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When Third-Party Travel Insurance Will Cover Costs That Credit Cards Won’t

When Third-Party Travel Insurance Will Cover Costs That Credit Cards Won’t

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ST. PETERSBURG Fla. June 5, 2019 — Many credit card companies are known for attracting customers with added benefits like built-in travel insurance, but depending on a traveler’s needs, this coverage may not be the best option. Travel insurance comparison site, Squaremouth, explains three instances where third-party travel insurance policies can cover costs that credit cards won’t.

When A Medical Emergency Strikes

Most credit cards don’t include medical coverage if a traveler has a medical emergency while traveling. If a credit card does come with travel medical benefits, it is often a limited amount, ranging from $2,500 to $5,000.

Third-party medical insurance offers more comprehensive medical coverage, with benefits starting around $10,000 for Emergency Medical and $100,000 for Medical Evacuation, and can exceed a million dollars. Third-party policies can also offer coverage for pre-existing conditions, including chronic conditions and recent diagnoses, illnesses, or injuries.

Squaremouth recommends at least $50,000 in Emergency Medical coverage and $100,000 in Medical Evacuation coverage for international travel, and higher amounts for cruises or remote travel.

When Your Travel Plans Get Derailed

Many credit cards offer Trip Cancellation coverage to customers who pay for trips through their card, reimbursing travelers who are unable to take their trip as planned. However, these cards typically limit coverage to a specific amount, with the most generous cards covering up to $10,000 per trip.

Travelers who need more coverage for their trip can compare and buy a policy from a third-party insurance provider. These policies can cover much higher trip costs and can reimburse up to 100% of prepaid and non-refundable travel expenses, such as airfare, hotels, and tours.

When You Want A Catch-All Upgrade

Many travelers want the flexibility to cancel a trip without needing approval from their credit card or travel insurance company. Unfortunately, the standard Trip Cancellation benefit only reimburses travelers who cancel for specific reasons, such as illness, death, severe weather, or terrorism.

For travelers looking for the broadest coverage, some third-party policies offer Cancel For Any Reason to partially reimburse them to cancel for reasons that are not covered by the standard Trip Cancellation benefit.


ABOUT SQUAREMOUTH

Squaremouth compares travel insurance policies from every major travel insurance provider in the United States. Using Squaremouth's comparison engine and third-party customer reviews, travelers can research and compare travel insurance policies side-by-side. More information can be found at