Whether you’re dreaming of a beach vacation, planning your honeymoon, or want to check countries off your bucket list, there’s one major hurdle: getting there with your luggage. Traveling carries risks like flight delays, lost luggage, or medical emergencies.
According to the U.S. Bureau of Transportation, more than 20% of flights are typically delayed, which means that on average, one in five flights is delayed. In 2022, some 26 million pieces of luggage were lost, delayed, or damaged. These numbers can be cause for worry.
Considering a credit card to maximize your travel? MoneyLion can help you find and compare credit cards for travel rewards:
Having the right travel insurance can provide peace of mind and financial protection if things go wrong on your trip. Fortunately, many credit cards offer built-in travel insurance as a perk for cardholders, saving you the cost of insurance on your next trip.
We’re exploring the 8 best credit cards with travel insurance coverage, including some no-annual fee options. Read on for the best options to protect your dream vacation this year!
Another way to get additional travel-related insurance is with the MoneyLion WOW membership. With MoneyLion WOW your purchases are protected with premium insurance3 covering cell phones, trip delays and cancellations, checked / carry-on baggage, rental cars, and event tickets.
8 Best credit cards offering travel insurance
Here is an overview of the best travel credit cards that include some form of travel insurance to protect you on your next adventure.
1. Best for Frequent Flyers: Chase Sapphire Reserve Card
The Chase Sapphire Reserve is a premium travel credit card that offers valuable benefits for frequent flyers. In addition to earning 3X points on travel and dining, cardholders enjoy a generous $300 annual travel credit, access to airport lounges, and robust travel insurance coverage.
Annual fee: $550
APR: 19.99%-26.99% variable
Credit score: Excellent
Pros
Excellent travel benefits
Flexible rewards program
Comprehensive coverage
Cons
The high annual fee may not be worth it for infrequent travelers
Types of Coverage | Coverage amount |
|---|---|
Trip delay | Up to $500 per ticket for delays of over 6 hours or requiring an overnight stay. |
Trip cancellation | Trip cancellation/interruption: Up to $10,000 per covered trip. |
Baggage delay | Up to $100 per day for 5 days for delays over 6 hours. |
Lost luggage | Up to $3,000 per passenger. |
Travel accident | Up to $1 million for accidental death or dismemberment. |
Rental car insurance | Primary coverage for collision/theft. |
2. Best for No Annual Fee: Wells Fargo Active Cash Card
The Wells Fargo Active Cash Card stands out with premium features and is a straightforward cash-back credit card that offers travel insurance coverage despite having no annual fee. You can earn 2% cashback on everything, one of the most generous flat reward options out there. If you just want a straightforward cashback card with decent insurance and no annual fees, this is the top pick.
Annual fee: $0
APR: 20.24%, 25.24%, or 29.99% variable
Credit score: Excellent, Good
Pros
No annual fee
Simple 2% cashback rewards on all purchases
Cons
Travel coverage is more limited compared to premium travel cards
Types of Coverage | Coverage amount |
|---|---|
Trip cancellation | Up to $1,500 per covered trip |
Lost luggage | Up to $1,000 per covered trip |
Travel accident | Up to $250,000 for accidental death or dismemberment |
Rental car insurance | Secondary coverage for collision/theft |
3. Best for Lounge Access: Capital One Venture X Rewards Credit Card
The Capital One Venture X Rewards credit card is a premium travel card that offers excellent lounge access benefits, in addition to generous travel insurance coverage. The card also provides a $300 annual travel credit and access to over 1,300 lounges worldwide through a Priority Pass Select membership.
However, there are a few significant limitations to the Venture X card’s travel protections. First, it only reimburses transportation costs if a trip needs to be canceled for covered reasons. Second, it doesn’t cover all prepaid expenses, like hotels and rental cars, up to the maximum limit of the coverage. Instead, you’ll need to meet a limited list of eligible reasons for trip cancellation and interruption. Also, there’s no baggage delay insurance.
