If you love traveling, then you probably know that feeling of excitement when you book a trip. Whether it's a solo adventure, a business trip, or a luxury vacation, there's nothing like the anticipation of exploring a new place. But as any seasoned traveler knows, even the best-laid plans can go awry. That's where travel insurance comes in. For most people planning a luxury trip, getting travel insurance is not a priority. Still, more often than not, it ends up becoming the most crucial element that determines how good of an experience they have while traveling. Of course, no one plans to get sick or get hurt while taking a luxury vacation, but the reality is that accidents and delays can happen anywhere, anytime. A good travel insurance policy helps you cover the cost of many things, including medical emergencies and lost baggage.
The good news about travel insurance is that today, you don't even need to buy a separate policy every time you plan a trip. Most high-end travel rewards credit cards offer travel insurance as part of their travel benefits package. Not only that, most credit cards today come embedded with some form of travel insurance, which can cover you in the event of a lost or stolen card, trip cancellation, or other unforeseen events. This insurance can save you the money and hassle of buying a separate policy. So, if you are planning a luxury trip, a credit card embedded with travel insurance can be a great way to save money and time.
In this article, I'll show you the best credit card-embedded travel insurance for your luxury trip. But first, let's check out what sort of coverage you can expect when signing up for a credit card, so you know what good coverage looks like.
What Type of Travel Insurance can Come Embedded Into Your Credit Card?
When you get a credit card embedded with travel insurance, you are basically buying protection in case certain events happen during your luxury trip. The events that are covered by your credit card travel insurance policy are typically unforeseen circumstances that could cause you to cancel your trip, incur additional expenses or require emergency medical treatment while traveling.
Many different types of credit cards come embedded with travel insurance, and the coverage provided by each can vary significantly. While newer options like crypto credit and debit cards may not include these types of benefits, there are many others that do. Before signing up for one, it is essential to understand what is covered by the insurance policy and what is not. Here is a list of the most common types of coverage you can expect to receive and what they're for:
#1 Trip Cancellation and Trip Interruption Insurance
This reimburses you for non-refundable trip expenses if your trip is canceled or interrupted for a covered reason. It could also cover anything from flight tickets back home if your trip was cut short or reimbursement of unused flight tickets, hotel bookings, and other arrangements made prior to departure if the trip is canceled.
#2 Medical Insurance
This provides coverage in case you incur medical expenses while on your trip for any reason. This is one of the most valuable types of insurance to have, since it could mean the difference between life and death if you have an accident or become seriously ill during the trip.
#3 Medical Emergency Evacuation and Transportation Insurance
This provides coverage for emergency transportation and evacuation in the event of a medical emergency, giving you access to fast evacuation that could save your life.
#4 Baggage and Personal Effects Insurance
This reimburses you for lost, damaged, or stolen baggage and personal belongings while en route or staying at a hotel.
#5 Accidental Death and Dismemberment Insurance
This type of coverage, known as an ADD policy, is a ubiquitous part of credit card-embedded insurance. It provides coverage in the event of your death or dismemberment while on your trip.
#6 Trip Delay Insurance
This reimburses you for non-refundable expenses like food, drink, and lodgings if your trip is delayed for a covered reason. It may also reimburse you for missed flights or connections and losses related to hotel bookings.
#7 Rental Car Insurance Waiver
This policy allows you to waive the car rental company's in-house car theft, loss, and collision damage policy, potentially saving you hundreds of dollars if you rent a car for the duration of your trip. And if it’s a luxury car rental, even better.
#8 Non-medical Evacuation
This policy covers the cost of your evacuation in case of a natural disaster or a terrorist attack.
#9 Cancel For Any Reason Insurance
While normal trip cancellation insurance comes with a set of acceptable or covered reasons to get the reimbursement, this policy reimburses you for non-refundable trip expenses if you need to cancel your trip for any reason.
Travel insurance policies embedded in credit cards typically have a per-trip limit on the amount of coverage they provide. This means that if the cost of your trip exceeds the limit, you will be responsible for paying the difference. Most of them also have a maximum benefit limit, which is the maximum amount of money that the policy will pay out for any one claim. There are also other limits that are commonly placed by credit card companies when they offer travel insurance. For example, your coverage may be limited to a certain number of days, exclude certain countries or regions, be subject to a deductible, and exclude certain types of activities.
Furthermore, your cancellation and interruption coverage, baggage lost or theft coverage, and personal liability coverage may be limited. Please keep all these things in mind when deciding on which credit card embedded with travel insurance you should choose. And, also be sure to read the terms and conditions of the embedded travel insurance policy carefully to understand the potential limits on coverage and eligibility.
Top Credit Cards Embedded with Travel Insurance for Luxury Travellers
Now that we know all the unforseen events they can cover, and the limits they usually come with, it is time to look at some of the best credit cards with embedded travel insurance.cre Keep in mind that most of these credit cards require a good credit score, which only 59% of Americans have.
The Platinum Card® from American Express
The Platinum Card® from American Express comes with a variety of travel insurance benefits that can protect you and your family while you're taking your luxury vacation. These benefits include trip cancellation and interruption, baggage, and travel accident insurance. Here are all the travel insurance benefits it provides (terms apply):
- Trip Cancellation and Interruption: You will be covered for up to $10,000 for trip cancellations or interruptions due to covered reasons such as sickness, weather, or other unforeseen events. The maximum benefit is capped at $20,000 in a 12-month period.
