8 Instances When Your Credit Card’s Travel Insurance May Not Provide Coverage

Travel insurance is an excellent benefit offered by several travel rewards credit cards. If you encounter issues during your travels—such as lost luggage, delayed flights, or unexpected medical emergencies—your credit card's travel protection might help you save significantly.

While having some level of travel insurance can be a great advantage of your credit card, it’s essential to recognize that it doesn’t cover every possible situation. Like any insurance, there are circumstances when the travel insurance linked to your credit card may not offer protection.

Each policy has its own specifics, so you’ll need to verify with your card issuer regarding the exact details and limitations. Typically, a comprehensive overview of your card's benefits and exclusions can be found online.

Here are eight situations in which your credit card's travel insurance likely won't come to your aid.

Using the incorrect credit card

Certain card issuers mandate that you charge travel-related expenses (or at least part of them) to their designated card to receive coverage if issues arise. If you use multiple cards to maximize rewards on your travel purchases, you might end up with only limited protection.

For instance, if you book your flights and hotel with your Ink Business Preferred® Credit Card but opt for another card for your excursion expenses, those excursions might not be protected if your trip is unexpectedly disrupted by a hurricane. However, if the second card also provides travel insurance, you may just need to submit multiple claims.

Preexisting health conditions

If you have to cancel your trip due to a preexisting health condition, you may find it challenging to secure a reimbursement through your card's trip cancellation coverage. This also applies if you require emergency medical evacuation while traveling.

Depending on the travel insurance policy of your card issuer, there might be a potential workaround. If you were unaware of the medical condition beforehand, you might have a strong case when filing a claim.

Traveling for medical purposes

Are you heading to a destination specifically to see a doctor or receive medical treatment? If that’s the case, it closely aligns with the definition of traveling with a preexisting condition.

If the primary reason for your trip is to receive medical treatment, there's a strong possibility that your credit card's insurance policy won't provide coverage if issues arise. In this case, you might want to look into a standalone travel insurance policy that includes a waiver for preexisting conditions for better protection.

Trip duration may not qualify for coverage

The travel insurance policy associated with your credit card might only cover trips of a specific duration. You could encounter coverage complications if your trip is either too long or too short.

For instance, with the Chase Sapphire Reserve®, coverage is not available if your trip exceeds 60 days. Similarly, with the The Business Platinum Card® from American Express, travel lasting longer than 365 days away from your primary residence is not eligible for trip cancellation or interruption claims.

Traveling to a conflict zone

Visiting a region classified as a war zone (whether officially declared or not) can pose significant concerns, particularly regarding canceled flights or other travel disruptions due to military actions or conflict. In such cases, expenses related to these issues are often not covered by travel insurance through your credit card provider.

Regardless of whether conflict arises before or after your arrival, your card's travel insurance is unlikely to provide coverage. If you're heading to a region known for instability or past unrest, consider obtaining supplemental travel insurance for additional security.

Recent claim submission

Certain credit card travel insurance policies impose a cap on the total amount you can claim for reimbursement within a 12-month period. Therefore, if you've recently submitted a substantial claim, you might find yourself ineligible for further compensation.

It's important to highlight that The Platinum Card® from American Express provides many of its benefits on a per-trip basis, which means you might not need to be overly concerned about this specific limit if you hold this card.*

*Eligibility and benefit levels differ by card. Terms, conditions, and limitations apply. For details, visit americanexpress.com/benefitsguide. Policies are underwritten by New Hampshire Insurance Company, an AIG Company.

You test positive for COVID-19

COVID-19 is frequently classified as a non-eligible illness for coverage under certain credit card travel insurance policies. Whether you need to cancel a trip, adjust your travel dates, or quarantine due to a positive COVID-19 test, you may find yourself covering those costs out of pocket.

Not all coverage is created equal

Travel insurance varies significantly among different card issuers. For instance, both the Chase Sapphire Reserve® and the Chase Sapphire Preferred® Card provide coverage for trip cancellation and interruption. In contrast, the Amex Platinum offers this benefit solely for round-trip travel booked entirely with an eligible card.*

Additionally, while the Sapphire Reserve includes emergency medical evacuation insurance up to $100,000, the Sapphire Preferred does not offer this coverage.

*Eligibility and benefit levels differ by card. Terms, conditions, and limitations apply. For further details, visit americanexpress.com/benefitsguide. Policies are underwritten by New Hampshire Insurance Company, an AIG Company.

Should you consider additional coverage?

No one enjoys contemplating potential mishaps while traveling away from home. However, issues and even disasters can arise during trips. With the right travel rewards credit cards and an understanding of their travel insurance benefits, you can find some reassurance.

You might also think about purchasing third-party travel insurance to enhance your coverage. Independent travel insurance can sometimes offer protection when your credit card's travel insurance policy falls short.

Keep in mind that additional travel insurance comes with a price tag. This investment is worthwhile in certain circumstances but not in others. If you're thinking about a separate travel insurance policy, it's wise to compare costs, benefits, and coverage limitations beforehand.

In conclusion

Whether or not you decide to invest in additional third-party travel insurance, it’s beneficial to familiarize yourself with the travel protections that the credit cards in your wallet may provide. Just be sure to understand the rules and limitations of your card’s travel insurance benefits; otherwise, you could face unexpected surprises if you need to utilize them.