Consumers using their credit card abroad and who then have some kind of financial problem may get help through their card's travel insurance. While not all credit card companies provide this type of insurance to their consumers, many do.
Those who need to use their card's travel insurance may find that coverage is quite limited, with only a few unforeseen expenses covered. This leaves many travelers still having to pay out of their own pockets. There are also several specific card user guidelines to follow in order for the issuer to provide compensation.
Exactly what is covered differs between the various card issuers and networks. Card users should always read the fine print or contact the issuer to learn exactly what their card's travel insurance includes. Many include some type of accident insurance, which covers the cardholder's family in the case of a fatal accident while traveling. This is not the same as medical insurance and does not cover any doctors' fees or hospital costs. It acts instead as a type of secondary life insurance.
The second most common things covered by credit card travel insurance are lost luggage and travel delays. Generally, the card issuer will pay to have clothing and other basic items replaced at no charge to the cardholder. The insurance will not usually cover expensive jewelry, electronics, or other high-dollar items.
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