Last updated on February 4th, 2020
Many of our clients frequently tell us that they have coverage from their credit cards, when we suggest they buy travel insurance or Trip Cancellation/Trip interruption. While this might be true, most do not really know what their coverage includes. Oftentimes credit cards have lower sum insured amounts, few covered risks and more restrictions. It is extremely important to read the fine print in the policy wording.
Travel Underwriters’ travel insurance, particularly their Trip Cancellation/Trip Interruption plans are more comprehensive, here are some of the reasons why:
Pre-Existing Condition Stability
Travel Underwriters’ requires stability period of 60 days prior to the date the trip is booked or the insurance purchased, while credit cards ask for stability of at least 3 to 6 months and some do not offer coverage for pre-existing conditions at all.
Covered Risks
Travel Underwriters’ travel insurance has 23* covered risk benefits associated with Trip Cancellation/Trip Interruption. None of the credit cards offer the combination of the risks below:
A scheduled change – A schedule change of the airline carrier that is providing transportation for a portion of the trip, causing you to miss a connection.
Non-issuance of travel or student visa (not including an immigration or employment visa) – This is important, particularly for backpackers, cruisers and others travelling to countries requiring visas.
Higher Sum Insured Amounts
Travel Underwriters offers higher sum insured amounts: up to $25,000 for Trip Interruption and up to $20,000 for Trip Cancellation. Most of the cards only cover between $1,000 and $5,000 at the most. That’s a substantial difference in coverage!
Purchase Restrictions
Many of the credit cards also have purchase restrictions. The trips had to be entirely or in part paid for by the credit card or booked with travel points. If the insurance was used, points would not be compensated.
When it comes to insurance, free is not always the best way to go. Make sure you are familiar with the coverage and understand the limitations before you embark on your trip! It could save you a lot of money!
For more information you can always contact us at 1-877-211-4301 or by email at [email protected]
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