What does credit card travel insurance cover, and what exclusions matter most?
December 18, 2025
Read the full article to learn more about the best travel credit cards and how their insurance benefits can protect your next trip.
You planned the trip of a lifetime months ago, but you end up getting sick and hospitalized right before you’re due to fly to your destination. Or, you arrive at your vacation spot, but your luggage is nowhere to be found. Before you write your adventure off as a financial loss or go into panic mode, think about how you paid for your trip. If you used your credit card, your luck may soon improve.
Travel insurance can protect your wallet should an unpleasant and unforeseen situation occur during your trip, such as lost luggage, a delayed flight, or an injury. Typically, your policy will reimburse you for expenses you incur due to a covered event up to a predetermined limit. The insurance may also include coordination services, such as help arranging medical treatment after a travel accident.
Some adventurers purchase a separate travel insurance policy before their excursion. However, your credit card may offer some protections for no additional cost—provided you use your credit card to book and pay for your journey.
While policies will vary by card, here’s what is commonly included in credit card travel insurance coverage:
The situation: You need to cancel your trip or end it early due to a covered event, such as illness, severe weather, or a court subpoena you can’t postpone.
The solution: You can get reimbursed for the flights and reservations you didn’t use up to your policy limit.
The situation: Your flight is extremely delayed or canceled, leaving you stranded at the airport for hours or even days.
The solution: You can get reimbursed for covered costs incurred due to the delay or cancellation, such as a hotel stay or a restaurant meal.
The situation: You declined the rental company’s collision damage waiver (CDW) and got into an accident in your rental car or the vehicle got stolen.
The solution: You can file a claim to cover the repair or replacement cost of the car.
The situation: You make it to your destination on time, but your checked luggage doesn’t.
The solution: You can receive reimbursement for essential items, like clothing and toiletries, while you wait for your bags to arrive. If you never get your luggage back, you can receive reimbursement for the replacement value of the bag and its contents.
The situation: You or your spouse, domestic partner, or dependent child get into an accident while traveling that results in death, loss of eyesight, or loss of a limb(s).
The solution: You can receive a cash payout up to the limit defined in the policy.
A general note about credit card travel insurance: Each insurance policy has its own coverage eligibility criteria, limits, and exclusions. For instance, car rental insurance typically doesn’t include liability coverage. Review your card’s terms and conditions before booking your trip and opting out of other insurance.
So, from an insurance standpoint, what makes a great travel credit card? It's a combination of comprehensive coverage and a reasonable annual fee. Here are four of the best options for travelers on the market currently:
Annual fee: $95
Rewards: Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
Welcome bonus: Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
Travel insurance highlights:
Trip cancellation and interruption: Up to $10,000 per covered traveler and up to $20,000 per trip to cover prepaid non-refundable eligible travel expenses
Auto rental: Up to $60,000 reimbursement for theft or collision of a rental vehicle with an MSRP of $125,000 or less
Baggage delay: Up to $100 per day for up to five days to reimburse you for replacing essentials like clothing if your luggage gets delayed for more than six hours
Annual fee: $795
Rewards: Earn 8x points on all purchases through Chase Travel℠, including The Edit℠ and 4x points on flights and hotels booked direct. Plus, earn 3x points on dining worldwide & 1x points on all other purchases.
Welcome bonus: Earn 125,000 bonus points after you spend $6,000 on purchases in the first 3 months from account opening.
Travel insurance highlights:
Trip cancellation and interruption: Up to $10,000 per covered traveler and up to $20,000 per trip to cover prepaid non-refundable eligible travel expenses
Trip delay: Up to $500 per covered traveler if the trip is delayed by more than six hours or requires an overnight stay
Lost luggage reimbursement: Up to $3,000 per covered traveler to repair or replace lost, damaged, or stolen baggage
Baggage delay: Up to $100 per day for up to five days to reimburse you for replacing essentials like clothing if your luggage gets delayed for more than six hours
Auto rental: Up to $75,000 reimbursement for theft or collision of most domestic and international rental vehicles
Travel accident: Up to $1,000,000 in accidental death and dismemberment (AD&D) coverage
Emergency evacuation and transportation: Up to $100,000 to cover transportation and medical care if you’re more than 100 miles from home and require emergency medical evacuation
Emergency medical and dental: Up to $2,500 to cover medical expenses if a covered traveler gets sick or injured more than 100 miles from home
Roadside assistance: Up to $50 worth of help covering tows, battery problems, tire changes, lock issues, and gas replenishment (maximum four times per year)
Annual fee: $895
Rewards: Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings. You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.
