Great – my credit card has travel insurance coverage! But am I really covered?

“I don’t need travel insurance: my credit card will cover me.” Travellers may not even think twice before uttering these words. But before they embark on their journey, they may want to take a closer look into what exactly their credit card covers, as it might not be as comprehensive as they think.

Like frequent traveller points, “free” groceries and gas, and low or no interest rates, travel protection is just that – a perk that credit card companies use to support their primary business offering: credit cards. Because of this, it’s important for travellers to know and understand just what they’re getting when they rely on their credit card’s travel insurance benefits.

A good exercise for travellers is to look at the travel coverage credit card providers in Canada offer. As they do, they should consider what the following might mean if they get sick or hurt while travelling, their flight is delayed on route to their destination or they need to catch up to their cruise in transit, for example.

• Are there coverage limits for overall protection and individual benefits?
• Who is covered under the policy, is it only the primary card holder?
• Is the coverage only valid up to a certain age limit?
• Does it cover an unexpected injury or illness while travelling?
• Does it include benefits if I have to cancel my trip before I leave or if am interrupted during my trip?
• Does the coverage only apply if the trip was purchased with the credit card?
• Does it only cover certain trip durations?

There’s a lot worth knowing about travel insurance, so whether it is travel insurance coverage through a credit card or employer benefits plan, travellers should do their homework before packing their bags and heading out to ensure they have the adequate coverage they need. Just like any other type of insurance, it is always beneficial to speak with a professional advisor as they can inform travellers on the coverage options available and recommend a plan that best suits their needs.

Travel insurance does not cover everything. For complete terms, conditions, limitations and exclusions, please refer to the policy. Travel insurance is underwritten by CUMIS General Insurance Company, a member of the Co-operators group of companies and administered by Allianz Global Assistance, which is a registered business name of AZGA Service Canada Inc and AZGA Insurance Agency Canada Ltd.

This story was originally published by Canadian Insurance Top Broker.