Here’s why I buy an annual travel insurance policy, even though my credit cards offer travel protections

02.10.2024 - 21:15 / thepointsguy.com

Chances are you have a credit card that offers some type of travel insurance or trip protection. This could be for benefits like trip delay reimbursement or lost luggage insurance. With these protections, purchasing a travel insurance policy may seem unnecessary.

When I first got into the world of credit card points and miles, I thought, "I'm never buying travel insurance again because my credit cards cover it!"

So why do I buy an annual travel insurance policy for myself and my wife? Isn't that an unnecessary expense? Here's why I buy an annual travel insurance plan, even though my credit cards offer numerous trip protections.

Before we understand which credit cards offer travel insurance benefits and why I carry an annual policy, let's define travel insurance.

Travel insurance is a catch-all term for a policy that covers you against financial losses during travel. This could include things such as lost property, lost money from accidents or delays, unforeseen medical bills and even serious injuries — or accidental death.

Policies vary in what they cover, when the coverage becomes active, which events trigger your policy's coverage and other intricacies. There's also an add-on "cancel for any reason" insurance on some policies.

Before discussing why I carry an annual travel insurance policy, let's look at some popular travel credit cards to see what protections they offer. We can then use this to see what they don't cover, as well as to understand when coverage is and isn't in effect.

Here are four popular travel credit cards and the coverage they provide for travel mishaps:

*Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by New Hampshire Insurance Company, an AIG Company.
**Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Cardmembers are
responsible for the costs charged by third-party service providers.
***Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company.

Related: The 9 best credit cards with travel insurance

From the chart above, the list of travel protections and trip insurance provided by credit cards appears quite robust at first. Unfortunately, there are parts of your upcoming trip that may not be covered by your credit card's travel protections — which is why I carry an annual travel insurance policy. Let's look at what isn't covered by your credit card travel insurance because some of this information may surprise you.

Firstly, your credit