By: Kathleen A. De Riso, Vice President, Travel Services, Crum & Forster
With many credit cards actively promoting their branded travel protection, it’s likely you’re encountering more customers these days who feel not purchasing standalone travel protection could be a savvy choice.
As a seasoned travel professional, you know the deal: credit card travel protection can work great in some cases, but it may have limitations. How should you approach this discussion and steer your customers in the right direction? Here are a few key points to highlight when discussing credit card travel protection versus third-party protection with your customers.
Decoding the fine print: Travel assistance vs. travel insurance
One of the most important things for your clients to check is whether their credit card provides a travel protection plan or just travel assistance. Many consumers may not be aware that these are not the same. Unlike travel insurance that typically covers a portion of the actual costs of services such as medical care, or emergency transport, up to a certain dollar limit, travel assistance simply connects or guides travelers to these services; usually, without financial coverage for them.
If a traveler needs medical attention while abroad and uses a travel assistance service, the helpline may direct them to a nearby doctor or hospital. However, the traveler may still be responsible for paying for those services out of pocket.
It’s also important to remind your customers that their US-based healthcare may not provide coverage overseas. Should your customer need medical treatment while traveling in Mexico, Brazil, parts of the Caribbean, and many other countries, they may be asked to pay upfront. If they’re unable to do so, they could be sent elsewhere—or not treated at all.
Key differences between credit card travel protection and standalone third party travel protection
One important difference between credit card travel protection and standalone third party protection is that standalone protection tends to offer coverage options for a wider range of travel-related risks.
Credit card travel protection can vary from one card to the next but typically offers lower coverage limits for events like trip cancellations or medical evacuations. For example, some cards—even premium ones—tend to cap cancellation coverage at $10,000 per person, per trip. This could pose a problem for higher-end clientele booking luxury travel experiences that often exceed the capped amount.
Standalone protection, in contrast, is typically priced based on the trip’s total cost—so it can provide more robust coverage for non-refundable expenses in cases of cancellations or interruptions. For example, third-party insurers commonly cover 100% or more of non-refundable costs for covered trip cancellation and interruption claims. In addition, they often include protections that some credit cards may not, such as extensive medical care, emergency evacuation, and flexibility for unique travel needs.
Along with these general differences, other points to discuss with your clients include:
1. Medical coverage limits
Credit card travel protection may not always include coverage for medical expenses, so it’s important for your clients to check their specific credit card’s benefits. For example, medical situations resulting from a pre-existing condition, medical emergency evacuations, and specialized care—such as dental, specialist consultations, or long-term treatment—are usually not covered. This means that treatment for common incidents such as a broken bone or a heart condition flare-up could result in out-of-pocket expenses for your customers.
2. Conditions for coverage
Credit cards typically require that you use their card to book your travel to activate their travel protection. For instance, to qualify for credit card collision damage protection with some credit card companies, you must pay for the rented vehicle in full with the card and decline the rental company’s collision damage waiver. And, at least one credit card company requires travelers to book their trips with a travel agency using their card to be eligible for medical evacuation coverage. Stand-alone travel protection, on the other hand, could provide more comprehensive coverage for your customers’ trip—whether paid by check or multiple credit cards for various travel segments — and will consider their planned activities, specific needs, and any medical conditions when providing quotes and structuring appropriate coverage.
3. Flexibility and personalization
Credit card travel protection is typically limited to the fixed benefits provided by the card. In contrast, stand-alone travel protection plans offer your customers more flexibility, allowing them to choose specific coverages, limits, and add-ons, such as “cancel for any reason” protection, or specific coverage for adventure sports-related injuries. This flexibility is particularly valuable for older travelers and those with pre-existing medical conditions as third-party insurers offer the opportunity to review individual needs and possibly obtain exclusion waivers.
Helping your customers make more informed travel protection choices
Overall, if a traveler is taking a low-risk trip with minimal non-refundable costs, credit card protection may be a good fit. But for those who want additional peace of mind—especially when dealing with expensive or international trips—a standalone plan is likely the more beneficial choice. A small investment could save your customers from thousands or tens of thousands of dollars in out-of-pocket costs and help get your client the services they need.
Always encourage your customers to carefully review the details of any travel protection benefits. Be sure to remind them that, while credit card protection offers convenience and some benefits, it may lack the more robust coverage and support that standalone travel protection could provide.
Armed with additional information your clients are in a better position to decide what’s best for their journey.
For Travel Advisor Use Only – Do Not Distribute
While we reviewed several credit cards for this article, our analysis is not comprehensive and reflects only our general findings.
About the Author
Kathleen A. De Riso is the Vice President of Travel Services at C&F where she enjoys creating custom travel insurance offerings to meet the unique needs of her clients. With a career spanning several decades in travel insurance, Kathleen has held prominent leadership roles in Underwriting, Operations, Account Management and Claims. Her experience has provided her with a holistic understanding of travel insurance —and what makes it function seamlessly for tour operators, Third Party Administrators, and travelers alike.
About Crum & Forster
Crum & Forster, rated “A” Excellent by AM Best (2024), is a national commercial property and casualty group of insurance companies. Since 2000, Crum & Forster’s Accident & Health Division has offered a diverse portfolio of specialty insurance and reinsurance products nationwide. We place a strong focus on product development and creative distribution methods, along with excellent client service and support. In addition, our ability to provide international Accident & Health solutions through our innovative captive structure as well as through various partnerships with affiliated entities demonstrates our dedication to providing alternative strategies in an ever-changing insurance market. Follow us on LinkedIn, X and Instagram. The C&F logo, C&F and Crum & Forster are registered trademarks of United States Fire Insurance Company.
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