Wednesday, June 15, 2022

Which Credit Card Gives Free Travel Insurance

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The Best Credit Cards With Car Rental Insurance Can Save You Money

Canadian Travel Credit Cards That Gives You A Priority Pass Card

Using one of the credit cards reviewed above can save you money by exempting you from having to pay the high insurance rates charged by the car rental company. The rental car company rates for car insurance can add tens if not hundreds of dollars to the cost of your auto rental.

All of the cards above offer primary rental insurance. Primary rental car coverage is coverage that takes effect before any other insurance coverage.

So, if you do happen to get into an accident or otherwise need to file a claim, you wont have to file that claim with your own insurance company. Instead, the credit card company will take care of the claim. This can help keep your own personal auto insurance rates lower.

While many credit cards offer some sort of car rental insurance, you should understand the differences in coverage types and limits. If your credit card only offers secondary car rental coverage, that means that it only comes into play after you use your personal auto insurance and any other coverage that may be in place. If you have the option, its best to pay for your car rental with a card that offers primary insurance and a high coverage amount.

Bank Of America Premium Rewards Visa Credit Card: Great For Preferred Rewards Members

Heres why: The Bank of America® Premium Rewards® Visa® credit card is a relatively affordable travel credit card. It has a $95 annual fee and offers two points for every $1 you spend on travel and dining. If youre a Preferred Rewards member , you could earn 25% to 75% more points on every purchase, meaning you could earn up to 3.5 points for every $1 you spend on travel and dining. The card also comes with trip cancellation insurance. Unfortunately, Bank of America limits the information available about this policy until after you apply for the card. But heres what we know.

Coverage limits: Youll be eligible for up to $2,500 for fares if your trip is canceled or cut short. But its unclear if Bank of America places any limits on coverage if youre traveling with other people, or whether youre covered if you need to cancel a trip more than once in a year.

Whats covered: The trip cancellation insurance may reimburse you for unused, prepaid travel expenses that are nonrefundable such as airfare, hotel reservations and guided tours if you cancel for a covered reason, like sickness. But Bank of America doesnt specify in its trip cancellation policy what other expenses it will cover.

Chase Sapphire Reserve: Great For Frequent Travelers

Heres why: The Chase Sapphire Reserve® is one of our favorite credit cards for frequent travelers. Though it comes with a $550 annual fee, you get a travel credit of up to $300 in statement credits as reimbursement for travel purchases made with your card each anniversary year. And after you earn the travel credit, the Chase Sapphire Reserve® offers plenty of travel rewards, including

  • 10 points per $1 on hotel and car rental purchases through Chase Ultimate Rewards®
  • 5 points per $1 on flights purchased through Ultimate Rewards
  • 3 points for every $1 spent on other eligible travel purchases

But one of the cards most helpful perks is often overlooked: trip cancellation insurance.

Coverage limits: Youll be eligible for reimbursements of up to $10,000 per trip for yourself $20,000 per occurrence if youre traveling with family and $40,000 per year if you need to cancel more than once during a rolling 12-month period. If you paid for the trip using Chase Ultimate Rewards® points, youll be reimbursed an amount equal to the monetary value of the points, as it appears on your trip itinerary or redemption confirmation.

Whats covered: This cards trip cancellation insurance covers both you and any immediate family members as long as all or part of the trip is purchased with your card.

Learn more about this card in our review of the Chase Sapphire Reserve®.

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You Get What You Pay For

I know, I know, we all hate paying an annual fee for a credit card. But sometimes its worth it. Although the majority of the recommended cards in this article do have a relatively high annual fee, the comprehensive travel insurance packages they offer easily offset those fees.

Just remember that having travel insurance is a must as soon as you travel out of your home province or the country. It doesnt matter if youre crossing the border just for a few hours to shop or youre headed overseas for a vacationits better to be safe than sorry. Which credit card you choose is ultimately up to you, but remember that there are enough options out there to make sure the protections you get line up with what you need.

*This post was not sponsored. The views and opinions expressed in this review are purely my own.

Chase Sapphire Reserve: Best Travel Insurance Coverage Amounts

Top 5 Credit Cards for Travelers

Chase Sapphire Reserve just slightly edges its sister card, the Chase Sapphire Preferred Card, for the title of best credit card when it comes to travel insurance.

The Reserve offers lost baggage reimbursement up to $3,000 per passenger even when your luggage is damaged, while the Preferred only offers baggage delay reimbursement once your baggage is lost for six hours and it will only reimburse you for essential purchases up to $100 a day.

The Preferred only offers travel and emergency assistance where the administrator will refer you to services that you yourself will have to pay for, while the Reserve offers emergency evacuation and transportation if you or a member of your immediate family becomes sick or injured up to $100,000. Everything else is identical between the two cards.