Annual fee: $395
APR: 19.99%, 26.24% or 29.99% variable
Credit score: Excellent
Pros
Lounge access
Full auto insurance for theft or collision
Generous travel credits
Flexible rewards program
Cons
Travel coverage is limited compared to other options.
The high annual fee may not be justified for infrequent travelers.
Types of Coverage | Coverage amount |
|---|---|
Trip delay | Up to $500 for expenses incurred when delayed for six or more hours or overnight. |
Trip cancellation | Up to $2,000 per person for nonrefundable tickets. |
Trip interruption | Up to $2,000 per person for nonrefundable tickets. |
Lost luggage | Up to $3,000 reimbursement per trip. |
Travel accident | Up to $1 million for accidental death or dismemberment. |
Rental car insurance | Primary coverage of up to the actual cash value of the rental car to a maximum of $75,000 for theft or collision damages. |
4. Best for Luxury Perks: The Platinum Card from American Express
The Platinum Card from American Express is a premium travel card that offers a wide range of luxury perks and travel benefits, making it a top choice for frequent travelers seeking an elevated experience. Get up to $200 annual airline fee credit and up to $200 annual hotel credit. You’ll also get complimentary Marriott Bonvoy Gold Elite and Hilton Honors Gold status.
Note that with this AMEX card, for trip delay and trip cancellation or interruption insurance to be valid, your entire round trip must be paid for with the Platinum Card. You could book two one-way flights, a multi-stop, or a single roundtrip. There’s no baggage delay reimbursement or travel accident insurance.
Annual fee: $695
APR: 21.24% to 29.24% variable
Credit score: Good, Excellent
Pros
Lounge access at over 1,300 airport lounges worldwide through Priority Pass, as well as access to Amex Centurion Lounges
Full auto insurance for theft or collision
Cons
High annual fee
Travel coverage is limited compared to other options
Types of Coverage | Coverage amount |
|---|---|
Trip delay | Up to $500 for delays of more than six hours. |
Trip cancellation | Up to $10,000 in nonrefundable expenses are charged to the card per trip; a maximum of $20,000 per 12 months. |
Trip interruption | Up to $10,000 in nonrefundable expenses are charged to the card per trip; a maximum of $20,000 per 12 months. |
Baggage insurance | Coverage of up to $2,000 per checked baggage; a maximum of $3,000 for checked and carry-on baggage. |
Rental car insurance | Up to $75,000 of secondary coverage in the event of damage or theft, and $300,000 per incident for accidental death, injury, or dismemberment coverage related to a rental car accident. |
5. Best for International Budget Travelers: United Explorer Card
The United Explorer Card is a co-branded travel credit card that offers valuable benefits for frequent United Airlines flyers, including priority boarding, free checked bags, and travel insurance coverage. It’s an excellent option for budget-conscious international travelers seeking a card with robust travel protections. In addition to insurance and bonus signup miles, you could use miles to book on any of United’s partners potentially opening low-cost travel opportunities. In addition, it offers comparable insurance perks to some of the premium offerings on this list.
Annual fee: $95 (waived the first year)
APR: 21.99%–28.99% variable
Credit score: Good, Excellent
Pros
Free checked bags on United flights
Travel credits
Comprehensive travel insurance
Cons
Limited rewards earning potential outside of United purchases
Types of Coverage | Coverage amount |
|---|---|
Trip delay | Up to $500 per ticket for unreimbursed expenses such as meals and lodging. |
Trip cancellation | Up to $1,500 per person and $6,000 per trip for prepaid. |
Trip interruption | Up to $1,500 per person and $6,000 per trip for prepaid. |
Baggage delay | Reimbursement for essentials up to $100 per day for three days for baggage delayed by more than six hours. |
Lost luggage | Coverage of up to $3,000 per person. |
Rental car insurance | Primary coverage up to the actual cash value of the rental car for theft or collision damage. |
6. Best for Bonus Rewards: Bank of America Premium Rewards Credit Card
The Bank of America Premium Rewards credit card offers a generous rewards program and valuable travel protections, making it an excellent choice for those seeking bonus rewards on their everyday spending. You can earn 2 points per dollar on travel and dining earns. If you’re a Preferred Rewards client, you can get an extra 25%-75% cashback bonus.
