Credit Card Insurance: What Insurance Do I Get With My Card?

Did you know that your credit card is more than just a tool for everyday purchases? Many Americans rely on credit cards for convenience, but few realize the many insurance benefits that come with them. From travel insurance and purchase protection to rental car coverage, your credit card insurance may offer more than you think.

In this article, we'll explore the insurance options available through credit cards in the USA, especially for those who are frequently on the go. Whether you're renting a car for a weekend getaway or booking an international trip, your credit card insurance could provide essential coverage.

How does credit card rental car insurance work? Which is the best credit card for travel insurance? We’ll answer these questions and more, so you can make the most of your card's perks. Curious about what your card covers? Use our free tool to instantly discover all the protections and insurance your card offers!

What does Credit Card Insurance cover?

If you have a credit card, you might be surprised by the extra protection it offers, especially when it comes to insurance. Many credit cards in the U.S. come with built-in insurance coverage that can protect you in various situations, from travel mishaps to damaged purchases to medical emergencies. Here’s a quick rundown of what you could be covered for:

• Credit Card Rental Car Insurance: If your rental car gets damaged or stolen, your credit card might cover the expenses.
• Credit Card Travel Insurance: This includes coverage for trip cancellation, trip interruption, baggage delay, lost luggage, travel accident insurance, and sometimes emergency medical evacuation.
• Purchase Protection: This benefit helps reimburse you for the cost of items bought with your credit card if they are stolen or accidentally damaged, typically within 90 days of the purchase date.
• Extended Warranty: This benefit extends the original manufacturer's warranty, often by an additional year, providing extra coverage for repairs or replacements on eligible items purchased with your credit card.

Standard VS Premium Credit Card Insurance

The coverage provided by your credit card varies based on the card's tier. Standard credit cards generally offer more basic protections, while premium cards come with more extensive coverage and higher limits. Below is a comparison of the main coverages typically available:

Benefit	Standard Credit Card Insurance	Premium Credit Card Insurance
Credit Card Rental Car Insurance	Secondary coverage, typically up to $50,000 (Example: Costco Credit Card Rental Car Insurance)	Primary coverage, typically up to $75,000 (Example: Chase Sapphire Rental Car Insurance)
Trip Cancellation Insurance (Credit Card Travel Insurance Benefit)	Up to $5,000 (Example: Costco credit card trip cancellation insurance)	Up to $20,000 (Example: Chase credit card travel insurance)
Trip Delay Insurance	Up to $500 per trip after a 12-hour delay	Up to $1,000 per trip after a 6-hour delay
Trip Interruption Insurance	Up to $5,000 per trip	Up to $10,000 per trip
Travel Accident Insurance	Up to $100,000	Up to $1,000,000 (Example: Capital One credit card travel insurance)
Medical Evacuation Insurance	Typically not covered; if offered from $10,000 to $25,000	Often up to $100,000 to $500,000
Extended Warranty	Extends original warranty by up to 1 year	Extends original warranty by up to 2 years
Purchase Protection	Up to $1,000 per claim, $50,000 per year	Up to $10,000 per claim, $50,000 to $100,000 per year
Baggage Delay Insurance	Up to $100 per day	Up to $500 per day

Let's take a look at these coverages in detail.

What does Credit Card Rental Car Insurance cover?

Credit card rental car insurance, often referred to as Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), is a valuable benefit offered by many credit cards. It provides coverage for damage or theft of a rental vehicle when you use your card to pay for the rental. To maximize this benefit, it's important to understand the specific coverage details and any limitations associated with your card.

Here is a table on the benefits of credit card rental car insurance.

Coverage Type	Description
Collision Damage Waiver	Covers your rental car against theft and collisions. This coverage is active for the first 31 days of your rental.
Valid Loss-of-Use Charges	Reimburses charges imposed by the rental company for loss of use of the vehicle during repairs.
Administrative Fees	Covers fees imposed by the rental car company related to the accident or damage.
Towing Charges	Covers reasonable and customary towing charges to the nearest qualified repair facility due to covered theft or damage.
Deductibles under Other Policies	Covers deductibles from other insurance policies when renting a car in the United States.

