While you never want to expect the worst-case scenario when traveling, you can’t control when things are going wrong.
In light of this year Winter weather-related travel disruptions. and civil unrest in MexicoAmong other incidents, it is worth reviewing what your plan would be if you need insurance or protection in case of breakdowns.
When you’re thinking about protecting your trip, buy an insurance policy It may be the first option you consider. While there are multiple providers with plans for different types of travelers, in some cases, the best option may be to rely on the protections offered by a premium credit card.
Let’s compare and contrast travel insurance with premium credit card protections to help you decide which is best for your situation.
What does travel insurance cover?
Travel insurance varies in price and scope, but you can usually purchase a policy for a small premium (relative to the cost of your trip) that can provide reimbursement for unexpected problems.
What travel insurance covers depends on the provider and policy you choose. Typically, you can expect travel insurance to include:
Buying travel insurance is a decision that varies from person to person and situation to situation. Consider where you will be traveling, the types of activities you will engage in during your trip, and how much risk is associated with each of these aspects before making a decision.
The best travel insurance providers
There is a long list of companies that offer travel insurance policies. These are some of the most common providers on the market:
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- Allianz travel insurance
- American Express Travel Insurance
- geoblue
- IMG
- travel guard
- Travelex Insurance
- Nomads of the world
Related: The best travel insurance policies and providers.
What do premium card protections cover?
Travel enthusiasts often focus on the rewards and perks of their cards, but many premium cards also come with an underrated set of travel protections that can kick in under unexpected circumstances.
Each card will have its own package of travel insurance policies, so read your card’s benefits guide before you travel.
In general, you can expect premium travel cards to have some degree of policies related to:
Each card will offer a different level of coverage and its own set of protections. If insurance is important to you, review policies before selecting a premium card.
The best premium cards for travel protection
Related: Your Guide to Chase Travel Insurance Coverage
Comparing coverage
For the purposes of this article, let’s compare the protections of a popular travel insurance provider with those offered by one of the best premium cards on the market for travel protection.
He Sapphire Reserve charges an annual fee of $795 and is considered one of the industry leaders in card provided travel insurance coverage. When it comes to travel insurance, Allianz offers the AllTrips Premier plan. I ran the numbers on a 30 year old person who resides in Florida and they quoted me $485.
Here’s a side-by-side comparison in key areas:
| Coverage area | Sapphire Reserve | Allianz AllTrips Premier (Florida resident) |
|---|---|---|
|
$100 per day for up to five days if you are at least six hours late |
$2,000 per insured, per trip |
|
|
Up to $3,000 per covered person, per trip (sublimit of up to $500 for jewelry and watches and up to $500 for cameras and other electronic equipment per covered person) |
$2,000 per insured, per trip |
|
|
$2,500 with a $50 deductible |
$50,000 per insured, per trip |
|
|
Up to $100,000 |
$500,000 per insured, per trip |
|
|
Rental car damage and theft
|
Up to $75,000 |
$45,000 per insured, per trip |
|
$1 million for loss of life on common carriers; $100,000 for loss of life in 24 hours |
$50,000 per insured, per trip |
|
|
Trip cancellation/interruption
|
$10,000 per covered person, per trip (up to $20,000 per trip) |
$2,000 per policy, per year |
|
$500 per ticket when delayed at least six hours or overnight |
$1,500 per insured, per trip |
Both policies also include 24-hour assistance services.
Of course, any comparison will vary depending on the premium card you choose and the provider you select. This is an example; There are many combinations out there.
Related: Who is covered by credit card travel insurance?
Should I buy travel insurance or get a premium credit card for travel protection?
Generally, coverage varies depending on the card you choose or the external policy you consider. In general, if you have health insurance that covers you while traveling, relying on a premium rewards card for travel insurance is a good option for many.
Many travelers are attracted to a credit card with rewards such as Sapphire Reserve for more than just insurance benefits. The fact that you can use it to book your trips, earn rewards, enjoy perks, and be protected by multiple types of coverage likely gives you an advantage over purchasing travel insurance coverage outright.
Of course, consider your own situation before making a decision. But if you read your premium card’s benefits guide and are happy with the level of insurance, you may not need to purchase travel cover before your next trip.
Related: Should you get travel insurance if you have credit card protection?
In a nutshell
There are several circumstances, such as remote locations or unique circumstances and excursions, that may prompt you to purchase outside travel insurance.
However, for many types of travelers and trips, depending on your premium card’s travel protections, the built-in benefits of a premium credit card may be more than enough for refunds and insurance while you’re traveling.
As always, check your card’s benefits guide and weigh the pros and cons of your particular situation before making a decision.
Related: Why every woman traveling alone needs a card with travel insurance
