Credit Cards with Travel Insurance: Are You Actually Covered?

Many credit cards in Canada promote built-in travel insurance. The promise sounds good: pay with your card and you’re covered for emergencies abroad. But the reality is more complicated. If you rely only on your card’s coverage, you risk gaps that cost you thousands.

Types of Coverage Offered

Most premium credit cards include at least some of these protections:

• Emergency medical insurance (often capped at $1–5 million)

• Trip interruption or cancellation coverage

• Lost or delayed baggage protection

• Flight delay or accident insurance

• Rental car collision damage waiver

Entry-level cards usually offer less. Some don’t include medical coverage at all.

Common Restrictions You Might Miss

Travel insurance from credit cards comes with strict conditions. The fine print matters. Here are key limitations:

• Age caps: Many policies exclude travellers over 65.

• Trip length: Coverage usually ends after 15–31 days. Long trips need separate insurance.

• Pre-existing conditions: If you have health issues, you may not be covered without a stability period.

• Payment requirement: To activate coverage, you often must charge the full cost of the trip to the card.

• Family limits: Spouses and kids might be covered, but only if travelling with the primary cardholder.

Why Supplemental Insurance Still Matters

According to the Canadian Life and Health Insurance Association, medical costs abroad can reach $10,000 per day in the United States. Even a $5 million cap won’t help if a claim is denied for a technicality. Buying extra coverage ensures protection for longer trips, seniors, or people with medical histories.

How to Check If You’re Covered

1. Download your card’s insurance certificate from the bank website.

2. Look at trip duration, medical exclusions, and required conditions.

3. Compare your needs: trip length, age, health, and whether you’ll rent a car.

4. Call the insurer’s assistance line before you travel to confirm details.

Bottom Line

Credit card travel insurance is a useful perk. It saves money on short trips and covers many common risks. But don’t assume it replaces a full policy. Review your card’s limits, then decide if you need extra protection. A few minutes of checking can prevent major financial stress abroad.