Credit card car rental insurance comes with certain limitations. It does not cover the following:

• Personal Injury: Medical expenses for you or your passengers.
• Liability: Damage or injury to other vehicles, property, or people.
• Personal Belongings: Theft or damage to personal items inside the rental car.
• Exotic Vehicles: Some policies exclude high-end or specialty cars, trucks, motorcycles, and certain SUVs.
• Extended Rentals: Rentals longer than the period specified in the policy, usually 15 to 31 days.

How does Credit Card Travel Insurance work?

Credit card travel insurance is a benefit offered by many credit cards that provides coverage for various travel-related incidents. This type of insurance can protect you financially if your trip is disrupted due to covered reasons, such as illness, injury, or severe weather. Depending on the card, it might also cover things like lost luggage, trip delays, or emergency medical expenses while you're traveling.

Here’s a quick breakdown of what credit card travel insurance typically covers:

Benefits	Description
Trip Cancellation Insurance	It allows reimbursement of prepaid, non-refundable travel expenses paid with the card if you need to cancel your trip for covered reasons. Also known as travel cancellation insurance, it does not include event tickets such as museum tickets or golf course booking. This coverage is activated in the following situations occurring before your trip, fully paid with your card or points/miles: You or your travel companion experience an accidental injury, death, or illness that prevents travel. A change in military orders for you or your spouse. Severe weather that makes it unsafe to start or continue a trip. This includes weather at the trip’s starting point before departure and along the travel route before departure. Significant property damage such as water damage, burglary, fire, etc., occurring at your home. Travel warning issued by the U.S. government near your home or destination.
Emergency Medical Insurance	This coverage reimburses you for emergency medical or dental treatment if you become sick or are accidentally injured while on a covered trip.
Baggage Delay Insurance	This benefit provides reimbursement for the emergency purchase of essential items, such as toiletries, clothing, and chargers for electronic devices (limit one per device), when your baggage is delayed. It applies if your baggage is delayed for more than 6 hours.
Baggage Loss Insurance	This benefit provides reimbursement if your luggage is lost, stolen, or damaged during a trip with a public carrier.
Travel Accident Insurance	This benefit offers protection and assistance in case of accidents occurring during trips booked with your card for the cardholder and their family (spouse, children, etc.). It covers: Medical Expenses: Covers medical costs if you or your family are injured during a trip. Emergency Medical Assistance: Provides help in medical emergencies while traveling. Compensation for Death or Disability: Offers financial compensation in case of death or disability due to an accident during your trip. Reimbursement of Interrupted Travel Expenses: Covers costs if your trip is cut short unexpectedly. Help with Lost Documents: Assists you in case important travel documents are lost. Baggage Protection: Protects your luggage against loss, theft, or damage. Public Transportation and Rental Cars: Coverage applies whether you’re traveling by public transportation (trains, buses, taxis) or using a rental car.
Trip Interruption Insurance	Trip Interruption Insurance covers the costs if your trip is unexpectedly cut short due to specific, covered reasons. Here's what it typically covers: Non-Refundable Trip Costs: Reimbursement for unused portions of prepaid travel expenses, such as flights, hotel stays, and tours. Unexpected Events: Unforeseen circumstances like serious illness, injury, or death of you or an immediate family member, severe weather, or a natural disaster that affects your travel plans. Transportation Costs : If you need to return home earlier than planned, the insurance may cover the cost of a one-way ticket to get you back home.
Trip Delay Insurance	This coverage provides protection in the event of a delay of more than {transport_delay_num_hours_min} hours in the arrival or departure of your scheduled flight with a commercial airline. It covers the following costs incurred due to the delay: Meal expenses Accommodation Transfer costs including transfers to and from the airport or train station Ticket modifications for connecting tickets affected by the delay
Medical Evacuation Insurance	Medical evacuation insurance, also called the emergency evacuation and transportation benefit, covers the costs of emergency evacuation and transportation if you get injured or fall seriously ill while traveling and need to be evacuated for medical reasons.
Repatriation of remains	If you die during your trip, this benefit reimburses expenses to return your body/remains to your home country.

