Travel credit cards leave major insurance gaps, survey finds

A new Squaremouth survey of 4,700 travellers has highlighted significant gaps between what travellers think their travel credit cards cover and the protections they actually provide.

Although nine in 10 respondents said they were familiar with their card’s protections, 62% were unaware that pre-existing medical conditions are not always covered. The same proportion did not know that cards typically restrict trip cancellation claims to a limited list of reasons and often cap reimbursement below the trip’s full cost.

Other gaps were also widely misunderstood. More than half (55%) did not realise card protection generally applies only to purchases made with that card, while 48% were unaware that most travel cards provide little or no emergency medical coverage overseas.

The findings are particularly relevant for business and leisure travel where medical or cancellation costs can quickly exceed card limits. Squaremouth’s analysis found that only one travel credit card offers emergency medical coverage, capped at US$2,500 with a $50 deductible.

Airline and hotel co-branded cards were the most popular among respondents (30.2%), ahead of Chase Sapphire (23.8%), and American Express (20.7%), but generally offered the weakest travel protections.

“Treat your credit card as a supplement to travel insurance, not a full replacement,” said Chrissy Valdez, Senior Director of Operations at Squaremouth.

The company recommends travellers review card exclusions and limits before departure, and consider comprehensive travel insurance for international trips, pre-existing conditions, high-value trips or bookings paid with multiple cards, points or miles.