- Lost Luggage: This benefit provides coverage of up to $3,000 for lost, stolen or damaged baggage.
- Travel Accident Insurance: the Platinum Card provides up to $500,000 coverage for accidental death or dismemberment while traveling.
- Rental car: This benefit provides coverage for damage to your rental car. It can reimburse you for up to $75,000 per accident. However, no coverage is provided for vehicles rented in Australia, Italy, and New Zealand. Moreover, it provides only secondary coverage and does not include liability coverage.
Chase Sapphire Reserve®
Like the Platinum Card®, the Chase Sapphire Reserve® card offers a number of travel insurance benefits, including trip cancellation/trip interruption insurance, baggage delay insurance, and travel accident insurance to luxury travelers. Here are the travel insurance benefits provided by the Chase Sapphire Reserve® (terms apply):
- Trip Cancellation and Interruption: It provides up to $10,000 per person ($20,000 per trip) for covered expenses if your trip is canceled or interrupted for a covered reason. The maximum benefit is capped at $40,000 in a 12-month period.
- Baggage Delay: You will get $100 each day for up to five days if your baggage is delayed.
- Lost Luggage: If your luggage gets lost or stolen, this card offers coverage of up to $3,000 per person.
- Trip delay: Also called flight delay insurance, this will reimburse you for reasonable expenses incurred if your trip is delayed for more than 6 hours, up to $500 per person and $1,000 per trip.
- Travel Accident: This benefit provides up to $1,000,000 in coverage for accidental death or dismemberment while you're traveling.
- Rental car: The rental car insurance offered by the Chase Sapphire Reserve® card includes $75,000 in coverage. This insurance covers damage to the rental car, as well as any medical expenses incurred by the renter or any passengers in the car. The insurance also covers any personal belongings that are damaged or stolen from the rental car.
United Club℠ Infinite card
Luxury travelers can access many different types of travel insurance offered by the United Club℠ Infinite card. Though it doesn't include the medical and other certain expenses covered by the Chase Sapphire Reserve® card, it includes trip cancellation insurance, which covers the cost of your trip if you have to cancel for a covered reason.
Other types of travel insurance offered by the United Club℠ Infinite card include trip interruption insurance, which covers the cost of your trip if you have to interrupt it for a covered reason, and baggage insurance, which covers the cost of your lost or damaged baggage. The amount of coverage varies depending on the type of insurance, but the United Club℠ Infinite card offers anywhere from a few thousand to over $100,000 in travel insurance coverage (terms apply).
United℠ Explorer Card
The United Explorer Card is a travel rewards card issued by Chase. It gives benefits when used to book flights with United Airlines. It is marketed to United flyers who aren't regular enough to earn status. Benefits include free checked bags when used to book United flights. It also provides Priority Boarding, one-time United Club passes each year twice, and 25% savings on United in-flight purchases. Here's a breakdown of the travel insurance benefits offered by the United℠ Explorer Card (terms apply):
- Trip Cancellation and Interruption: This insurance will reimburse you for non-refundable trip expenses if your trip is canceled or interrupted for a covered reason, such as sickness or weather. Coverage is up to $1,500 per person and $6,000 per trip.
- Lost Luggage: If your baggage is lost, damaged, or stolen, this insurance will reimburse you for it. Coverage is up to $3,000 per passenger.
- Trip Delay Insurance: This insurance will reimburse you for reasonable expenses incurred if your trip is delayed for 12 hours or more. Coverage is up to $500 per person and $1,500 per trip.
- Baggage Delay: If your baggage gets delayed, this insurance will reimburse you $100 daily for up to three days.
- Travel Accident: Travel accident insurance provides up to $500,000 in coverage in case of an accident, dismemberment, or death.
- Rental car: There's also rental car insurance, which can save you money on your rental car if it's damaged or stolen or if it is broken into and your stuff gets stolen.
Hilton Honors American Express Aspire Card
If you're a Hilton Honors American Express Aspire Cardholder, you enjoy a number of travel insurance benefits that can help you feel confident and prepared when you go on a luxury trip. Here's a rundown of what you're covered for (terms apply):
- Trip Cancellation and Trip Interruption: If you need to cancel or interrupt your trip for a covered reason, you can be reimbursed for up to $10,000 per trip and up to $20,000 in a 12-month period.
- Lost Luggage: If your bags are lost, damaged, or stolen, you can claim reimbursement for up to $3,000 per person, which is restricted to $6,000 per trip.
- Travel Accident Insurance: If you're injured or, god forbid, killed while traveling, you and your family get coverage for up to $500,000.
- Baggage Delay: Nobody likes their luggage getting delayed, but if it does, you can claim compensation of $100 for three days per carrier.
- Rental car: If you rent a car on your luxury trip that gets damaged for any reason or your things get stolen, you can claim a reimbursement for up to $75,000.
The Bottom Line
Different travelers have different needs. That's why having told you about the top five credit card-embedded luxury travel insurance; we will leave the decision of selecting the best one to you. Regardless of which card you sign up for, remember one of the best reasons to get a credit card with travel insurance is for the peace of mind it can provide. If something goes wrong on your trip, whether it's a lost bag or an emergency medical situation, you'll be glad you have the coverage. However, when you plan your luxury trip and start looking for a credit card that offers travel insurance, you must compare different cards and their features to find the best option.