Summary
Credit card travel insurance has restrictions that can cause problems and is not enough to cover travel expenses.
Credit card travel insurance alone is not enough and can cause problems. From restrictions on coverage, to the need to pay expenses and then be reimbursed, to blocking migration, these are some of the difficulties that are generally encountered only when support is needed.
According to data from the Central Bank, there are approximately 85 million credit card users in Brazil. The brands of these cards usually include, among the benefits, free travel insurance for the higher categories (gold, platinum, black, infinite and similar). However, you need to be careful: for most trips, credit card insurance is not sufficient and the traveler may realize this too late.
The alarm comes from specialist Hugo Reichenbach, director of operations and partner of Real Seguro Viagem, the first online travel insurance comparator in Brazil. He explains that, in the vast majority of cases, the value of travel insurance offered by credit card brands as a benefit doesn’t even cover the minimum required in countries that are among the most popular destinations. “In this case the traveler cannot even go through the migration sector,” he says.
On average, the value of credit card travel insurance is $15,000. In Europe, for example, the minimum required is 30 thousand euros. It is worth highlighting that travel insurance is mandatory for entry into the 29 European countries listed in the Schengen Treaty (on the movement of people on the continent), as well as Cuba, Venezuela, Ecuador and the Middle East (Afghanistan, United Arab Emirates , Iran, Israel, Jordan, Kuwait, Lebanon, Oman, Syria and Turkey). Australia and Ireland require insurance for exchange students.
Another problem, warns the expert, is that travel insurance coverage for credit cards is mostly refunded. In other words, the traveler pays for unexpected expenses (such as medical treatment) and is subsequently reimbursed. Not with insurance company plans: the costs are already covered directly by these companies.
“Often the traveler does not have the financial means to pay that expense and then be reimbursed, especially medical care costs, which are very high, especially in some countries, such as the United States. Furthermore, the reimbursement is bureaucratic: the insured must first contact the credit card company, which then contacts the insurance company”, underlines Reichenbach.
Then there is a detail that sometimes escapes the traveller’s attention: the advantage of credit card travel insurance is usually valid only if the purchase of the trip (ticket, package) is made with a credit card. “The person may think they are insured, but realize that they are not insured only when they need it and then realize that the activation of the benefit was conditional on this form of payment,” he highlights.
In any case, even if all these details are respected, there are limitations to coverage. Credit card insurance is less comprehensive than travel insurance, notes Reichenbach.
There are variations from flag to flag, but in general they do not solve two of the most recurring problems: lost luggage and flight cancellations. Expenses for medical care are also limited, generally limited to emergency care, with maximum amounts almost always lower than the real cost of such care.
In this scenario, the operations director of Real Seguro Viagem believes that credit card insurance should be understood as complementary to travel insurance. “Traditional travel insurance allows for customization, to cover specific aspects of each traveler and their trip. Credit card insurance, in addition to restrictions, is standardized,” compare.
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Source: Terra
Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.
