Credit Card Travel Accident Insurance Pros and Cons

Did you know your credit card might provide travel accident insurance? It’s essentially life insurance – or insurance for severe injury – that you get when you use your card to buy tickets for certain types of travel. This type of insurance is available with most cards and it’s pretty easy to use. You basically just buy your tickets with the credit card and the insurance kicks in if tragedy strikes.

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Like most things, travel accident insurance through your credit card has pros and cons. The good definitely outweighs the bad, though! Here’s what you need to know:

Pros

1. It’s free. Most credit cards already have this benefit. There’s no deductible or anything. It’s just part of your card and what it can do for you. However, you do need to call your credit card company or check your paperwork carefully to see if you’re covered in this way.

2. It’s helpful in a time of crisis. No one likes to think about times of crisis, particularly when they’re on vacation! However, things do happen. In the case of death, costs can be heavy for getting a body back home. The insurance that comes through your credit card can cover this expense.

3. It’s often a lot of coverage. For the most part, travel accident coverage is between $100,000 and $250,000. That’s plenty of money for your basic needs or the basic needs of your family if something happens to you when you’re traveling.

4. It covers most major ways to travel. If you pay for plane tickets, a cruise, train tickets, or a bus trip with your credit card, you’ll probably be covered by this insurance.

5. Some companies cover travel on the way to the travel. For instance, Visa travel insurance covers accidents that happen, for example, in a taxi on your way to the airport. As long as your tickets are purchased and you’re going directly to a travel hub, you’ll probably be covered.

6. The money goes to your estate. In case of death, this insurance works just like life insurance. Your dependents or estate get the pre-set payout, so this is basically extra life insurance when you’re traveling.

Cons

1. You may need to purchase tickets separately. For the most part, travel insurance kicks in for you and your dependents as soon as you buy any tickets. Sometimes, though, card companies are picky and not every family member gets the same coverage if all the tickets are purchased together. Check with your company to see if you can buy tickets together or separately.

2. It does not cover all forms of travel. Travel accident insurance covers travel by common carrier, including commercial aircraft, bus, and train. Taxi rides and other less common forms of travel are often not covered.

3. Limitations apply. As always, there are limitations and exclusions, so make sure you read the terms and conditions of your specific credit card closely.

As you can see, travel accident insurance is a great credit card benefit to have. Luckily, most credit cards come with it. You may be missing out, though, if you have a lower credit score and have a secured card or one without many benefits. To find out about your travel accident coverage, call your credit card company or look through the benefits listed in your paperwork. If you’re shopping for a new card, now is a good time to make sure you’re covered.

Follow @CreditDonkey or write to Abigail Hall at abigail@creditdonkey.com

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