Credit Card Trip Insurance Benefit

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Feb 14, 2017
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#1
One of the benefits provided by my Chase Visa Freedom credit card is trip cancellation/interruption insurance coverage. Do you know whether this coverage offered by credit card companies is comparable to the insurance sold through tour operators and private companies? According to the credit card Guide to Benefits, the maximum reimbursement per covered trip is $5,000, which would cover the expenses of my next planned trip. It would save approximately $150-$200 per person if I did not have to purchase the insurance separately and instead relied on the credit card benefit.
 

Carrie Livingston

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#2
I would call them and ask what would be covered and also ask them what type of documentation they would need if you would need to file a claim. Make notes during your conversation and document the date and time. It will be helpful if you happen to need it in the future.
 
Likes: Neil Maley

Neil Maley

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#3
It usually isn't and may have hidden limitations you need to make sure you understand. Does it offer medical and emergency evacuation? If you are traveling outside the US most health insurance doesn't cover you outside the US.

Does it have flight delay and cancellation? How long is the flight delay - 6 hours, 12 hours, 24 hours? What is the cap on each piece of coverage? We had a client book a $15,000 cruise and tell us she was using her cc insurance. Luckily she sent the booklet she got from the cc company to my wife to check. In reading it my wife discovered the maximum payout for canceling the trip was $1500.
When she called the client the client had no idea and ended up buying a policy we sold. Good thing she did because her husband developed pneumonia and had to cancel the trip. If she hadn't bought the policy from us she would have lost over $13,000.

Here is some small print you need to delve info to see what is and isn't covered- there ARE limitations you need to find out before you go with it:

If your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $5,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.*


* These benefits are available when you use your card. Restrictions, limitations and exclusions apply. Most benefits are underwritten by unaffiliated insurance companies who are solely responsible for the administration and claims. There are specific time limits and documentation requirements. Please refer to your Guide to Benefits for a full explanation of coverages, or call the number on the back of your card for assistance.

I don't think it offers medical insurance either as it says it offers Travel Accident coverage which is accidental death and dismemberment, not medical coverage.

I suggest you get a full copy of what the card covers, and go to a website called insuremytrip.com and compare every detail to ensure what you think is covered actually is.
 

jsn55

Verified Member
Dec 26, 2014
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#4
I know what you're thinking, Den, but it's not that easy. Trip interruption would probably be fine with Chase (their insurance people are great, I've had a cancelled trip as well as rental car damage over the last several years), but cancellation may be more complex. First, make a list of all the monies you'd be out if you had to cancel the trip. Outline the exact details of the Chase coverage, then compare it to other straight-travel policies. Every single detail, all the fine print, you have to understand it all and decide which benefits you can live without vs the price. I found a travel insurance broker a few years ago before a European cruise and just told him what I wanted, he picked the policy. My mind turns to jello with topics like this. But now I have all that coverage through Chase Sapphire as well, so I have to do some work before our next trip.

I'm sending you a PC with more info.
 
Likes: Neil Maley
Feb 14, 2017
3
0
1
66
#5
It usually isn't and may have hidden limitations you need to make sure you understand. Does it offer medical and emergency evacuation? If you are traveling outside the US most health insurance doesn't cover you outside the US.

Does it have flight delay and cancellation? How long is the flight delay - 6 hours, 12 hours, 24 hours? What is the cap on each piece of coverage? We had a client book a $15,000 cruise and tell us she was using her cc insurance. Luckily she sent the booklet she got from the cc company to my wife to check. In reading it my wife discovered the maximum payout for canceling the trip was $1500.
When she called the client the client had no idea and ended up buying a policy we sold. Good thing she did because her husband developed pneumonia and had to cancel the trip. If she hadn't bought the policy from us she would have lost over $13,000.

Here is some small print you need to delve info to see what is and isn't covered- there ARE limitations you need to find out before you go with it:

If your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $5,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.*


* These benefits are available when you use your card. Restrictions, limitations and exclusions apply. Most benefits are underwritten by unaffiliated insurance companies who are solely responsible for the administration and claims. There are specific time limits and documentation requirements. Please refer to your Guide to Benefits for a full explanation of coverages, or call the number on the back of your card for assistance.

I don't think it offers medical insurance either as it says it offers Travel Accident coverage which is accidental death and dismemberment, not medical coverage.