How do Purchase Protection & Extended Warranty work?

Purchase Protection

Purchase protection on credit cards offers coverage for new items purchased with the card that are damaged, stolen, or lost within a specified period, typically 90 to 120 days from the purchase date. If something happens to your item, you can file a claim with your credit card issuer to get reimbursed for the cost of the item or repair it, up to the coverage limit. Top cards like the American Express Platinum Card offer up to $30,000 in purchase protection.

Key Points:

• Coverage period: Typically 90-120 days.
• Covered incidents: Theft, damage, or loss.
• Reimbursement: Up to a certain limit per item and per year, as specified by the card.

Purchase protection generally does not cover items that are lost, stolen, or damaged due to negligence, normal wear and tear, or misuse. Items stolen from unattended vehicles or those not in the immediate possession of the cardholder may also be excluded.

Extended Warranty

Extended warranty on credit cards extends the manufacturer’s warranty on eligible items purchased with the card, typically by one additional year. This benefit kicks in after the original warranty expires, covering repair or replacement costs for manufacturing defects.

Key Points:

• Extension: Adds 1 year to the manufacturer's warranty.
• Eligibility: Covers items with manufacturer warranties of usually 3 years or less.
• Reimbursement: Up to a certain limit per item, as specified by the card.

What is the Best Credit Card for Travel Insurance?

The Chase Sapphire Reserve is widely considered one of the best credit cards for travel insurance in the USA. It offers extensive travel protections with high coverage limits, making it ideal for frequent travelers. Here are the key features of the Chase credit card travel insurance:

• Trip Cancellation/Interruption Insurance: Up to $20,000 per trip.
• Emergency Medical and Dental Coverage: Up to $2,500 for emergency medical situations.
• Travel Accident Insurance: Up to $1,000,000 for accidental death or dismemberment.
• Emergency Evacuation and Transportation: Up to $100,000.
• Baggage Delay Insurance: Up to $3,000 for lost luggage.
• Trip Delay Reimbursement: Up to $500 per ticket for delays of more than 6 hours.

Comparison of the best credit card with travel insurance

Feature	Chase Sapphire Reserve	Citi AAdvantage Executive World Elite	US Bank Altitude Reserve Visa Infinite
Trip Cancellation Insurance	$20,000 per trip	$5,000 per trip	$2,000 per trip
Travel Accident Insurance	$1,000,000	Not available	$500,000
Emergency Medical Coverage	$2,500	Not available	Not available
Emergency Evacuation	$100,000	Not available	$10,000
Baggage Loss Insurance	$3,000	$10,000	$3,000
Trip Delay Reimbursement	$500 (6+ hours)	$500 (6+ hours)	$500 (6+ hours)
Car Rental Insurance	$75,000	$75,000	$75,000

What is the Best Credit Card for Car Rental Insurance?

The Chase Sapphire Reserve is considered one of the best credit cards for rental car insurance in the USA. Chase credit card rental car insurance covers damages or theft without involving your personal insurance, up to $75,000. This makes it an excellent choice for both domestic and international rentals.

Best Credit Cards for Car Rental Insurance

Chase Sapphire Reserve

• Coverage: Up to $75,000 (primary coverage).
• Annual Fee: $550.
• Benefits: The Chase credit card rental car insurance includes primary coverage for damage or theft, plus trip cancellation and travel accident insurance.

