A (Very) Beginner's Guide to Credit Card Travel Insurance

I have always wondered about travel insurance and this article from DailyDrop is a good one.

We obviously love travel around here. There are so many incredible things about traversing the world, but… there are also some not-so-nice things. Like getting sick abroad 🤢 or having your flight canceled 😩

Fortunately, there’s this little thing called credit card travel insurance that (shocker!) does actually exist. But where is it hiding? How do you access it? Is it true that it comes with your credit cards? Or should you purchase additional coverage?
Slow down a bit with the questions, my friends. We all have ‘em. Yet, somehow, the traveling world as a collective group still struggles to have clear answers to these.

Seriously, how the heck does credit card travel insurance work?!

As always, we’re here to save the day by keeping you in the know for all travel-related news, tips, and inspiration. So buckle up and get ready for this one. We’re going to do our best at debunking the mysteries around travel health insurance and trip protection so that you’re best informed before you leave for your next trip 🌎

The Basics of Credit Card Travel Insurance
Several of us here at Daily Drop have had to deal with being ill when out of our home countries, and it can be scary, stressful, and well… foreign.
Fortunately, most of these illnesses have been in the form of head colds, other upper respiratory viruses, mild flu, and stomach issues. I’ve personally never had to go to a hospital while abroad, but I have gone to a doctor in Italy when I needed antibiotics for strep (that was loads of fun, as you can imagine).
I’ve also never had a major accident that resulted in severe physical injury or required surgery (though I did wreck my knee skiing in the Alps and just chose to deal with it when I got home 🥴). I still have those dope European forearm crutches as proof!
And I think we can all raise a hand when it comes to experiencing a trip being delayed, interrupted, or canceled altogether.
ANYWAY. Enough reminiscing about those super enjoyable times 🙄 We’re going to talk about two main sources regarding travel insurance. The first is credit card-specific travel insurance and the second is an independent travel insurance plan.

What is Credit Card Travel Insurance?
Credit card travel insurance is just like regular travel insurance, but it comes with a whole bunch of terms and conditions. To be honest, any insurance plan today comes with its own complicated terms and conditions.
In general, there are two types of policies when looking at travel insurance:
🚑 Travel Health/Medical Insurance:
Medical treatment: If you are sick or injured while traveling and require medical treatment, some medical expenses may be covered.
Medical evacuation: If your injury or illness requires you to return home immediately to receive care, the coverage with your card may cover some of these costs.
Travel accident: In the case of accidental death or dismemberment, your card may provide coverage to you or your beneficiary.

🛄 Trip Protection
Trip delay: If your trip on a common carrier (plane, train, bus, boat) is delayed, you may receive monetary compensation up to a certain amount to cover the essentials (e.g. meals, accommodation, additional transport)
Trip cancellation: If you need to cancel a trip that is prepaid and/or nonrefundable, you might receive compensation for the lost funds depending on the covered reasons for cancellation.
Trip interruption: If you miss part of your trip due to a covered reason (e.g. perhaps an illness or trip delay), you may be reimbursed for any unused, prepaid, or nonrefundable reservations (e.g. hotels, activities).
Baggage delay: If your bag doesn’t arrive when you do and where you are (have you gotten an Apple AirTag yet??), you may receive reimbursement to cover purchasing new, essential items. The length of the delay required to get coverage varies.
Lost/damaged baggage: If your luggage is severely damaged by a carrier, is flat-out lost, or has even been stolen, you may receive monetary compensation.
Rental car insurance: This provides coverage for theft and damage to a rental vehicle.
Some credit cards provide you with both medical and trip protection, while others may only have one or the other.
Pro Tip: How much coverage you get and for how long depends on the individual policy. You must also note there are strict conditions in place for your travel insurance to even apply.
Did you read that little bonus tip box right above? Did you read it again? Yeah, because that right there is what makes travel health insurance so dang confusing.
Most credit card travel insurance policies look like 17 pages of this. And no, I’m not kidding 😳

The loopholes are loopy, the terms and conditions are super condition-y, and the coverage just makes no sense sometimes… kinda like the bizarre high school experience where we’d all start our day with a rice crispy treat and a Capri Sun, then would learn about the Pythagorean theorem and Emily Dickinson, and then would go run a random mile all in the span of like four hours. Makes no sense, am I right? I say all of this just to emphasize the importance of reading the fine print (and maybe even contacting your credit card’s customer support) to ensure you understand what coverage you’ll get and under what circumstances.
What Credit Cards Come with Travel Insurance?

It’s super important to note that the types and levels of coverage and protection vary tremendously between different cards. Many of these policies have exclusions or limitations to your coverage.
And generally, your travel expenses need to be booked with the card whose insurance and coverage you would be claiming if needed (e.g. you can’t claim coverage for trip disruption on one card when the carrier was booked using a different card).
What are the Benefits of Having a Credit Card with Travel Insurance?
There are a handful of benefits to having a credit card that comes with travel insurance when you use it to book eligible travel expenses.
👍 Simplicity: No need to research other plans if you know your card covers you (but realize that may not always be the case).
💵 Saves money: Bringing on an independent insurance plan will cost you extra $$$.
💳 Miles and points use: Most cards will honor an insurance claim even if you use points to book your travel (as long as you pay for the taxes and fees with your card).
🙏 Reassurance: You can rest easy knowing that if something goes wrong, you’ve got some protection in place.
Our Top 7 Favorite Credit Cards with Travel Insurance (Medical and Trip Coverage)
This list is absolutely not comprehensive of all the options that are out there. After conducting our own research, we’ve chosen these cards to use as examples because we love them for lots of other travel reasons ❤️