is required, and you’ll need to show proof of your coverage when you submit your visa application. 

As discussed above, credit cards may not always cover emergency medical care abroad, and if they do, the policy still may not meet the requirements of your Schengen visa, so you’ll need a separate policy to meet your entry requirements. Companies like Insurte specialize in this kind of insurance. They know the Schengen visa rules, so you can ensure you’re getting the right kind of policy for what you need.

Travel insurance is a good idea anyway, so you’re not worried about potentially racking up large bills if you need emergency medical treatment during your travels.

5. You’ll be traveling for an extended period

For longer trips, your credit card’s travel protections may not even apply. Many cards limit trip cancellation insurance and other coverage to trips of a certain length, such as 60 days (as an example).

The longer you travel, the more likely you are to encounter snags along the way. While those are hopefully small snags, like delayed baggage rather than falling ill, it could still be worth getting a travel insurance policy so you know you’ll be covered. For instance, with Insurte, you can get an annual travel insurance policy. Just keep an eye on trip maximums.

6. You’re traveling somewhere remote 

If your trip will take you off the beaten path, literally or figuratively, you’ll want peace of mind that you’ll be covered in the case of a surprise injury or illness. Travel insurance policies offer medical evacuation as a benefit, so you won’t be on the hook for covered expenses if you need to be transported to a hospital for treatment. 

Only some premium credit cards offer medical evacuation, but even then, their limits are sometimes lower than what you’ll get through a separate travel insurance policy. Make sure that you look at the specific coverage. 

Do keep in mind that there are often territorial limitations to medical evacuation, so always look at the terms and conditions. 

7. You want coverage for other types of accidents

This is one area where credit card perks can’t stand in for a travel insurance policy. When you purchase travel insurance, some policies offer personal liability abroad coverage that kicks in if you accidentally injure another person or damage any property while on your trip.

Instances where this could come into play include accidents while skiing, accidentally flooding a bathroom at your vacation rental, or a stray golf ball causes injury. Always check the exclusions, though. Sometimes unfortunate mistakes happen, even to those of us who aren’t particularly clumsy, and they can be expensive. You may not have any financial coverage if you rely solely on your credit card, so choosing a travel insurance policy with personal liability coverage can make the situation slightly less stressful. Or, at the very least, give you peace of mind. 

A separate policy doesn’t have to cost much, but it can make a big difference

Even with a great travel rewards card, you may not be covered if something goes awry or you need medical attention while traveling. Depending on the length of your trip, your destination, and the specific types and levels of coverage you need, a travel insurance policy can cost less than a meal out, so it’s really a no-brainer.

Make sure to read your credit card benefits guide carefully before assuming you have coverage, and consider adding a separate policy in the above situations so you have one less thing to worry about.