Credit cards often provide coverage
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| Credit cards often provide coverage |
Some credit cards provide excellent travel insurance advantages, while others provide little or no coverage. It is wise to spend time researching what is covered before getting a separate travel insurance policy.
Travel accident insurance
At first glance, this may seem like a type of protection for a broken arm or moderate laceration. However, it is more akin to life insurance and usually only covers death or dismemberment. In the case of an accidental death on a plane, bus, or train paid for using a credit card, the cardholder's survivors are entitled to the entire benefit. Dismemberment of fingers or limbs results in only a partial advantage. As a result, medical travel insurance is an absolute need.
Trip cancellation insurance
If a vacation is canceled due to sickness or an unanticipated occurrence, the credit card issuer may repay the non-refundable fees if the expenditures were paid for using the card. Cancellations due to pre-existing medical issues are not covered, and only approximately 15% of credit cards provide trip cancellation insurance. People with chronic conditions might consider purchasing preexisting condition coverage.
Lost luggage insurance
If baggage is lost and the airline does not give enough compensation, a credit card company will reimburse up to a specified amount if the trip was booked with the credit card. This is an excellent advantage for those who do not have homeowner's or renter's insurance. Before purchasing this coverage, always read the small print. Many things, including spectacles and hearing aids, skis, and tennis rackets, are often banned. In this case, additional travel insurance with luggage coverage is a wise investment.
Insurance for rental cars
Rental vehicle businesses sometimes charge upwards of $30 per day for collision insurance. Their average limit is about $35,000. Credit card issuers may offer some limited coverage for repairs after an accident. Many travel insurance packages provide a more liberal coverage limit for around half the amount paid by rental vehicle providers. This is beneficial for anyone who does not have personal vehicle insurance, including rental automobiles.
Credit card providers may also provide coverage for lost or damaged mobile phones. Check the coverage and exclusions. When purchasing independent travel insurance, choose a plan that covers what your credit card provider does not.