Depending on your credit card (Classic - Premium) and bank you might benefit from various warranties in regard to the mishaps and uncertainties that can happen while travelling. In general, a classic credit card covers the bare minimum such as a travel accident insurance resulting in death or disability. Only with a premium credit card you can benefit from more warranties such as :
- cancellation insurance,
- protection of your luggage,
- repatriation, etc.
However, often specific criteria and limits are attached to the coverages imposed by the bank, that must be met in order to benefit from the insurance.
There are a few things to consider:
- General conditions of your credit card’s insurance; especially the exclusions and special conditions, in regard to cancellation insurance in order to verify that the covered motives fit your needs.
- Conditions related to the payment : most of the credit cards have the criteria that you have to pay with this specific card or at least for some percentage in order to benefit from the insurance
- If only the cardholder is insured or also family members. Be aware that if you travel with a friend or partner with whom you do not have an official ties, this person is generally not included in the insurance.
- The time limit : most cards will cover you for a travel duration of max 90 consecutive days, hence if you are going on a longer trip you might not be fully covered.
- The different financial limits for each coverage: the given amount might not be sufficient for certain destinations (for example: hospital stay, medical costs, ..).
In general, a travel insurance offers a broad range of different covers that can be adapted and concluded independently to respond to your needs. Such as:
- Travel assistance: this coverage includes repatriation, medical costs, the return trip to your home in Luxembourg and sending medicine.
- Cancellation insurance: benefit from cancellation coverage in the event of: illness, redundancy, promotion, separation or divorce.
- Luggage insurance: not only your bags but also your cameras or sports equipment are covered worldwide.
- Accident insurance: coverage which guarantees the payment of a capital sum in the event of invalidity or death.
- Vehicle assistance: breakdown, courtesy car or replacement driver.
Furthermore, a travel insurance can be concluded for a specific time frame or even annually, making sure that you are covered adequately.
| CREDIT CARD | TRAVEL INSURANCE | |
|---|---|---|
| Coverage | General coverages that cannot be changed and apply equally to every cardholder | Coverages can be tailored to your needs and adapted to the duration and nature of your holiday |
| Complementary guarantees | No possibility to add complementary warranties | Possibility to add complementary warranties |
| Period insured | Limitation of 90 consecutive days | Short term and annual coverages are available |
| Insured persons | Only applies to credit cardholder and/or family members | Applies to all insured persons in the contract |
| Payment | Full or specific percentage of the holiday has to be paid by the card | The source of payment does not play any role |
| Fees | Recurring fees as a premium card cardholder | Pay per holiday or annually depending on your travel habits |
| Subscription date | With the acquisition of the card by respecting the conditions to benefit from the insurance | When booking the trip and/or before leaving on vacation |
This comparison is based on the most common conditions on the Luxembourg market.
With a classic credit card the coverage is very basic, however with a premium card one can benefit from a wider range of warranties. Nonetheless, it is worth checking the previously mentioned points with your bank in order to make sure that you will not encounter a surprise when a claim happens.
A travel insurance can help to complement the already existing coverages of your credit card. By carefully checking the terms and conditions one can also avoid being insured twice for the same warranty while other coverages are forgotten. In case you do not want to pay a recurring fee to own such a credit card, a travel insurance is a good alternative. Either way, you will be at an ease of mind and the only thing left is to enjoy your holiday to the fullest !
Text originally published in June 2022, updated in June 2024.
Travel : the tailor-made travel insurance. With Travel, you are single-handedly in control and you can design you own travel insurance policy by opting for one or more of these 4 components:
- Personal assistance.
- Vehicle assistance.
- Cancellation insurance.
- Luggage and accident insurance.