The trend of young professionals and others taking international trips is increasing. Nowadays ordinary people are also taking foreign trips. People are traveling abroad, but they start traveling without any insurance. Most travelers believe that their credit card insurance is sufficient to meet their insurance needs abroad. Travelers do not know much about the exceptions of credit card travel insurance. They rely heavily on their credit card travel insurance and expect the same insurance benefits from this insurance as travel insurance. So through this article we are going to give you information about the effectiveness of credit card travel insurance and its exceptions.
What is covered under Credit Card Travel Insurance??
Credit card travel insurance has many benefits. It mainly covers –
Travel Delay – Flight delays are a common occurrence. If your trip is delayed due to flight or any other reason, it covers food, accommodation and transportation charges.
Deposit on cancellation of journey – Sometimes due to unforeseen events or medical emergencies, we have to cancel our travel plans in compulsion. So, if you cancel your trip, it covers non-cancellation fee and non-refundable fee. Meaning that the amount deposited at the time of booking of the journey which is not refunded even after cancellation of the journey is covered.
Medical emergencies abroad – If you are abroad and you break your hand or you have any kind of infection, then medical expenses incurred abroad will be covered. This will include your medical bills and hospitalization fees.
Equal loss, theft or delay – There is a possibility of loss of baggage in international trips. In such a situation, credit card travel insurance provides cover to compensate for loss of baggage.
Travel Accident Insurance – In this type of insurance, if you have an accident while traveling, then you are compensated for it. If the cardholder dies due to accident or injury, the family member is compensated.
Legal Coverage – If you are held legally responsible for damage to the property of a third party, then travel insurance provides you cover for it.
Keep these things in the mind of credit card travel insurance
You will not be automatically covered – To get insurance coverage on a credit card, you need to know the terms and conditions under which the coverage is offered. You are eligible for insurance only when you pay a large portion of your travel expenses with your credit card.
Inform the bank about your visit – Banks often consider suspicious transactions made through credit cards abroad. If you are traveling abroad, it is advisable to inform your bank about your trip to ensure safety.
This insurance only covers the cardholder –
Travel insurance offered by various credit card issuers mainly covers the cardholder. If you are on a family trip, you will need additional insurance coverage for your family members. In this case you can opt for travel insurance for your family members.
Limited coverage for current diseases –
If you have a disease or you already have some problems, this insurance does not cover all the problems arising due to earlier illness.
Adventure sports are excluded from coverage –
Most insurers do not provide any coverage for accidents or injuries caused by adventure sports and activities.
Limited Coverage – Credit card travel insurance is mainly for short international trips. If you are thinking of taking advantage of this type of insurance, then try not to travel more than a month. Apart from this, additional coverage during the journey is also offered for a limited period only.
How to choose a credit card offering travel insurance?
To choose the best credit card offering travel insurance, compare the credit cards of different banks and institutions on different parameters and then decide. You should evaluate the credit card benefits, features, what is covered and what are the exceptions. If your credit card does not have coverage for a contingency situation, then you should choose another card. You can also call the customer helpline and get information about its benefits etc. and choose a better card for yourself.
