What are the Pros and Cons of Purchasing Travel Insurance through a Credit Card Provider?

Pros and Cons of Purchasing Travel Insurance through a Credit Card Provider

Purchasing Travel Insurance through a Credit Card Provider can be a convenient option, as many credit card companies offer complimentary or optional travel insurance coverage. However, it is important to weigh the pros and cons before solely relying on this coverage. Typically, it is recommended to buy coverage from a reliable insurance company or provider, but a credit card company can offer you a comprehensive plan that can secure you financially abroad.

Let’s read about the pros and cons.

What are the pros?

It saves money.

Many credit card companies offer complimentary travel insurance as a benefit to cardholders. This can save you money on buying a separate travel insurance policy, especially if you travel frequently or have multiple trips throughout the year.

It is convenient.

Since the policy is tied to your credit card, you do not need to go through a separate application process or deal with additional paperwork. The coverage is automatically activated when you use your credit card to pay for eligible travel expenses.

It offers standard coverage.

Credit card travel insurance policies provide standard coverage for common travel and medical related risks. The coverage offers a basic level of protection for unexpected events that may disrupt your travel plans.

It may provide additional benefits.

Many credit card companies may offer additional travel-related benefits, depending on your credit scores. These can include travel assistance services, emergency medical assistance, roadside assistance, or rental car insurance coverage. These added benefits can improve your travel experience and provide extra support during your vacations.

It requires no additional cost.

If your credit card already includes travel insurance as a complimentary benefit, then there may be no additional cost to activate the coverage. This can be advantageous if you want some level of protection without paying an extra premium.

It has an easy claims process.

If you need to make a claim, the process may be streamlined since the insurance coverage is directly linked to your credit card. The card issuer may have a dedicated claims department to handle claims and filing, making it easier and convenient for cardholders.

However, it is important to note that the level of coverage and specific terms can vary among credit card providers. Be sure to thoroughly review the terms and conditions to understand the extent of your coverage, the limitations, the benefits, and any additional requirements needed for activating or using the coverage.

While credit card travel insurance can provide convenience and cost savings, it is essential to assess your travel needs and ensure that the coverage meets your specific requirements. If the coverage does not meet your travel and medical needs, you may still need to consider buying an additional travel insurance plan from an insurance provider.

What are the cons?

The coverage may be limited.

Credit card travel insurance coverage tends to have lower coverage limits and may not offer the same level of protection as standalone travel insurance policies. It may not cover all aspects of your needs, such as a comprehensive travel medical insurance policy.

The plan can have restricted eligibility.

Credit card travel insurance may have eligibility criteria, such as requiring you to pay for your trip using the credit card or meeting certain spending thresholds. Check the limitations and eligibility so that you can decide if you need an additional policy.

The plan can have a limited trip duration.

Many credit card travel insurance policies have restrictions on the maximum trip duration covered. If you plan to travel for an extended period, your credit card coverage may not be sufficient.

The plan may lack customization.

Credit card travel insurance is a one-size-fits-all option and may not allow you to customize coverage to meet your specific needs. It may not offer add-on options such as adventure sports coverage, rental car damage coverage, or cancel-for-any-reason coverage.

The plan can have exclusions and limitations.

Credit card travel insurance policies often have exclusions and limitations that may restrict coverage. For example, they may not cover pre-existing medical conditions, certain hazardous activities, or specific destinations.


It is essential to carefully review the terms and conditions of your credit card’s travel insurance coverage to understand the extent of coverage, limitations, and any additional requirements. In some cases, it may be worth considering a standalone travel insurance policy to ensure comprehensive coverage that meets your specific travel needs.

Ultimately, the decision solely depends on you- whether to buy a credit card travel insurance plan or buy a separate policy. Assess your needs and compare the coverage and benefits offered by both options to make an informed decision.