If you look at the fine print in your credit card agreement, you may find a few useful perks: things like extended warranties on purchases, mobile phone protection and (most importantly) travel insurance.

Credit card travel insurance has one big advantage: It’s usually free, or included in the card’s annual fee. However, the travel insurance offered by credit card companies typically has more restrictions and fewer benefits than a standalone travel insurance plan.

So will your credit card give you enough protection for your next trip, or do you need to purchase travel insurance too? Let's take a closer look. If you don’t have time to read the full comparison, here’s the short version: Credit cards’ travel benefits can be useful for the small things (such as lost bags and travel delays), but only travel insurance provides reliable protection in real emergencies.

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Credit Card Travel Insurance Benefits Compared

1. Travel Accident Insurance

The most common credit card travel insurance benefit is travel accident insurance.¹ (Allianz Global Assistance offers travel accident benefits with AllTrips annual plans.) This benefit pays you a certain amount of money if you suffer a specific injury — losing a hand, a foot or vision in one or both eyes — in an accident while you’re traveling. If you have an accident during your trip that results in your death, your estate receives a payment.

We’ll be honest: Travel accident benefits are not the most important benefit that travel insurance can provide. First, it’s unlikely you’ll suffer an accident or death that meets the strict criteria. Second, if you do experience a serious accident while traveling, your first priority — and ours — is getting high-quality medical care. Travel accident insurance doesn’t pay medical expenses. For that, you’ll need…

2. Emergency Medical Benefits

Emergency medical benefits can reimburse you for the reasonable and customary costs of emergency medical or dental care (up to the limits stated in your plan) if, while traveling, you experience a sudden covered illness, injury, or medical condition. This benefit can also guarantee or advance payments, where accepted, if you’ll be hospitalized for more than 24 hours.

If you’re traveling overseas, having emergency medical benefits is absolutely essential. That’s because many medical facilities and doctors in other countries require cash payment up front and do not accept U.S. insurance plans. Medicare does not provide coverage outside of the United States.²

Credit card travel insurance does not typically include emergency medical benefits. That’s why you’ll need to protect your trips abroad with a trusted plan from Allianz Global Assistance, such as OneTrip Basic (up to $10,000 in emergency medical) or OneTrip Prime (up to $50,000 in emergency medical).

3. Emergency Medical Evacuation

An emergency evacuation — especially in a foreign country — can be one of the most expensive purchases of your life. Depending on where you are and what your medical condition requires, the cost of emergency medical transportation can range from around $15,000-$20,000 to more than $100,000.³

A few credit cards include medical evacuation benefits, but you’ll need to read your card agreement carefully to understand what’s covered.⁴ Key points to look for:

• What’s the maximum benefit? $10,000 won’t go very far. Allianz Global Assistance’s plans range from $50,000 up to $1 million in emergency medical transportation benefits.
• Will your credit card cover losses caused by pre-existing conditions? Allianz Global Assistance’s plans can cover pre-existing conditions, as long as certain requirements are met.
• Is medical repatriation covered? Your Allianz Global Assistance plan can reimburse the costs of sending you home after a covered medical emergency with a medical escort or special accommodations, if necessary.

4. Trip Cancellation/Interruption Benefits

After benefits for medical emergencies, trip cancellation and trip interruption are the most important benefits for many travelers. If you must cancel or cut short your trip for a covered reason, these benefits can reimburse the nonrefundable, prepaid costs for the part of the trip you didn’t get to use. Allianz Global Assistance’s trip cancellation benefits reimburse up to 100 percent of the eligible, nonrefundable costs of a cancelled trip, up to the maximum limit stated in each plan, and include a wide range of covered reasons for trip cancellation/interruption.

Several credit cards offer trip cancellation benefits, but savvy travelers should pay attention to the limits and exclusions. The max limit is typically $5,000-$10,000 per person; cancellations due to a pre-existing condition often aren’t covered; and the list of covered reasons can be short.⁵

5. Travel Delay Benefits

Many credit cards offer travel delay benefits, which can reimburse you for essential purchases (like meals and hotel stays) if your trip is delayed for a covered reason. The max limit is typically $500 per traveler — enough for a brief stopover in a major city, but not an extended delay.⁶

Allianz Global Assistance’s plans include travel delay benefits with higher limits, up to $1,600 per insured person with OneTrip Premier. Even better: SmartBenefits^SM, included with the OneTrip Premier plan, lets you opt to receive a fixed inconvenience payment of $100 per insured person, per day, for a covered travel delay or baggage delay (up to the maximum no-receipts limit).

6. Baggage Benefits

Baggage delay/loss/theft benefits are offered by several credit cards. In short, these benefits reimburse you for your lost items and/or the purchase of necessary things when your bags go astray. Credit cards’ baggage delay limits are typically low ($100 per day is common) and there may be restrictions on the items you can buy.⁷ Coverage may be secondary, which means you’ll need to file a claim with your travel supplier before receiving any reimbursement from the credit card company. 

7. Worldwide Assistance

One key benefit of all Allianz Global Assistance plans is  24-Hour Hotline Assistance. Our team of experts is available around the clock to help travelers with travel dilemmas of all stripes: medical emergencies, lost passports, stolen wallets, crises overseas, etc.

Few credit cards offer this kind of comprehensive global assistance to travelers. It’s more common for credit cards to offer concierge benefits, which help you purchase tickets, make restaurant reservations, etc.

Summary: The Pros and Cons of Credit Card Travel Insurance 

Should you purchase travel insurance for your next trip, or can your credit card give you enough protection? That depends on your travel plans. For a short domestic trip, your credit card may cover common mishaps like lost luggage and trip delays. But for long or international trips, you need robust third-party travel insurance. That’s because the biggest threat to your travel budget isn't a misplaced suitcase; it's the high cost of trip cancellations and medical emergencies.

Keep in mind that credit card plans and terms change often, so check your benefits with your card issuer before you travel. Consider the annual fee, too. The best credit cards for travel insurance are typically the top-tier cards, some of which charge $450-$550 per year in annual fees.⁸ That’s more than the cost of an entire year of protection with the AllTrips Prime plan.

Wherever your next trip may take you, don't skimp on trip protection. Safe travels!

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