Other great coverage features of the Chase Sapphire Reserve include:

  • Trip cancellation/interruption up to $10,000 per person and $20,000 per trip
  • Trip delay reimbursement for expenses when your trip is delayed more than six hours up to $500 per ticket
  • Up to $75,000 for collision or damage on rental cars
  • Emergency medical and dental up to $2,500 if youre more than 100 miles from home if you or a family member gets sick or injured
  • Accidental death and dismemberment up to $1,000,000
  • Roadside assistance up to $50 per incident four times a year

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Cibc Aventura Visa Infinite Card

  • $139 annual fee First year free
  • 20,000 Aventura points when you make your first purchase
  • 15,000 Aventura points when you spend $1,000 in your first year
  • Earn 2 points per $1 spent on CIBC travel
  • Earn 1.5 points per $1 spent on gas, grocery, and drug store purchases
  • Priority Pass Membership and 4 complimentary visits per year

Of the best credit cards with lounge access, the CIBC Aventura Visa Infinite is the only card to give you mobile device insurance and a rebate on your NEXUS membership. Those are some incredibly unique benefits that will appeal to travellers. Your card gives you 4 annual airport lounge passes, but it also comes with a generous sign up bonus of 20,000 CIBC Rewards points and comprehensive travel insurance. You can read my CIBC Aventura Visa Infinite review to find out how CIBC travel rewards work.

How To Make A Credit Card Travel Insurance Claim

Image source: Shutterstock

To be eligible for your credit card travel insurance, you usually need to charge the entire price of your common carrier expenses to your credit card. Some cards only require you to charge 75% of the price, but its best just to charge the entire amount to ensure there are no complications later. If by chance youre going on a road trip with your own vehicle, filling up a tank of gas as soon as you enter a new province or state would make your travel insurance policy valid from that point.

When it comes to making a claim, generally speaking, you want to contact your insurance provider right away to start a claim file. In the case of emergency medical insurance, it may not be possible to do things right away, so inform your insurance provider as soon as you reasonably can.

If your insurance company accepts your medical insurance claim, then you may not need to pay any expenses out of pocket. However, if youre claiming flight delay or lost luggage insurance, youll have to hang onto any relevant receipts and submit them before your insurer will issue you a cheque. For these delay claims to be valid, you would also need proof that your flight was delayed or cancelled. The easiest way to get that proof is to take a screenshot from the airline or airport website showing the delay.

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The Business Platinum Card From American Express

Welcome offer: Earn 120,000 Membership Rewards points after you spend $15,000 on eligible purchases with your card within the first three months of card membership. Based on TPGs valuations, the 120,000-point bonus is worth $2,400.

Rewards: 5x on flights and prepaid hotels booked through Amex Travel 1.5x on each eligible purchase in select business categories ,as well as on each purchase of $5,000 or more 1x on other eligible purchases

Travel insurance:

Annual fee: $595

The Amex Business Platinum provides an impressive 5x on flights and prepaid hotels booked through Amex Travel. Based on TPGs latest valuations, this means youll get a 10% return on these purchases. But, if you dont want to book through Amex Travel and would prefer to earn bonus points on a wide variety of business expenses, you may be better off with the Ink Business Preferred Credit Card.

Is Credit Card Travel Insurance Any Good

Credit Card Travel Benefits Survey Q& A

Yes. For most travelers with no irregular conditions, credit card travel insurance will serve you well in case of any interruptions or delays. However, those who have pre-existing conditions should be wary as credit card travel insurance will not offer you coverage. Or, if you’re looking for coverage specifically related to the coronavirus, you’ll need to purchase additional travel insurance ideally one with cancel-for-any-reason coverage.

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Rental Car Collision/loss Damage Insurance

Generally speaking, rental car collision/loss damage insurance covers you if your rental car is damaged or stolen while you have possession of the vehicle. Unless your regular auto insurance already covers car rentals, then having this type of insurance is a must when youre renting a car during your travels.

Be aware that car rental insurance can have quite a few conditions relating to the type of car youre renting and its current value. You wont have any problem getting insured for a vehicle thats available at all major car rental agencies, however, if youre renting an antique, exotic, or expensive car, you may not be covered. As long as the value of the vehicle youre rentingalso called the Manufacturers Suggested Retail Price is less than the total insurable amount offered by your credit card travel insurance, then youll be fine.

Some rental car collision/loss damage insurance policies will cover any personal items that are lost when your vehicle is stolen , but they are unlikely to include liability insurance , so factor that in when youre assessing your insurance needs.

For this policy to apply, you must decline the car rental agencys insurance. It should also be noted that youre responsible until the car rental agency has completed its inspection report, so avoid just dropping off your keys when youre returning your vehicle.

offers the best value in this category, with max coverage of $85,000 for car rentals under 48 days.