Capital One Venture X Rewards

• Coverage: Up to $75,000 (primary coverage).
• Annual Fee: $395.
• Benefits: The Capital One credit card rental car insurance includes primary coverage, complimentary Hertz President’s Circle status, and premium travel perks.

Ink Business Preferred Credit Card

• Coverage: Up to $75,000 (primary for business use, secondary for personal use in the U.S.).
• Annual Fee: $95.
• Benefits: Excellent for business travelers, with 3x points on travel and other business expenses.

Can you pay car insurance with a credit card?

Yes, you can usually pay car insurance with a credit card. Most insurance companies accept credit card payments for premiums, allowing you to manage payments more conveniently and potentially earn rewards or cashback. However, some insurers may charge a convenience fee for credit card payments, so it's a good idea to check with your provider first.

However, there are a few things to consider:

1. Convenience Fees: Some insurance companies may charge a small fee for credit card payments, which could offset the rewards you earn.
2. Payment Flexibility: Paying with a credit card can provide more flexibility, especially if you prefer to pay in full or set up automatic payments to avoid missed due dates.
3. Interest Charges: If you don’t pay your credit card balance in full each month, interest charges on the balance could outweigh any rewards or convenience gained from using the card.

It’s a good idea to check with your insurance provider to confirm if they accept credit card payments and whether any fees apply.

Can you get free travel insurance with a credit card?

Yes, you can get free travel insurance with certain credit cards. Many premium credit cards, such as the Chase Sapphire Reserve and Citi AAdvantage Executive World Elite, offer travel insurance benefits at no additional cost when you book your travel using the card. Coverage often includes trip cancellation, trip interruption, and emergency medical services.

For example, the Chase Sapphire Reserve offers up to $20,000 in trip cancellation insurance and up to $100,000 in emergency medical transportation coverage.

How does credit card insurance work?

How to use your Credit Card Insurance?

To activate and use your credit card insurance, you should:

1. Verify Your Credit Card Coverage: Before traveling, ensure your trip is covered by your card's insurance by reviewing your benefits or using an online tool.
2. Keep Payment Proofs: Retain copies of receipts and statements showing that travel expenses were paid with your credit card.
3. Contact the Insurer in Case of a Claim: If you encounter an issue during your trip (e.g., cancellation, medical emergency, lost baggage), contact the insurer immediately using the contact details in your card's benefits guide.
4. Follow Instructions: The insurer will guide you through the necessary steps, including required documents and claim forms.
5. Submit a Claim: File your claim with all required documents within the specified timeframe (usually 30 to 90 days following the incident).

How to file a credit card insurance claim?

1. Contact Your Credit Card Issuer: Reach out to your credit card issuer as soon as possible after the incident. Most issuers require you to report the loss or damage within a specific timeframe, often within 30 to 60 days.
2. Provide Necessary Documentation: Gather necessary documentation, including the original receipt, the credit card statement showing the purchase, and any police or incident report in case of theft or loss.
3. Submit a Claim: Complete the claim form provided by the issuer and submit it along with the required documentation. This can often be done online, by mail, or via fax.
4. Follow Up: Stay in touch with your credit card issuer to ensure your claim is processed promptly. Keep copies of all documentation and follow up with the issuer if you do not receive a response within the expected timeframe.

How do I know if I am insured by my credit card?

Generally, you will be covered by your credit card insurance if you use that specific card when paying for goods, services, or travel arrangements included in the policy.

However, the actual coverage and its limitations will depend on your credit card. You should speak to a sales representative at the bank where you obtained your credit card or review the terms and conditions provided when you signed up.

These documents will detail all legal aspects of coverage, and maximum limits, identify where deductibles or co-payments apply, and provide contact details for support and claims.

American residents can quickly compare and review their credit card coverage using HelloSafe’s tool at the top of this page.

Where am I covered with my credit card insurance?

The geographical coverage of your credit card insurance will be limited to the specific type of protection and the credit card itself.

