There are a lot of uncertainties in life; the weather, the affairs of the world, and medical emergencies, just to name a few. These uncertainties can impact a lot of things in your life, including a vacation that you may have planned.
Though you may have planned the perfect trip, given the fact that there is no way to predict the unpredictable, many travelers are looking to travel insurance to protect their pockets. In the event that the unexpected does happen, a trip insurance policy could provide you with peace of mind knowing that you will be reimbursed should your vacation be canceled or interrupted.
While it is certainly a wise idea to purchase a travel insurance policy before heading on any trip, a lot of people are not aware that they may already be covered in the event that a trip is cancelled. How? – The credit card you are carrying in your wallet may offer trip cancellation insurance.
There are several different credit card providers that will reimburse you the amount you spent on prepaid expenses for a trip if you have charged the expenses on the credit card and your trip is canceled or interrupted. However, it is important that you have a full understanding of what circumstances your credit card will cover and how much money you will be reimbursed.
Here’s an in-depth look at the important information that you need to know regarding the trip cancellation insurance that your credit card may offer.
Free Coverage Is Usually Limited
Credit cards will only reimburse you a specific amount of money. For example, some credit card providers may reimburse up to $1,000 worth of pre-paid expenses, while others may cover up to $10,000. Additionally, your credit card provider may only offer reimbursement if your trip is canceled or interrupted for a specific reason; the airline you booked your flight with filed for bankruptcy, for example. Other credit card providers will reimburse you for a variety of reasons; for instance, bad weather, an evacuation or perhaps even a summons to serve on jury duty. Lastly, your credit card may only reimburse you for one aspect of your trip, such as the air fare, or it may reimburse you for several different pre-paid expenses, including your air fare, hotel reservations and rental cars that you have paid for with that card.
It’s important to fully understand what your credit card will cover and how much it will reimburse you. Make sure you do a thorough investigation so that you know how your card will protect you. If you simply rely on it, hoping that it will reimburse certain costs, you may be in for a rude awakening in the event that your trip is canceled or interrupted.
Exclusions and Paperwork Should be Expected
You should be aware that there will likely be exclusions regarding the coverage that your credit card provides. For example, if you have a pre-existing medical condition and your trip is canceled or interrupted as a result of that condition, it is highly unlikely that you will be reimbursed by your credit card provider.
You should also be aware that you are going to have to file a claim, which can involve an extensive amount of paperwork. You will need to show proof to the credit card company that your trip was canceled or cut short, and the reason for the cancellation or the interruption. Even upon doing that, your credit card company may not reimburse you. If the cancellation or interruption was not the result of a reason that your credit card provider covers, don’t expect to receive any money back.
Also, when filing a claim with your credit card provider, you will have to do so within a set period of time. Some companies require you to file a claim within 20 days, while others offer a longer window, such as 90 days.
Travel Insurance is a Wise Idea
Though your credit card may offer trip cancellation insurance, you should still consider investing in a separate travel insurance policy. The gaps and limitations of the coverage that your credit card provides may not offer you the financial protection that you need.
Travel insurance policies offer much more coverage, and they can offer much more coverage. There are different types of coverage available, so you can choose the option that will best meet your needs; however, even the most basic trip insurance plans will provide you with more comprehensive coverage than your credit card will.
When you are buying trip insurance outside of the insurance that your credit card offers, so make sure that you have a thorough understanding of the policy so you know exactly what it covers. With a separate travel insurance policy, you will have much greater peace of mind when you are traveling.