How Does Credit Card Travel Accident Insurance Work?
Though credit cards often come with a negative connotation due to the accumulation of debt and interest charges, they also sometimes come with a few key benefits. Some credit card companies offer forms of travel-related accident insurance. A card holder should be aware of the basics of how this card benefit works, as it can come in handy.
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Rental Insurance
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If you have an incident while driving a rental car, you may be entitled to coverage from the credit card company. In most cases you have to use the credit card for the reservation in order to access these travel accident benefits. If you have another insurance policy, the credit card related accident insurance is secondary, meaning that it covers the leftover balance related to the incident after the primary insurer pays.
General Travel Insurance
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Some credit card companies also cover you if you have an accident or incident while traveling on vacation or business. For instance, if you get on a plane and the airline loses your luggage by accident, the credit card may reimburse you for your valuables. Also, some credit cards provide coverage for injuries or even death related to a trip.
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How Does It Work?
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In order to take advantage of travel-related accident benefits, you must call the credit card company to report the incident. One of the first questions the card company representative is likely to ask is whether you've taken advantage of coverage offered by other providers, such as the airline, hotel, rental car company or your own insurance company. Only after that coverage is exhausted are you eligible for benefits from the card company. Next, you must provide police reports and other proof of your claim. Upon claim approval, the credit card company then issues a check.
Considerations
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It is wise to check with your credit card company before assuming that you're covered with either of these accident insurance policies. Some credit card companies frequently change their rewards and benefits programs as well as the credit card agreement. So before you leave for a trip, give the credit card company a call to verify you still have coverage as well as the maximum claim levels.
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