Despite holding a travel rewards credit card offering benefits such as trip cancellation and interruption coverage, a travel expert prioritizes an annual travel insurance policy for comprehensive protection against unforeseen circumstances, particularly when traveling internationally. The decision stems from limitations in credit card travel insurance, especially concerning medical emergencies and evacuation.
While credit cards offer perks like trip cancellation coverage, travel delay insurance, and auto rental coverage, the expert emphasizes the importance of supplemental travel insurance. This is particularly crucial because personal health insurance plans often lack adequate coverage for international travel, and emergency medical coverage provided by travel credit cards often falls short of potential needs.
The Chase Sapphire Reserve®, often lauded as a premier travel credit card, provides a limited $2,500 in coverage for emergency medical and dental bills, subject to a $50 deductible. It also offers an additional $75 per day for up to five days of hotel stays due to a covered injury. However, these amounts may be insufficient for significant medical emergencies encountered during travel.
The expert’s annual travel insurance plan from Allianz provides up to $50,000 in medical expense coverage per traveler, per trip. This substantial coverage offers peace of mind, ensuring access to necessary medical care without financial strain in case of illness or injury while abroad. Furthermore, the plan includes coverage for emergency medical evacuation, which is often limited or absent in credit card travel insurance.
Emergency medical evacuation coverage is vital for international trips, covering costs associated with ambulance transfers to hospitals in foreign countries or medical evacuation by helicopter. It can also facilitate international transportation to the traveler’s home country if their medical condition necessitates it. The Chase Sapphire Reserve® offers $100,000 in emergency medical transportation coverage, but the expert’s Allianz plan provides a significantly higher $500,000 per traveler, per trip.
Another factor influencing the decision to purchase separate travel insurance is the requirement by some credit card companies that the trip’s main components be purchased using the card for travel insurance benefits to apply. The expert often uses various rewards programs or credit cards to pay for travel, meaning credit card travel insurance may not always be applicable.
Moreover, the expert occasionally travels for work, with flights and hotels often paid for by another company. In such scenarios, international coverage for medical expenses or emergency medical evacuation would be absent without a separate travel insurance policy. The expert also noted that even when using points, some Chase cards will allow coverage to kick in if the taxes and fees are paid with the card.
With an annual cost of less than $500, the expert considers the comprehensive coverage provided by the travel insurance plan a worthwhile investment. The plan offers assurance that in the event of serious injury or illness during international travel, adequate medical care and evacuation services will be accessible. While credit card travel insurance provides a valuable perk, it’s not always sufficient to cover all potential risks.
