Travelers Waste Money on This Product They Can Get Free

Woman traveler
Photo by kgarinKhun / Shutterstock.com

Folks are spending more money on travel insurance — and some of them may be wasting every penny.

AAA reports that its domestic and international travel insurance sales increased 13 percent last year compared with 2016 — and have increased 20 percent so far this year.

But that is often a waste of money. Many folks already have travel insurance — for free — thanks to their credit cards. So, anyone who buys this type of insurance without first checking whether their credit card already offers it as a perk could be throwing away that cash.

Similarly, anyone who travels often but doesn’t have free travel insurance through a credit card may find it worthwhile to look for a new credit card that offers the perk.

The best credit cards for travel insurance

WalletHub recently analyzed 64 credit cards that offer the perk of travel insurance. The site reports:

“Credit card travel insurance can reimburse cardholders in the event of cancelled trips, missed connections, lost or delayed luggage, or even death. But coverage amounts and restrictions vary widely based on the type of card you have, the company that issues it and the card network it’s affiliated with.”

WalletHub rated the 64 cards based on three main factors:

  • Travel accident insurance
  • Luggage insurance
  • Eligibility cost and extra coverage

The credit cards that earned the highest overall ratings are:

  • Chase Sapphire Preferred: 92.9 percent
  • Chase Sapphire Reserve: 87.5 percent
  • Citi ThankYou Premier Card: 85.2 percent

Is travel insurance right for you?

Of course, there’s no point in opening a new credit card for travel insurance — or any other benefit — if you don’t need the benefit.

As we report in “14 Insurance Products That Are a Waste of Money,” travel insurance is a waste of money in some situations. They include when:

  • Your policy is riddled with exclusions.
  • You choose a policy that doesn’t cover the risks you are likely to encounter.
  • You buy coverage for risks you aren’t likely to encounter.
  • You only stand to lose the cost of the airline ticket cancellation fee.

To learn more about whether travel insurance is right for you, check out “Ask Stacy: Should I Buy Travel Insurance?

If you’re ready to buy travel insurance, see “Here’s How to Get a Travel Insurance Policy That Makes Sense.”

What’s your take on travel insurance? Share your thoughts below or on Facebook.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
14 Products That Keep Foods Fresh Longer
14 Products That Keep Foods Fresh Longer

We’ve rounded up innovative Amazon purchases to lengthen the life of your favorite foods and beverages.

Stop Overpaying for These 10 Common Purchases
Stop Overpaying for These 10 Common Purchases

The best price for many of these items is “free.”

15 Great Amazon Finds You Can Buy for Less Than $5
15 Great Amazon Finds You Can Buy for Less Than $5

These products offer big value at a small price.

7 Things You Should Buy at Estate Sales
7 Things You Should Buy at Estate Sales

Here’s what an experienced estate sale shopper considers a great find.

Beware These 5 Common Work-From-Home Scams
Beware These 5 Common Work-From-Home Scams

You can spot scammers and con artists with a little know-how.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
Will I Get My Ex-Husband’s Social Security When He Dies?
Will I Get My Ex-Husband’s Social Security When He Dies?

Two factors determine how much money is coming to you.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

21 Things You Should Always Buy at a Dollar Store
21 Things You Should Always Buy at a Dollar Store

Dollar stores have great bargains on these familiar purchases.

5 Household Disinfectants That Can Destroy the Coronavirus
5 Household Disinfectants That Can Destroy the Coronavirus

You likely already have some of these products at home.

6 Reasons I Will Never Trust Suze Orman
6 Reasons I Will Never Trust Suze Orman

Beware: The self-proclaimed personal finance expert has a track record that suggests more sizzle than steak.

20 Things That Are Actually Worth Stockpiling
20 Things That Are Actually Worth Stockpiling

You probably don’t need a year’s supply of toilet paper to survive an outbreak, but consider stocking up on these items.

America’s Most Reliable Appliance Brand Is a Surprise
America’s Most Reliable Appliance Brand Is a Surprise

Have you heard of this appliance manufacturer?

This Type of Social Security Benefit Is Often Overlooked
This Type of Social Security Benefit Is Often Overlooked

The Social Security Administration is not helping certain people get money to which they are entitled, a report says.

Getting These 2 Shots Could Reduce Your Risk of Dementia
Getting These 2 Shots Could Reduce Your Risk of Dementia

These vaccines may lower the risk of Alzheimer’s disease by up to 40%.

16 Amazon Purchases That We Are Loving Right Now
16 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

9 Everyday Problems You Can Solve With Vaseline
9 Everyday Problems You Can Solve With Vaseline

Forget expensive specialty products. Good ol’ petroleum jelly can address many common annoyances.

10 Deep Discounts Available on Amazon This Friday
10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

19 Purchases That Buyers Almost Always Regret
19 Purchases That Buyers Almost Always Regret

Think twice before buying these things.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

7 Tips for Building an Emergency Stockpile
7 Tips for Building an Emergency Stockpile

A pandemic or natural disaster could leave you reliant on your existing food supply. Is your pantry prepared?

8 of the Worst Things to Buy at a Dollar Store
8 of the Worst Things to Buy at a Dollar Store

Not everything sold at dollar stores is a great bargain or a safe purchase. Here’s our list of products to avoid.

8 Things That Are Free in August
8 Things That Are Free in August

As summer enters the home stretch, we’ve rounded up these sizzling freebies.

41 Things You Should Never Buy
41 Things You Should Never Buy

Some purchases are just plain dumb. Give yourself — and your budget — a break. Don’t spend money on this stuff.

Homeowners Say These 2 Kitchen Appliance Brands Are Best
Homeowners Say These 2 Kitchen Appliance Brands Are Best

One brand takes five of the top honors, while another ranks highest in three categories.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.