Welcome bonus: You may be eligible for as high as 175,000 Membership Rewards® points after you spend $12,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
Travel insurance highlights:
Car rental loss and damage: Up to $75,000 in coverage if your rental car is damaged or stolen in a covered territory
Trip cancellation and interruption: Up to $10,000 reimbursement per trip and up to $20,000 reimbursement per eligible card in a 12 consecutive month period
Trip delay: Up to $500 per trip if the trip is delayed by more than six hours or requires an overnight stay (maximum of two claims in a 12 consecutive month period)
Annual fee: $395
Rewards: Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel. Earn 5X miles on flights booked through Capital One Travel, and unlimited 2X miles on all other purchases.
Welcome bonus: Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
Travel insurance highlights:
Auto rental collision damage waiver: Up to $75,000 in coverage if your rental car is damaged or stolen
Trip cancellation and interruption: Up to $2,000 per insured person for non-refundable tickets
Trip delay: Up to $500 for each purchased ticket if your delay is longer than six hours or involves an overnight stay
Travel accident: Up to $1,000,000 in coverage if a covered traveler dies or loses their eyesight, hearing, or powers of speech
Lost luggage: Up to $3,000 reimbursement if your baggage is lost due to theft or carrier misdirection
>>> Planning holiday travel? Many of these cards also excel as Christmas credit cards, offering both travel insurance and rewards on holiday spending. Learn more about maximizing rewards during the busy season.
Your travel insurance needs are unique and based on factors such as your risk tolerance, financial standing, and overall health. We spoke with R.J. Weiss, certified financial planner (CFP®) and founder of The Ways to Wealth, to get professional insight from a seasoned traveler.
Weiss said, “While the specifics depend on the credit card, most credit card travel insurance is relatively basic and offers more limited coverage compared to policies from dedicated travel insurance providers. That said, this level of coverage is often enough for many people. For me, it’s why I typically don’t purchase separate travel insurance and instead make sure to use the right credit card—my Chase Sapphire Reserve®—when traveling.”
“I always like to think of insurance, regardless of the type, as a way to protect against worst-case scenarios. So, if you’re in a financial situation where you can handle a worst-case scenario, I wouldn’t necessarily purchase additional insurance. If not having travel insurance—or if what the credit card provider offers isn’t enough—has the potential to cause significant financial harm, I’d look into alternative coverage,” continued Weiss.
Credit cards don’t automatically have travel insurance. Some cards include this benefit, while others do not. Review your card’s benefits guide and terms and conditions to see what coverage you may have.
The credit card with the best travel benefits depends on your needs, preferences, and budget. For instance, the Chase Sapphire Reserve® offers more robust protection than the Chase Sapphire Preferred®, but its annual fee is more than five times higher.
“You don't necessarily need to activate travel insurance on your credit card, but it depends on the specific card. Generally, you do need to use the card to book at least part of your travel for the insurance to apply. Coverage limits might be capped based on how much you spend on the card for the travel you purchased,” said Weiss.
Editorial disclosure: The credit card offers and information presented on this page are current as of the published date. However, credit card terms, including APRs, fees, and promotional offers, are subject to change without notice. Some offers listed may no longer be available or may have expired. Please refer to the issuer's website for the most up-to-date terms and conditions.
This content is not provided by the issuers. Any opinions expressed are those of BestMoney alone, and have not been reviewed, approved or otherwise endorsed by the issuers.
Laura has been a freelance writer since 2018. Her work primarily focuses on managing your money, navigating your career, and running a successful business. Her words have been featured in U.S. News & World Report, Fortune Recommends, The New York Post, USA Today, and many other publications.
