Credit Card Perks: Travel Insurance

Credit Card Travel Insurance
If you’re a frequent jet-setter you likely already have a credit card that pays you back in travel rewards, that’s fairly common knowledge in this day and age. What you might not know however is that many of those very same travel rewards cards also give you insurance coverage for lots of the not so great things that can happen when you’re on vacation. You know when you’re booking a trip and you have to click through the part about accepting or rejecting medical insurance, trip cancellation insurance, car rental insurance, etc. All those things can cost you a pretty penny each time but skipping them might leave you with in a bad situation. For that reason, it’s worth checking to see what coverage you currently have through your credit card and maybe even switching cards if you travel quite a bit. 
 
First, we’re going to look at a few things you might want coverage from, and then we’ll compare a couple travel cards and see what kind of coverage you can get. 

Emergency Medical or Travel Accident Insurance

These are the basics if you get sick or injured and have to seek medical assistance in another country you will be covered for the cost of those services. Accident insurance is an additional coverage that would pay out if there was a loss of life or dismemberment during the insured’s trip. 

Trip Cancellation Insurance 

Pretty self-explanatory. If you have to cancel your non-refundable vacation at the last minute, you will be reimbursed and not have to pay for a trip you didn’t take. 

Trip Interruption Insurance

Similar to trip cancellation but this would be if you are already on your vacation and have to come home early (or are delayed leaving) for some sort of emergency. Trip interruption coverage would pay for any costs associated with getting you home ASAP such as rescheduling flights, hotel cancellation, etc. 

Car Rental Insurance

Will cover you if you are renting a car and get in an accident or the car is damaged or stolen. 

Lost Baggage Insurance

If your luggage is lost, your insurer will cut you a cheque to cover it. 
 
We just recently booked a trip to Barcelona for November and the price we were quoted for medical, accident, cancellation, interruption and lost baggage insurance was $153 each. Now we are both healthy and fairly young so that price isn’t that high, but it still ends up being more than the annual fee of most of the travel credit cards. Of course, if you’re racking up debt on that same credit card you’re going to see the insurance advantage run out real fast. These companies aren’t crazy, more often than not they make their money back on your interest payments. Remember to always pay your balances in full, and you can reap the rewards. 
 
Here are a couple of card options that are available to give you an idea of what sort of coverage you can get. There are plenty more out there so take your time to do a little research and find the best fit for you. Just a note, the numbers provided below are a basic overview…there’s always going to be some fine print involved when it comes to insurance. 
 

 

BMO World Elite MasterCard

  • Annual Fee: $150 / Interest Rate: 19.99%
  • 2 points per dollar on all purchases
  • Travel insurance coverage:
    • Medical: $2,000,000
    • Accident: up to $500,000
    • Cancellation: $2,500/person or $5,000/trip
    • Interruption: $2,000/person
    • Car Rental: $65,000
    • Lost Baggage: $750/person or $2,000/trip

TD First Class Travel Visa Infinite

  • Annual Fee: $120 / Interest Rate: 19.99%
  • 3 points per dollar
  • Travel insurance coverage:
    • Medical: $1,000,000
    • Accident: up to $500,000
    • Cancellation: $1,500/person or $5,000/trip
    • Interruption: $5,000/person or $25,000/trip
    • Car Rental: $65,000
    • Lost Baggage: $1,000/person

Scotiabank Gold American Express Card

  • Annual Fee: $99 / Interest Rate: 19.99%
  • 4 points per dollar on gas, groceries, restaurants & entertainment, 1 point per dollar on anything else
  • Travel insurance coverage:
    • Medical: $1,000,000
    • Accident: up to $500,000
    • Cancellation: $2,500/person or $10,000/trip
    • Interruption: $2,500/person or $10,000/trip
    • Car Rental: $65,000
    • Lost Baggage: $1,000/trip
Credit Card Travel Insurance

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