I suggest you get a full copy of what the card covers, and go to a website called insuremytrip.com and compare every detail to ensure what you think is covered actually is.
Thanks for your reply, I will look into all your concerns on my cc benefits and decide if my benefits are adequate and then make a decision.
 
Feb 14, 2017
3
0
1
66
#6
I know what you're thinking, Den, but it's not that easy. Trip interruption would probably be fine with Chase (their insurance people are great, I've had a cancelled trip as well as rental car damage over the last several years), but cancellation may be more complex. First, make a list of all the monies you'd be out if you had to cancel the trip. Outline the exact details of the Chase coverage, then compare it to other straight-travel policies. Every single detail, all the fine print, you have to understand it all and decide which benefits you can live without vs the price. I found a travel insurance broker a few years ago before a European cruise and just told him what I wanted, he picked the policy. My mind turns to jello with topics like this. But now I have all that coverage through Chase Sapphire as well, so I have to do some work before our next trip.

I'm sending you a PC with more info.
Thanks for your reply. I usually purchase trip insurance for my trips but since this trip is fairly inexpensive and reimbursement would not go over the limit of the cc benefit I thought having the cc benefit as my insurance might save me some money. I will do the comparisons as you suggest.
 

Neil Maley

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Dec 27, 2014
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#7
Den everyone has an amount of risk they are willing to take if something goes wrong and the possibilities of losing everything you have paid for your trip. Some people can afford to lose a few hundred dollars and some can't.

We always buy insurance because my father in law is 87 and I'm not willing to lose anything if something happens with him and he can't travel. My step daughter bought a $400 plane ticket and purchased the airline coverage for $30. Her return flight was canceled due to weather and the insurance paid for her hotel for dinner night and meals . It's these things you need to take into considetation.

Thank you for posting this because it is wise to ask before you travel
Instead of assuming what you have and finding out later you didn't have enough coverage with your credit card. You are a wise Consumer.
 
Jun 19, 2017
16
20
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New York
#8
One correction: the Chase Visa Freedom covers a person for up to $5,000 per person, up to $10,000 per trip. This was verified by calling the customer service, on several different occasions.
 

jsn55

Verified Member
Dec 26, 2014
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San Francisco
#9
One correction: the Chase Visa Freedom covers a person for up to $5,000 per person, up to $10,000 per trip. This was verified by calling the customer service, on several different occasions.
While it's always a good idea to verify nearly everything to do with travel, reading all the information available is a far better practice than calling. You have no record of what the agent tells you on the phone; much better to have everything in writing ... especially when it involves insurance of any kind.
 
Jun 19, 2017
16
20
3
New York
#10
Good point jsn55, the following is from Chase Visa Freedom Signature Guide to benefits, page 27, I have attached the whole brochure, where it's easier to read:

What is the Trip Cancellation & Trip Interruption
Maximum Limit of Insurance per Occurrence?

If more than one person insured under the same Account suffers a
Covered Loss for the same Covered Trip, the Company will not pay
more than:
Benefit
Trip Cancellation
& Trip Interruption
Maximum Limit
of Insurance
Per Occurrence
Maximum Benefit
Amount per Twelve
(12) Month Period
Trip Cancellation
Ten Thousand
($10,000.00) Dollars
Twenty Thousand
($20,000.00) Dollars
Trip Interruption
Ten Thousand
($10,000.00) Dollars
Twenty Thousand
($20,000.00) Dollars
If a Covered Loss results in Benefit Amounts becoming payable, which
when totaled, exceed the applicable Trip Cancellation & Trip Interruption
Maximum Limit of Insurance per Occurrence, then the Trip Cancellation
& Trip Interruption Maximum Limit of Insurance per Occurrence will be
divided proportionally among the Insured Persons, based on each
applicable Benefit Amount.
 

Attachments

Neil Maley

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www.promalvacations.com
#11
That all doesn't mean much. You must have read the full policy to see exactly what is and isn't covered and if there are limitations.

As I said, my clients had a policy showing them amounts only tobresd in the fine print the maximum payout was $1500 if they canceled.

They were insured for illness and emergency evacuation, lost luggage etc. But if they canceled before they left for any reason, maximum payout was $1500.

My wife thinks it was a Chase credit card, So read the total policy.
 
