How much does travel insurance cost?
A travel insurance policy usually costs about 5 to 7 percent of the cost of the trip, Mueller says.
Price is determined by the cost of the trip, the length of the trip and the traveler’s age, says Steven Benna, spokesman for the travel insurance site Squaremouth.com.
If your trip costs $12,000, and your credit card provides $10,000 in trip interruption and trip cancellation insurance, you can save money by buying just $2,000 more in coverage from a travel insurer, he says.
What are the types of travel insurance?
The types of coverage offered can vary greatly from credit card to credit card. There also can be big differences between credit card coverage and a travel insurance policy you pay for out of pocket.
Trip cancellation and/or trip interruption insurance
Trip cancellation insurance can reimburse your non-refundable travel costs if you need to cancel your trip for a covered reason, such as illness or injury, before you depart. Trip interruption insurance can reimburse your costs when you’re already on the road and your trip is interrupted for a covered reason, such as an illness or a natural disaster.
Many credit cards provide either trip cancellation or trip interruption insurance, or both.
There can be wide variations in coverage limits for trip cancellation/interruption insurance, and premium cards usually offer more generous policies. For example, the Chase Sapphire Reserve, which has a hefty $450 annual fee, offers both trip interruption and cancellation insurance that provides coverage of up to $10,000 per covered trip, with the maximum benefit limited to $40,000 per 12-month period.
Meanwhile, the no-annual-fee Wells Fargo Visa Signature card provides up to $2,000 of trip cancellation or interruption insurance.
Read the full CreditCards.com article online here: https://www.creditcards.com/credit-card-news/travel-insurance-cards-guide.php?aid=2741cce8&rss_lnk=67