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Travel accident insurance

Some credit cards also offer travel accident insurance that kicks in to cover events like loss of a limb, hearing, speech or vision or even a death during a covered trip. The limits for this coverage vary significantly across cards that offer it, and cardholders have to pay for travel with a common carrier for this protection to apply.

Baggage delay insurance

Credit card baggage delay insurance works the same as if you purchased this coverage directly from a travel insurance provider. This insurance can reimburse you for essential purchases when your bags are delayed by a minimum amount of time – usually 6 or 12 hours. 

Essential purchases can include toiletries, clothing and charging cords for your electronic devices.

Lost or damaged luggage reimbursement

This coverage protects your bags if they’re lost or stolen while in the care of a common carrier. Some coverage also provides reimbursement if your bags are damaged while in transit.

While credit card policies vary, many plans cover checked or carry-on luggage for up to $3,000 per person.

Trip delay insurance

Trip delay insurance covers incidental expenses that occur when a trip is delayed for a certain length of time, usually six hours or longer. This coverage is typically offered on a per-traveler basis and covers unexpected hotel stays, unplanned airport meals and other surprise expenses that occur while waiting to depart.

How to submit a travel insurance claim

Before you submit a travel insurance or protection claim, take a look at what your cardholder benefits are and what’s covered. You may find this in your cardholder agreement or by calling your issuer.

Once you know what’s covered (and what’s not), you’re ready to submit a claim by phone or online. During major holidays, phone calls may have long wait times. You may be able to submit a claim online through your credit card issuer’s website or app. Or you may opt for a callback if that’s an option.

Keep a record of any proof that your flight was delayed or canceled, such as an email or text message. Also, hold on to receipts you paid during the wait, such as for food or a hotel stay. If your luggage or other items are lost, file a claim with the airport and keep a copy. Your issuer may ask for proof when submitting the claim by phone or online.

Should you choose a card based on the insurance it offers?

While credit card insurance can be valuable, it shouldn’t be the sole driver for opening a new credit product. You should compare credit cards based on their credit score requirements, rewards, fees, APRs and other cardholder benefits.

Credit card insurance can be nice to have, but it won’t always replace the need for purchasing a separate insurance policy – particularly since card insurance plan limits tend to be on the low end.

Travel insurance from credit cards rarely covers emergency medical expenses and may not take care of the total financial losses you experience when missing or canceling a trip. This is particularly important for people traveling overseas. If you want to have travel insurance with higher limits and more types of coverage overall, you’ll be better off buying a comprehensive travel insurance plan instead.

What are shopping protections?

Purchase protections that work similarly to travel insurance. For these coverages to apply, you have to pay for an item or bill with your credit card. These benefits can still come in handy when you’re traveling.

Purchase protection

Purchase protection is a type of coverage that protects new purchases against damage or theft within a certain number of days after you make the purchase, usually up to 90 or 120 days. 

If you buy a new laptop and it stops working within a few weeks later, for example, you can file a purchase protection claim as long as you paid for the laptop with a credit card that offers this coverage.

Extended warranty protection

Some credit cards also offer extended warranty protection on eligible purchases that already come with a manufacturer’s warranty. This type of coverage can also include limits for each occurrence and each account.

Cell phone protection

Some cards also come with built-in cell phone protection, but this coverage only applies when you pay your regular phone bill with the card. You might also have a deductible and coverage limits.

Return protection

Finally, some credit cards also offer guaranteed returns or “return protection.” This coverage provides reimbursement for eligible purchases when a store will not take an item back within a few months of the purchase date.

Time limits apply to this coverage, and there are limits on how much you can get reimbursed for. For example, you might get reimbursement protection with some cards for up to 90 days with a maximum benefit of up to $300 per item and up to $1,000 per account.

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