Annual fee: $95
APR: 21.24% – 29.24% variable
Credit score: Good, Excellent
Pros
Excellent rewards rate
Travel credits
Built-in travel insurance
Cons
Limited bonus categories compared to some other rewards cards
Types of Coverage | Coverage amount |
|---|---|
Trip delay | Up to $500 per ticket purchased for delays of more than 12 hours. |
Trip cancellation | Up to $2,500 per person for nonrefundable passenger fares |
Trip interruption | Up to $2,500 per person for nonrefundable passenger fares |
Baggage delay | Up to $100 per day for essential items for up to five days. |
Lost luggage | Coverage for luggage and its contents if they are lost or stolen |
Travel accident | Emergency evacuation and transportation coverage for eligible medical services and transportation. |
Rental car insurance | Secondary coverage for damage due to collision or theft. |
7. Best for Simple Rewards Cards: Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card is a popular choice for those seeking a straightforward and valuable travel rewards card with built-in travel insurance coverage. With a low annual fee, the Chase Sapphire Preferred card offers versatile and valuable insurance options. You can redeem rewards for travel or transfer to other loyalty programs like United Airlines, Southwest Airlines, Marriott, and Hyatt.
Annual fee: $95
APR: 19.24% – 26.24% variable
Credit score: Good, Excellent
Pros
Excellent sign-up bonus
Flexible rewards program
Comprehensive travel insurance
Cons
Limited bonus categories for earning rewards
Types of Coverage | Coverage amount |
|---|---|
Trip delay | Up to $500 per ticket for delays of more than 12 hours. |
Trip cancellation | Up to $10,000 per person and $20,000 per trip. Maximum of $40,000 per 12-month period. |
Trip interruption | Up to $10,000 per person and $20,000 per trip. Maximum of $40,000 per 12-month period. |
Baggage delay | Up to $100 per day for five days. |
Lost luggage | Up to $3,000 per passenger. |
Travel accident | Up to $500,000. |
Rental car insurance | Up to the actual cash value of the car. |
8. Best for Southwest Flyers: Southwest Rapid Rewards Plus
The Southwest Rapid Rewards Plus credit card is an excellent choice for frequent Southwest Airlines flyers, offering valuable perks and travel insurance coverage. The credit card earns 2X points on Southwest purchases. As a cardholder, you’ll receive 3,000 anniversary bonus points each year and the ability to earn a companion pass after earning 135,000 qualifying points in a calendar year.
Annual fee: $69
APR: 21.49%–28.49% variable
Credit score: Good, Excellent
Pros
Earn Southwest Rapid Rewards points
Anniversary bonus points
Cons
Limited bonus categories for earning rewards outside of Southwest purchases
No trip delay or interruption coverage.
Types of Coverage | Coverage amount |
|---|---|
Baggage delay | Up to $100 per day for three days. |
Lost luggage | Up to $3,000 per passenger. |
Travel accident | Up to $250,000 (Visa Platinum) or $500,000 (Visa Signature) |
Rental car insurance | Up to the actual cash value of the vehicle. |
Travel and emergency assistance services | Assistance or referral via the Benefit Administrator, you’ll have to pay all costs. |
Understanding the 8 types of travel insurance coverage
Travel insurance offers a range of coverages designed to protect you from various mishaps and unforeseen circumstances that can occur during your trip. Having the right coverage can provide peace of mind and financial protection, ensuring that your travel plans are not derailed by unexpected events.
It’s important to carefully review the specific coverage details, limits, and exclusions of any travel insurance policy you’re considering to ensure it aligns with your travel needs and provides adequate protection. Here is an overview of the common types of travel protection.
1. Trip delay
This coverage reimburses you for additional expenses incurred due to a delayed trip, such as meals, accommodations, and transportation. It typically kicks in after a specified delay period, from six to 12 hours or more, depending on your policy.
2. Trip cancellation
If you need to cancel your trip for a covered reason, such as illness, injury, severe weather, natural disasters or other unexpected events, trip cancellation insurance can reimburse you for non-refundable, prepaid expenses like flights, hotels, and tours. Note that trip cancellation insurance doesn’t cover voluntary cancellations.