Jun 19, 2017
16
20
3
New York
#12
That all doesn't mean much. You must have read the full policy to see exactly what is and isn't covered and if there are limitations.

As I said, my clients had a policy showing them amounts only tobresd in the fine print the maximum payout was $1500 if they canceled.

They were insured for illness and emergency evacuation, lost luggage etc. But if they canceled before they left for any reason, maximum payout was $1500.

My wife thinks it was a Chase credit card, So read the total policy.
If you are referring to my posting, see my second posting above with the actual written document confirming the $10,000 per trip.
Chase has different Visa cards. My Amazon prime Visa Signature card has also benefits, which differ from the Chase Freedom Signature. I have both brochures.
 
Likes: Neil Maley

Neil Maley

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Advocate
Dec 27, 2014
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www.promalvacations.com
#13
The link to the full policy is where you need to look for all the details, which you provided. For Trip Cancellation,from the policy you provided the link to I pulled out from the policy you provided - and this is where my clients had a problem. Their total was $1500 pp for cancellation. For a $13,000 trip, it is simply not enough. She ended up buying our third party insurance and two weeks before her trip, her husband developed pneumonia and couldn't travel. If she had just stuck with her credit card insurance, she would have lost $10,000. Since she bought the third party, she was fully reimbursed.

Your policy says two different thing - in what you posted above, it says $10,000 for cancellation. Inside the policy link you posted itsays this for trip cancellation. And it doesn't cover for per-exisiting conditions in the policy where it says "What isn't covered". . :
This is why you MUST read the entire policy, not just the cover pages.

What is Trip Cancellation insurance?
Trip Cancellation insurance reimburses you or your Immediate Family
Members for up to five thousand ($5,000.00) dollars for each
Covered Trip if a Covered Loss prevents you or your Immediate Family
Members from traveling on or before the departure date and results in
cancellation of the travel arrangements.
If any or all of the Covered Trip was paid for using redeemable
Rewards, the Company will reimburse the Insured Person for Rewards
used. The Company’s reimbursement shall equal the monetary value
of the redemption through the Common Carrier, Tour Operator, Travel
Agency, or Travel Supplier up to the Benefit Amount. If the monetary
value of the redemption does not appear on the Insured Person’s
itinerary or redemption confirmation issued by the Common Carrier,
 

jsn55

Verified Member
Dec 26, 2014
6,672
6,666
113
San Francisco
#14
If you are referring to my posting, see my second posting above with the actual written document confirming the $10,000 per trip.
Chase has different Visa cards. My Amazon prime Visa Signature card has also benefits, which differ from the Chase Freedom Signature. I have both brochures.
Good work, Reuven. What we've learned here is to 'caveat' all advice ... "Here's what Chase says ... " ... then add instructions to "go look it up yourself and READ it", stated much more politely of course. Last thing you need is someone using your advice with no personal research and coming back to you complaining that you gave them bad information!

My eyes glaze over when reading about insurance (and many other things) so I'm always happy to pay an insurance broker a small commission to provide me with what we need.
 
Jun 19, 2017
16
20
3
New York
#15
Good work, Reuven. What we've learned here is to 'caveat' all advice ... "Here's what Chase says ... " ... then add instructions to "go look it up yourself and READ it", stated much more politely of course. Last thing you need is someone using your advice with no personal research and coming back to you complaining that you gave them bad information!

My eyes glaze over when reading about insurance (and many other things) so I'm always happy to pay an insurance broker a small commission to provide me with what we need.
We always use Chase Freedom Visa Signature for at least some of the travel purchase to be covered. If our travel expense is over $10,000, we also purchase private travel insurance for the balance.
If it's below $10,000 we still buy a private policy for a minimal amount, say $100. That affords us coverage that Chase doesn't cover.
 
Likes: Neil Maley

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
12,772
12,753
113
New York
www.promalvacations.com
#16
We always use Chase Freedom Visa Signature for at least some of the travel purchase to be covered. If our travel expense is over $10,000, we also purchase private travel insurance for the balance.
If it's below $10,000 we still buy a private policy for a minimal amount, say $100. That affords us coverage that Chase doesn't cover.
And that is perfect. Unfortunately, 98% of the people that write to us for problems when they have to cancel or get hurt while traveling have neither.
 
Likes: Reuven