Credit card with travel insurance: what's really covered

These insurances may be included

Gold and premium credit cards in particular bundle several travel insurances into one package. Exactly which ones are included varies greatly by card — it's always worth checking the terms.

• Foreign travel health insurance: often the most important benefit
• Trip cancellation insurance: reimburses cancellation costs due to illness or accident
• Trip interruption insurance: for cutting a trip short
• Rental car comprehensive cover (CDW): reduces the excess
• Baggage insurance and flight delay protection

The key condition: the payment clause

Many credit card insurances only apply if you paid for the trip, or a defined share of it, with that exact card. With some cards the cover applies automatically, regardless of payment. Check carefully before booking which variant your card has.

What else to watch out for

Included insurance is handy but often comes with restrictions:

• Maximum trip duration: often only trips up to 90 days are covered
• Age limits: restrictions sometimes apply to people over 65
• Excess: may apply per claim
• Family cover: accompanying relatives are not always included

Is a card with insurance worth it?

Those who travel several times a year often save the price of a separate policy with a free card that includes foreign health cover. For just one trip a year or long stays, a standalone annual travel insurance can be the better, gap-free solution.