3. Trip interruption
Similar to trip cancellation, this coverage provides reimbursement if you need to cut your trip short due to covered reasons. It can cover the unused, non-refundable portion of your trip, as well as additional transportation costs to return home.
4. Baggage delay
When your checked baggage is delayed for a certain period, typically 6 hours or more, this coverage can provide reimbursement for essential purchases like clothing, toiletries, and other necessary items to tide you over until your luggage arrives. Good baggage delay coverage gives you $100 for up to five days.
5. Lost luggage
If your checked baggage is lost or damaged during the trip, this coverage can reimburse you for the cost of replacing lost or damaged items, up to a specified limit.
6. Travel accident
This coverage provides financial protection in the event of accidental death or dismemberment while traveling. It can provide a lump sum payment to you or your beneficiaries in case of such unfortunate incidents.
7. Rental car insurance
Many travel insurance policies include coverage for rental cars, providing primary or secondary coverage for collision damage or theft. This can save you money by eliminating the need to purchase additional insurance from rental car companies.
8. Emergency evacuation and transportation
In the event of a medical emergency, while traveling, this coverage can provide reimbursement for the costs associated with medical transportation and evacuation to the nearest appropriate medical facility or back to your home country.
Do you need additional travel insurance?
While credit card travel insurance can provide valuable coverage, it may not be sufficient for all situations. Consider purchasing additional travel insurance in cases of extended trips or additional medical needs, such as:
Extended trips or international travel: Credit card coverage may have limits on the length of trips or exclude certain destinations, so you may need additional insurance for longer or more complex trips.
High-risk activities: If you plan to participate in adventure sports or other high-risk activities, you will probably need specialized coverage not provided by credit card insurance.
Pre-existing medical conditions: Credit card insurance often excludes coverage for pre-existing medical conditions, so separate travel medical insurance can be necessary to protect your health when traveling beyond your primary health insurance coverage.
Final Tips for Securing Travel Insurance
Unforeseen events can quickly turn a dream vacation into a nightmare, but having the right travel insurance can provide invaluable financial protection and peace of mind. Many credit cards offer built-in travel insurance as a perk, making it easier to safeguard your trip without additional costs.
Carefully research the various types of coverage and compare to select the best credit card for your travel needs. For example, while premium travel cards offer impressive rewards, they’re rarely worth the cost for infrequent travelers. However, with some research and comparison, we’re confident there’s a card option for most travelers on this list.
Make sure to also learn about overseas coverage or the different types of credit cards. It’s also worthwhile checking out to build a rainy day fund. Need to know how much you need to save for your dream vacation? Check out MoneyLion’s savings calculator.
FAQs
Do all credit cards have travel insurance?
No, all credit cards do not have travel insurance. Travel insurance is typically a feature offered by premium travel credit cards or as a perk for certain cards.
Is free travel insurance with a credit card good?
Credit card travel insurance can provide valuable coverage, but it may have limitations or exclusions. It’s essential to review the specific coverage details and determine if it meets your needs for your trip, health, and planned activities.
What is the difference between credit card travel insurance and travel insurance?
Credit card travel insurance is a perk offered by some credit card issuers, providing limited coverage for various travel-related incidents. Traditional travel insurance, purchased separately, typically offers more comprehensive and customizable coverage options.
Is it better to get a single trip or annual travel insurance?
If you travel frequently, annual travel insurance may be more cost-effective and convenient than purchasing separate policies for each trip. However, for infrequent travelers or those with specific trip needs, single-trip insurance may be a better choice.
How much is enough travel insurance?
The appropriate amount of travel insurance coverage depends on factors like the cost of your trip, potential medical expenses, savings, and personal risk tolerance. Consider getting enough coverage to protect your non-refundable trip costs and for adequate medical and evacuation coverage.
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Disclosures
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, MoneyLion does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information. For more information about MoneyLion, please visit https://www.moneylion.com/terms-and-conditions/.
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