The best type of insurance is the one you don’t ever use. Travel insurance is basically like any other type of insurance, something we pay for, happy to not use and a little annoyed when do. Did you know you may have travel insurance coverage already in your wallet? That’s because some credit cards come with travel insurance as a benefit. Here’s the skinny on credit card travel insurance, when you’d use it, typical coverage policies and some of the best travel credit cards that carry it.

Travel Accident Insurance

Travel Accident insurance from your credit card covers the primary cardholder and authorized users, such as a spouse or domestic partner, or even dependent children (under 24), depending on the card. This insurance pays a benefit if a covered person is killed or injured in a common carrier accident while traveling or during a vacation. An injury may include loss of a limb, sight, speech or hearing.

This is the form of travel insurance I hope no one ever has to claim, but if you used a credit card to purchase your travel, it’s likely you have some coverage. In the event of some tragedy, having this insurance will provide a benefit.

What is the typical coverage policy? $100,000 for personal credit cards (business credit card will often cover more, up to $500,000)

What are some of the best travel credit cards that offer this travel insurance coverage?
Lost Luggage & Delayed Luggage Protection

If your checked or carry-on luggage is permanently lost, stolen or damaged by the common carrier, having this benefit may refund the purchase price of the missing items or the cost to repair the damaged items. If your checked baggage is delayed on a trip, this benefit may reimburse the cost of necessary items until your baggage arrives. Don’t forget you can get your checked bag fees waived with credit cards too.

Let’s say you’re traveling to the French Alps for a ski vacation. You decide to take your own skis and check them at the airport assuming they are arriving at your destination for your vacation. Your luggage is sent to Tokyo, not on your flight to Geneva, and it will take another 2 days to arrive at your destination. This is now three days of skiing you would have missed. Having the right credit card will reimburse the cost of your ski rentals for these three days. If you packed your ski pants and ski jacket in the same bag as your skis, using the right credit card to book your travel, can cover the expense of replacing these items up to the amount designated by your policy coverage.

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