How Credit Card Travel Insurance Works
Have you ever had unforeseen circumstances while traveling? A health problem, lost luggage or even a traffic jam that disrupts the day’s schedule can be enough to frustrate any traveler. For some situations, help may be close at hand: travel insurance on your credit card.
Check today’s post for some benefits that your card can offer to guarantee you a good vacation.
How it works?
Travel insurance is available to the customer automatically and free of charge, when purchasing an air, road or sea ticket with a credit card.
The characteristics of this service offered vary according to each flag and its different categories. The higher the level, the greater the coverage. The fundamental in all cases is that the payment of the ticket is made in full using the card.
Generally, the service consists of refunding the amounts paid by the customer in unexpected situations. For this reason, it is important to keep payment receipts in order to be able to request money from the bank.
What protections does card travel insurance offer?
Theoretically, a lot can hinder a trip. Therefore, all cases are previously specified in the insurance contract and it is very important that the customer check the list before embarking. Thus, you can know which services are entitled and in which situations you can use them, and you can also analyze the need to hire other, more specific insurances.
It is worth mentioning that, in each type of contract, other characteristics also vary, such as:
- insurance term;
- coverage of dependents;
- coverage value.
Listed below are some of the contingencies that can be reimbursed for insurance offered by your credit card. Check-out:
Loss or loss of luggage
The traveler will hardly feel compensated for the loss of his luggage. The travel insurance on the card may make a partial refund, in addition to the indemnity that the airline will have to pay. There are also rules that limit the reimbursement of some objects, such as jewelry and electronics, which reduces the performance of insurance.
In cases of loss or delay, the card determines the time limit for coverage, which can vary between four and twelve hours of waiting, depending on the category to which the customer belongs.
In case of illness, it is also possible to activate the travel insurance on the card to cancel the trip without additional costs. The insurance may be valid if the holder becomes ill and cannot travel, if the traveling companion is unable to board, or if health problems occur with any direct relative of the service contractor.
Travel delay or interruption
The causes of this type of problem can be varied. Generally, cards cover delays due to weather conditions, mechanical failures, loss of connection, strikes, injuries and other special cases.
In countries like the United States, which do not have public medical services, a trip to the hospital can be very expensive. Some categories of cards offer coverage for international medical emergencies, both for the cardholder, as well as for spouses and children up to 24 years old, as long as their tickets were also purchased with the card. It is important to remember, however, that there are defined maximum repayment limits.
Card travel insurance generally covers theft and damage to the rental car. It is also possible to waive the insurance offered by the rental company – before choosing to waive them, check what are the additional ones they offer, as they may be worth it. For this to be included in the list of benefits, the customer must make the reservation and pay the full rental car using the card. Depending on the flag, the insurance will protect the owner and the driver registered with the company.