Top credit cards offer built-in travel insurance to protect their cardholders' investments for trips, but that coverage isn't always comprehensive. Leading travel insurance comparison site, Squaremouth, shares a travel insurance hack that can give travelers affordable and complete protection.
Stacking a third-party travel insurance policy on top of a credit card's built-in coverage can create a comprehensive policy.
Insuring the Remaining Trip Cost
Some credit cards include Trip Cancellation coverage - reimbursing customers for the cost of their trip if they are unable to go as planned. However, most credit cards that include this benefit only cover travel expenses purchased on that card, and limit the amount that can be reimbursed. More generous cards usually cap coverage at $10,000 per trip.
If a traveler's trip cost exceeds their card's maximum, or they have expenses purchased outside of that card, a third-party policy can cover the additional trip expenses. These policies reimburse 100% of all prepaid and non-refundable trip expenses, including airfare, hotel accommodations, cruises, tours, and excursions.
Adding Medical Coverage
Credit cards rarely include medical coverage. However, Squaremouth recommends at least $50,000 in Emergency Medical and $100,000 in Medical Evacuation for international travel, and higher amounts for cruises or travel to remote locations.
A third-party policy without the Trip Cancellation benefit can give travelers the medical coverage their card is lacking for a low premium. A search on squaremouth.com for two 50-year-olds taking a two-week trip shows medical policies with the recommended benefit amounts starting at $40.