Why Relying on Credit Card Travel Insurance Might be Riskier than it Seems

Posted on: Jan 11, 2022 | 3 mins | Written by: HDFC ERGO Team

Why Relying on Credit Card Travel Insurance Might be Riskier than it Seems

Credit Card Travel Insurance - Travel insurance

While travelling, there’s always the chance of a lot of things going wrong. This is why it’s always a good idea to purchase travel insurance online beforehand to provide a safety net to fall back on in case of any unforeseen incidents such as theft of luggage, injury caused due to any risky adventure activity, etc.

A lot of travellers might assume that their credit card offers them the sort of coverage as a traditional travel insurance policy that can be bought online or from a travel agent. But in a lot of cases, that couldn’t be further from the truth.

Do all credit cards offer travel insurance?

Currently, not all credit cards offer travel insurance. While some do offer basic coverage, their benefits are often limited as compared to traditional travel insurance policies available online.

Even if one’s credit card does have the benefit of travel insurance, it is recommended that the cardholder contacts their respective bank to learn in detail the terms and conditions attached to it.

Some important questions to ask would be whether the card offers trip cancellation insurance and whether it covers medical expenses among others.

Credit card travel insurance: Is it good enough?

Credit card insurance can be a lucrative offer for some. Instead of opting for regular travel insurance online, a cardholder can enjoy certain benefits by simply opting in for credit card travel insurance. Here are some things to think about before considering credit card travel insurance as a viable option

● A cardholder can be reimbursed for trip cancellation due to certain unforeseen circumstances as mentioned in the terms and conditions.

● Baggage theft or loss of the same is also usually covered under credit card travel insurance. Such costs though are often capped to a certain limit.

● Such insurance usually offers a pre-decided sum in case of the accidental death of the cardholder. But deaths caused due to pre-existing health conditions are usually not covered.

Pitfalls of credit card travel protection coverage

There are various shortcomings when it comes to the sort of coverage offered by credit card travel insurance when compared to traditional travel insurance offered online.

● Trip cancellation policies offered under credit card insurance are often limited to certain circumstances such as injury or death. Death due to any pre-existing health condition is not covered unlike that offered under a travel insurance plan.

● Reimbursement of expenses incurred due to any unforeseen accident too is limited under the terms and conditions. Injuries caused by adventure activities such as kayaking, horse riding, etc are not covered under such plans.

● Credit card insurance policies usually tend to cover the expenses of only the cardholder, whereas, travel insurance policies bought online have the option to provide coverage to other co-travellers under the policy.

● The geographical range of protection offered under credit card insurance is often limited when compared to online travel insurance. The latter provides the customer to choose from various plans and benefits which fits their specific needs.

● Theft or loss of high-value goods such as jewellery and electronics among other belongings might also not be covered under credit card travel insurance.

● It is more than likely that one’s credit card insurance will only cover the purchases made with the credit card during the period of travel.

Conclusion

While credit card travel insurance might seem lucrative to some due to its ‘free of cost’ appeal, it often falls short when compared to other travel insurance policies available on the market.

Travel insurance policies are far more flexible and offer customers better coverage in terms of loss of personal belongings, medical expenses and coverage of multiple travellers among others.

Travel insurance policies available online also offer you the option to customize your plan by including various add-ons best suited to one’s needs. In short, the benefits of opting for a standard travel insurance policy for a nominal fee far outweigh those provided by a credit card.

It is important to read the terms and conditions involved with credit card insurance policies as they often come with various hoops that one must navigate through.

After considering all your requirements, if you feel purchasing a travel insurance policy online would be best suited for your needs, check out the coverage provided by HDFC ERGO for a seamless and hassle-free travel experience.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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