Can I Drive A Rental Without Insurance

In most cases, you can drive a rental car without showing any proof of insurance at all. Each rental car is insured by the rental car company to at least the state minimum requirements. However, depending on the state or states where you are traveling or renting the car, those minimums may be quite low.

If you are not using a credit card that offers car rental insurance and your personal car insurance does not cover you, then your rental agreement states that you are on the hook for any damage you cause during the rental. The car rental company will bill you for things including damage to the car, liability for damage to other cars, people, or property, and money from loss of rents by the rental vehicle.

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For Slow But Steady Miles Earners: Citi Premiermiles Visa Card

With Citibank cards, you earn Citi Miles which, unlike regular miles, never expire. The regular earn rate is 1 Citi Mile per S$1 local spend and 2 Citi Miles per S$1 overseas spend in foreign currency .

But heres the best part: the earn rate dramatically amps up to 12 Citi Miles per S$1 spent on Kaligo and 7 Citi Miles per S$1 spent on Agoda. This makes the Citi PremierMiles Visa Card a great card to use on booking your travel tickets and accommodation.

Enjoy travel insurance coverage of up to S$1,000,000 when you charge your full travel fare to your Citi PremierMiles Visa Card.

It covers medical expenses of up to $40,000 per traveller. Travellers are the principal or supplementary cardholder, and his/her accompanying legal spouse and children. In the event you need to be medically evacuated or repatriated, you will be covered for up to $100,000 per traveller.

Citis complimentary travel insurance also covers the costs of repatriation of mortal remains and will cover up to S$50,000 per traveller.

One thing to note, however, is that coverage for travel inconvenience is only applicable for the cardmember. These include:

  • baggage loss
  • flight or baggage delay
  • trip cancellation

Scotiabank Passport Visa Infinite* Card

Top 3 Credit Cards That Give Free Travel Insurance

Minimum Income: Age: Residency: Other:

One of my favourite airport lounge access cards is the Scotiabank Passport Visa Infinite* Card, which gives cardholders six annual passes on the Priority Pass airport lounge program. If you use all your passes before the annual renewal, you can pay for entry at a cost of US$27 per person, per visit. The allotment of 6 yearly airport passes makes this the most generous among comparable premium cards.

You can save significant cash if you travel frequently outside of Canada, thanks to the cards lack of foreign transaction feesa feature that helps offset its $139 annual fee. Youll get 2 Scene+ points for each $1 you spend on groceries, dining, entertainment and daily transit costs, including things like subways, taxis and more. Points can be redeemed for travel, merchandise and gift cards.

The welcome offer allows you to earn up to 30,000 bonus Scene+ points in your first year . Plus, no annual fee in the first year, including on supplementary cards, terms and conditions apply.

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What To Be Aware Of When Choosing A Credit Card With Free Travel Insurance

When credit card providers offer free features such as insurance, it can often mean the card is more costly in fees and interest. Just as you would do when comparing rewards cards, think about what you are getting from the card, and how much you are paying for those features.

The key to choosing the right credit card in any circumstance is making sure it offers value for money. Think about what you are getting from the travel insurance, what cover it offers, what exceptions there are, and how often you are going to use it.

The Best Credit Cards With Lounge Access

While there are more than 20 airport lounge access credit cards, Ive selected the best and most popular ones in the list below. Keep in mind that each card has its own individual benefits, so Ive also provided a link to my reviews if youre looking for more details. Also, note that you can always apply for multiple credit cards with lounge access which essentially gives you more free passes and can be ideal for those travelling as a family. Best of all, the credit cards Ive featured below also make my list of the best travel credit cards in Canada so you know youll have a winner with any of these cards.

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Best Travel Credit Cards For Seniors In Canada

My in law had some health issues last year and after she got better, we were thinking of doing a spontaneous small road trip down to the US and some traveling overseas . While she was looking at coverage for insurance through her credit card, we were shocked to find that coverage was actually very minimal especially for her pre-existing condition and age. Here are the best travel credit cards for seniors in Canada.

In the end she decided not to do the small road trip down to the United States because she would not be covered for health issues related to her pre-existing condition should anything happen, and we all know how much medical costs can be in the US.

Last year, my husband was admitted for less than 24 hours and it cost around $10,000. Thankfully we had travel insurance through my employer. Your travel insurance will ask you if you have eligible credit card travel insurance and they will go after them first to try and collect money.

This goes without saying that it reinforces my desire to travel as much as I can before I am too old to enjoy my travels and also too aged to qualify for decent travel insurance without paying an arm and a leg. I will still want to retire happy and travel though, but ideally Id like to travel to my bucket list destinations before I turn 65.

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