As a financial expert, here are the credit card travel benefits I actually use

I’ve covered personal finance and travel for more than 10 years, and I’ll be the first to tell you that rewards credit cards are worth it. I’ve booked countless free flights and hotel stays thanks to the points and miles I’ve earned through credit card spending, but that’s only part of the appeal. 

The best travel credit cards also come with benefits that can make your journey through the airport a bit more comfortable — and they even offer some coverage for things like delayed baggage and trip cancellation. That said, even the best travel credit cards can’t replace a full-fledged travel insurance policy. 

Here are the credit card travel perks worth paying attention to, and the gaps that travel insurance still fills.

The credit card travel benefits I always use

The rewards

This one’s obvious. Earning points and miles unlocks nearly free travel, from award flights to hotel stays to rental cars and experiences booked through credit card travel portals. Even if you don’t want to spend a lot on annual fees, you can find strong rewards cards that earn valuable points on everyday spending. It’s only worth using rewards cards if you can comfortably afford to pay off your balance each month, but if you can, it’s a no-brainer. 

The airport lounge access

I love stopping by an airport lounge before my flight to grab a quick meal and a nice drink. One of my cards has an incredibly high annual fee, but I’m always grateful for access to an affiliated lounge — it just makes your travel experience a bit more pleasant to have a better place to sit than gateside before your flight.

The loyalty perks

Many co-branded credit cards approximate elite status with benefits like a free checked bag. Some even grant you a specific level of airline or hotel elite status just for holding the card. At hotels, this can unlock perks like a higher points-earning rate on stays and free room upgrades. With airlines, this can also translate to an increased earning rate and higher upgrade priority. I don’t fly or stay enough with any airline or hotel to qualify for elite status, so credit cards provide a helpful shortcut.

The rental car insurance

Whenever I rent a car, I confidently decline the rental company's collision damage waiver because one of my credit cards comes with primary rental car coverage for damage and theft. Note that card coverage doesn't include liability insurance, and there are usually some exclusions to be aware of, like certain countries and vehicle types. Still, it can be a valuable benefit that can spare you a bit of money, since coverage usually isn't cheap when you purchase it through the rental company.

Built-in trip protections

I always pay for flights with a credit card that offers trip delay coverage, trip cancellation or interruption insurance. There are reimbursement caps to be aware of, and your credit card’s terms and conditions will lay out all relevant exclusions.

A premium card's trip protections can be fairly robust, and for an inexpensive domestic trip, they may be all you need. The gaps tend to show up on international travel or expensive trips (such as luxury). 

The travel perks you won’t find on credit cards

Required travel insurance

In some cases, travel insurance isn’t just a nice-to-have; it’s a necessity. For instance, if you’re visiting Europe on a Schengen visa, you need proof of at least 30,000 euros in emergency medical coverage. Credit cards don’t always provide this, so you’ll likely need an insurance policy. This doesn’t apply to most U.S.-based travelers visiting Europe, but it’s relevant for travelers of many other nationalities.

Comprehensive coverage 

If you’re looking for more comprehensive coverage, it’s usually better to get travel insurance through a standalone company. Dedicated policies tend to have more exhaustive coverage as the companies that create them are focused on providing the best coverage for travelers, versus throwing in travel protection as an additional perk. 

Specialty coverage (sports, personal liability, legal fees, etc.) 

Similarly, your credit card’s travel insurance may not include specific kinds of coverage, such as protection for sports (search and rescue is a smart idea if you’re planning to ski in Austria, for example). If you want to be covered for something beyond medical emergencies or lost luggage, it might be a good idea to get a separate travel insurance policy – especially if you’re traveling overseas. 

Protecting your trip with credit cards and travel insurance:

You can’t stack coverage

You can have both a travel insurance policy and eligible travel coverage from the credit card you paid with, but don’t expect to get double payouts for any claims you submit. If you submit a claim to either your credit card issuer or travel insurance company, you’ll be required to disclose any other coverage you have. Credit card coverage is often secondary, anyway, meaning it typically applies after any other policies like your medical insurance or travel insurance. That may not always be the case, but it’s something to look out for. 

The main point: Having both credit card coverage and a separate travel insurance policy isn’t about doubling up. It’s about making sure you’re covered across the board, because each type of coverage has its own limitations and gaps. Many travelers get both, but you can’t double-dip. 

What this means for your next trip

In short, it can be a strategic move to pay with a travel credit card when you book trip-related expenses like flights, hotels, and other transportation. Evaluate the cards in your wallet and choose the one with the most generous coverage and highest reimbursement caps.

Always consider taking out a dedicated travel insurance policy through a reputable provider. Regardless of how you get your coverage, it’s always a good idea to be covered.