Creating a comprehensive policy

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Travel insurance

According to US travel insurance comparison site Squaremouth, stacking a third-party travel insurance policy on top of a credit card's built-in coverage can create a comprehensive policy.

Squaremouth said that travel insurance offered by top credit cards is not always comprehensive and combining this with a third-party travel insurance policy can give travellers affordable and complete protection.

“Some credit cards include Trip Cancellation coverage – reimbursing customers for the cost of their trip if they are unable to go as planned,” stated Squaremouth. “However, most credit cards that include this benefit only cover travel expenses purchased on that card, and limit the amount that can be reimbursed. More generous cards usually cap coverage at US$10,000 per trip.”

Squaremouth went on to say that if a traveller’s trip cost exceeds their card's maximum, or they have expenses purchased outside of that card, a third-party policy can cover the additional trip expenses. “These policies reimburse 100 per cent of all prepaid and non-refundable trip expenses, including airfare, hotel accommodations, cruises, tours, and excursions,” it said.

According to Squaremouth, credit cards rarely include medical coverage. It said it recommends at least $50,000 in emergency medical and $100,000 in medical evacuation coverage for international travel, and higher amounts for cruises or travel to remote locations. It added that a third-party policy without the trip cancellation benefit can give travellers the medical coverage their card is lacking for a low premium.