Does credit card travel insurance provide enough financial protection for international trips? Both yes and no. It depends on what other insurance policies the person has and whether there are specific needs.
Most Swedish credit cards include travel insurance, which typically covers trip cancellation and may provide compensation for flight cancellations or delayed baggage upon arrival at the destination.
The insurance is automatically activated as long as the trip is paid for with the card. That’s why it’s a good idea to always pay for international trips with a credit card to get this extra financial protection.
No, the Travel Insurance is Only a Complement
Credit card travel insurance is often referred to as ”supplementary travel insurance” because it should only be used as a complement to the travel coverage included in all Swedish home insurance policies. This travel coverage, for example, can provide access to free medical care, assistance after an assault, or compensation for theft. Additionally, it may cover early repatriation to Sweden if a doctor deems it necessary.
Home insurance travel protection offers basic financial security, mainly covering costs incurred due to illness or accidents. Paying for a trip with a credit card adds an extra layer of protection, offering compensation in cases of delays, cancellations, or when the trip cannot be fully utilised.
No, If Travel Protection is Lacking
If you don’t have home insurance, you can buy a ’temporary home insurance’ policy that covers just your trip. This provides the same basic financial protection as standard home insurance but at a lower cost since it is only active for a limited period, typically 14-30 days.
Yes, the Cancellation Protection is Sufficient
Most credit card insurance includes cancellation coverage, meaning that travel costs can be reimbursed if the trip must be cancelled due to illness or injury. Some credit cards extend this coverage beyond international travel to include, for example, cabin rentals and similar accommodations within Sweden. Additionally, cancellation protection may cover pre-booked ski equipment and tickets for events.
With the card’s cancellation protection, there is no need to purchase additional insurance from travel agencies or event organisers to ensure a refund in case of illness.
No, Not for Specific Needs
Credit card travel insurance should not be considered complete financial protection in the following situations:
Travelling with Pets
If you’re bringing a pet, you may need separate pet travel insurance.This can allow the trip to be cancelled if the pet becomes ill or injured and a veterinarian advises against travel. Such policies may also include additional coverage to facilitate travel planning.
Engaging in High-Risk Activities
If you’re planning to do high-risk activities, check whether your insurance covers them. Many policies exclude activities like rock climbing, bungee jumping, and cave diving. If these activities are planned, an adventure sports insurance policy should be considered to ensure coverage in case of injury.
Always Check Duration and Coverage
For most people, home insurance travel coverage plus credit card insurance is enough. However, it is crucial to check the terms regarding:
- Duration of Coverage – Many travel insurance policies only cover trips up to 45 days. For longer trips, an extension may be needed. Home insurance coverage can often be extended by purchasing an add-on, but credit card travel insurance cannot be extended. Instead, choosing a credit card with a longer coverage period, some offer up to 120 days, may be necessary.
- Who is Covered – Family members registered at the same address are usually covered, but other relatives or travel companions may not be. If cancellation protection is needed for all travellers, it is important to verify the policy details in advance.
- Cancellation Coverage Limits – Cancellation protection from credit card insurance always has a maximum reimbursement limit per person and per travel group. For example, it may cover up to SEK 10,000 per person and SEK 40,000 per group. This cap might be reached for larger travel parties, making it advisable to split the cost across multiple cards.
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