Many people choose a credit card for the rewards points or the perks, like airport lounge access. But if you look closely, you may discover that your card includes some travel protection benefits, too.

The most common credit card travel insurance offerings are travel accident coverage, trip cancellation benefits, and lost luggage benefits.¹ These are all nice to have—but are they enough? For some trips, maybe. For most trips, probably not. Credit card travel insurance just doesn’t give you as much protection as a standalone travel insurance plan.

5 key things to know when comparing credit card travel insurance and travel insurance

1.     Not all credit card travel insurance plans are created equal.

Some cards offer only a few benefits, such as baggage protection and rental car protection. A few cards provide more generous travel insurance coverage that includes trip cancellation/interruption, trip delay, and more.

2.     Free credit card travel insurance is hard to find.

Most travel rewards credit cards carry an annual fee, so the “free” travel insurance benefits aren’t really free. For example, two of the credit cards known for offering the best travel protection benefits (Chase Sapphire Reserve and American Express Platinum) have annual fees of $550 and $695, respectively.^{2 3}

3.     Credit card travel insurance typically only applies to trip expenses charged to the card.

Make sure to put all your trip costs on the same card, if you want the travel protection offered.

4.     Credit card travel insurance may not cover losses due to pre-existing conditions.

Trip cancellation claims and medical evacuation claims may be denied if they’re related to an existing medical condition.⁴ Allianz Travel Insurance plans  can cover pre-existing conditions, as long as certain requirements are met.

5.     Always check the fine print.

Credit card travel protection benefits typically have more restrictions and exclusions than stand-alone travel insurance plans. Make sure you read the details so you’re not surprised by a rejected claim.

So… how do you know if credit card travel insurance is enough for your trip? Let’s look at a few examples.

Credit card travel insurance vs. travel insurance: Which is better for travel delays?

If you’re flying anytime soon, there’s a pretty good chance you’ll experience a delay. About 20% of U.S. flights are delayed, on average, and nearly 2% are canceled.⁵

Travel delay benefits can reimburse you for eligible expenses, such as food and accommodations, during a covered delay. This can be a huge help if the delay strands you overnight (or for multiple nights) at your destination.

Many credit card travel protection plans include trip delay benefits… but you’ll have to look closely at the details.

• What’s the minimum delay? Some cards define a delay as lasting 12 hours or more.
• What are the covered reasons? Some plans have a narrow definition of covered causes for the delay. A weather delay may be covered; a delay due to a strike may not be covered.
• What’s the maximum you can be reimbursed? The limit is typically $500 per traveler.⁶

Travel insurance plans tend to have more generous benefits. Allianz Travel Insurance’s trip delay benefits, for instance, can reimburse not only your eligible expenses but also your lost prepaid trip costs and additional costs to help you rejoin your cruise/tour or reach your destination. Maximum trip delay benefits can range from $150 to $1,600 per insured person, depending on the plan you choose. The minimum delay length may be 3 hours to 6 hours.

Best of all: if your plan includes SmartBenefits®, you can choose to receive a fixed inconvenience payment of $100 per insured person, per day, for a covered delay. You don’t need to provide any receipts—just proof of the delay.

The upshot: Many credit cards offer decent trip delay benefits, but a standalone policy will give you more.

Credit card travel insurance vs. travel insurance: Which is better for baggage protection?

When your suitcase arrives a day late, gets beaten up in transit, or never appears at all, that can ruin your whole trip.

Both credit card travel insurance and standalone travel insurance can be a good choice for protecting your baggage. When comparing them, you’ll want to look at:

• What’s covered and excluded: Typically, baggage delay benefits will cover the essentials, such as reimbursing you for buying a change of clothes and toiletries. Baggage loss, theft, and damage benefits can reimburse you for replacing your lost or damaged items, up to a certain limit (with or without receipts). Certain things won’t be covered, such as medical equipment, eyeglasses, and high-value items.
• Minimum delays: How long must your baggage be missing in order for baggage delay benefits to apply?
• Maximum limits: What’s the maximum dollar value your baggage protection will cover?

One big advantage of Allianz Travel Insurance baggage benefits: Your baggage can be covered throughout the trip, not only when it’s being handled by an airline or other travel carrier. For example, the Chase Sapphire Reserve credit card plans can reimburse up to $3,000 per passenger for lost or damaged luggage—but only if it’s lost or damaged by the carrier.⁷ Allianz Travel Insurance reimburses losses when luggage is lost, damaged, or stolen while you are on your trip, as long as you report the loss to the authorities and have taken reasonable steps to keep your property safe and recover it. Exclusions apply. 

The upshot: Both credit cards and standalone travel insurance can do a good job of protecting baggage. Just be sure to read the fine print.

Credit card travel insurance vs. travel insurance: Which is better for medical emergencies?

A medical emergency while traveling overseas can be an expensive and even life-threatening catastrophe. In most cases, you cannot count on credit card travel insurance to cover expenses related to medical emergencies.

Credit card travel insurance typically offers travel accident insurance, which does not reimburse your medical expenses.⁸ Instead, this benefit pays you if you suffer a specific injury — such as losing a hand, a foot or vision in one or both eyes — in an accident while you’re traveling. If the accident results in your death, your estate receives a payment.

Allianz Travel Insurance, on the other hand, can provide what you really need: emergency medical/dental and emergency transportation benefits. These benefits can cover:

• The cost of covered care for a medical emergency
• Medically necessary evacuation/transportation
• The cost to bring a friend or family member to your bedside, if you’ll be hospitalized for more than 48 hours
• The cost to send your dependents home, if they’re traveling with you and you’re hospitalized for more than 24 hours
• The cost of medical repatriation, which means transporting you home after an illness or injury once you’re well enough to travel.

A few credit cards include medical evacuation benefits, but you’ll need to read your card agreement carefully to understand what’s covered. Typically, credit card insurance will not cover repatriation or pre-existing conditions.⁹

The upshot: For international travel, you need a standalone travel insurance plan with emergency medical benefits. Credit card travel insurance just isn’t enough.

Credit card travel insurance vs. travel insurance: Trip cancellation and trip interruption protection

If you have to cancel your vacation at the last minute or cut it short, will your credit card reimburse your lost trip costs? It may, if your card offers trip cancellation/interruption benefits. Be sure to look at your card agreement to find the covered reasons for trip cancellation/interruption. These are the situations in which the card may reimburse you. For example, one credit card lists exactly three covered reasons:

• The traveler dies or suffers an injury, a disease or physical illness, and is advised by a licensed medical practitioner not to travel.
• The traveler’s family member dies, or suffers an injury, disease or physical illness that is either life threatening or requires care from the covered traveler, and is verified by a doctor.
• The common carrier experiences a financial default.^10

That’s it. Compare this to Allianz Travel Insurance, which includes up to 28 covered reasons for canceling your trip and up to 20 covered reasons for interrupting your trip, depending on the plan you choose. Here’s a quick guide to those covered reasons: Trip Cancellation Insurance: Covered Reasons Explained

The upshot: If you want to protect your trip investment, a standalone travel insurance plan is the way to go.

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