Normally, credit card travel insurance will extend coverage globally as long as the destination of choice is not subject to economic sanctions. Coverage will not be available when traveling to a country that is in a state of civil war, political instability, or suffering from natural disasters. Credit card holders should therefore ensure to check their government’s travel advice and recommendations.

If in doubt, use the comparison tool at the top of this page to select your bank and card to get a full breakdown of your credit card insurance's geographical coverage.

Do I need additional insurance?

You might have to purchase additional insurance if the benefits afforded by your credit card coverage fail to meet your needs.

As previously mentioned, the limits of your credit card insurance will be the deciding factor as to whether or not you need additional insurance. So knowing exactly what your coverage consists of is paramount. You can use our free HelloCard tool to instantly find out all the coverage included in your credit card.

How to cancel credit card insurance?

To cancel credit card insurance, follow these steps:

1. Contact the Provider: Call the customer service number of the insurance provider or your credit card issuer, which can usually be found on your billing statement or the back of your credit card.
2. Request Cancellation: Inform the representative that you want to cancel the insurance policy associated with your credit card. They may ask for specific details or verification of your identity.
3. Confirm Cancellation: Ask for a confirmation of the cancellation, preferably in writing or via email. Also, check your next billing statement to ensure no further charges are applied.

If there are any applicable refunds or fees, be sure to inquire about those during the process.

FAQs on Credit Card Insurance

Which credit card covers rental car insurance?

Yes, several credit cards cover rental car insurance. For example, the Chase Sapphire Reserve, Capital One Venture X, and Citi AAdvantage Executive World Elite all offer coverage up to $75,000 for theft or damage to rental cars, with specific terms and conditions​. Use our free tool to explore multiple cards and find out the best credit card with car rental insurance.

Does Capital One credit card cover rental car insurance?

Yes, Capital One credit cards, like the Venture X Rewards, provide rental car insurance coverage. This includes up to $75,000 for damages caused by theft or collision, valid loss-of-use charges, administrative fees, and reasonable towing costs.

Does Chase credit card cover rental car insurance?

Yes, Chase credit cards, such as the Chase Sapphire Reserve, provide rental car insurance coverage. This coverage includes up to $75,000 for theft or damage to rental cars when you pay for the rental with the card and decline the rental agency's insurance.

Which credit card has travel insurance?

Several credit cards offer rental car insurance. For example, the Chase Sapphire Reserve and Citi AAdvantage Executive World Elite provide comprehensive travel insurance covering trip cancellations and interruptions, along with rental car insurance up to $75,000 for theft or damage. These benefits are automatically activated when you use the card to book travel or rent a car.

How do I know if my credit card covers rental car insurance?

To know if your credit card covers rental car insurance, check your card's benefits guide or visit the issuer's website. Look for terms like "Auto Rental Collision Damage Waiver" or "Rental Car Insurance" under travel benefits. You can also call your card's customer service for specific details. You could also use our free tool at the top of this page to find out all the benefits of your credit card.

Why is credit card protection insurance unnecessary?

Credit card protection insurance is often unnecessary because federal laws, like the Fair Credit Billing Act, limit your liability for unauthorized charges to $50, and most credit card companies offer zero-liability policies. Additionally, many cards include built-in protections for fraud and purchase security, making extra insurance redundant.

Which credit card covers rental car insurance in Italy?

Credit cards like the Chase Sapphire Reserve, Capital One Venture X Rewards, and Citi AAdvantage Executive World Elite cover rental car insurance in Italy. These cards provide primary coverage for damage or theft when you pay for the rental with the card and decline the rental agency’s insurance.

Can I get pet insurance on my credit card?

There is typically no pet insurance credit card coverage offered as a built-in benefit. However, some cards offer purchase protection and extended warranties that could apply to pet-related purchases, like expensive pet equipment. Additionally, some credit cards provide rewards or cashback on pet-related spending, which can help offset the costs of pet insurance premiums if you pay for it using the card.

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