Best Credit Card Travel Insurance in Canada award seal

How do you put a value on something you hope to never use?

Insurance is one of those things we pay for grudgingly “just in case” we need it. Because in reality, it’s best if we don’t as we get dinged twice if do:

  • To initiate a claim, something unfortunate must have happened, and if that’s not enough…
  • After a claim is approved, chances are your insurance premium will increase.

A no-win situation.

Personal vs Group Insurance Coverage

You quietly pay for years for your health, auto, mortgage insurance coverage ‒ and then, as soon as you make a claim, your clean records get whacked and you end up paying more.

Personal insurance like auto and mortgage are the worst offenders. Any claim you make on your personal insurance coverage gets recorded and increases your “risk” of making another claim. How do insurance companies deal with this increased (perceived) risk? They increase your insurance premium.

With group insurance coverage, your claims are not evaluated on their own but as a group ‒ in other words, your claims record is lumped with a bunch of others. The bigger the “group” you belong to (your employer, for example), the lower the overall risk becomes because it’s carried by the group as a whole. Example: if you make a significant dental claim using your group dental insurance, chances are your insurance premium will remain constant. Any impact on your insurance premium isn’t as significant because it’s distributed within the group.

Credit Card Insurance

Then there’s credit card insurance ‒ the ultimate group insurance offered by credit card networks and issuers at no added cost to you. Unlike your personal and your typical group insurance coverage, there is no “insurance premium” per se to worry about ‒ although this extra feature is taken into account in the card’s annual fee.

Top Credit Card Insurance Packages In Canada

Plus a $150 travel bonus.
Offer ends December 21, 2018.

Types of Credit Card Insurance

Not many people realize that credit cards carry valuable insurance, and even less realize that there are actually 16 different types and you may even be carrying some of that insurance around in your wallet already.

Curious what they are?

  • Extended Warranty: Covers you above and beyond any warranty that is already on a product.
  • Purchase Protection: Covers your purchases in the event that any of them are lost, stolen, or damaged within a predetermined amount of time.
  • Price Protection: Will reimburse you in the event that you pay for something and it goes on sale within a certain amount of time.
  • Mobile Device: A fairly rare type of coverage that will cover you in the event that your mobile phone or tablet is lost, stolen, or damaged.
  • Travel Accident: Will give you or your family a lump sum in the event that you suffer dismemberment or loss of life while traveling on a common carrier.
  • Emergency Medical: Covers you if you are traveling and you need emergency medical attention, and will even cover you if you need to spend an extended amount of time at the hospital.
  • Trip Cancellation: This will cover you if your trip needs to be cancelled for a pre-approved list of medical reasons.
  • Trip Interruption: This will cover you if your trip needs to be cut short for a pre approved list of medical reasons.
  • Flight Delay: Covers you for certain expenses if your flight is delayed.
  • Baggage Delay: Covers you for certain expenses if your baggage is delayed.
  • Lost or Stolen Baggage: Covers you for expenses incurred if you need to replace your belongings in the event that your baggage is lost or stolen.
  • Personal Effects: One of the most rare types of insurance that covers you if your belongings are stolen at any point during your trip.
  • Hotel Burglary: Covers you if your belongings are stolen out of your hotel or motel room.
  • Rental Car Theft & Damage: Covers you in the event that your rental car is stolen or damaged while you are using it.
  • Rental Car Accident: Will pay out a lump sum to you or your family in the event of dismemberment or death, while in a rental car.
  • Rental Car Personal Effects: Covers you if your belongings are stolen out of your rental car.

Check out our extensive blog post about these 16 types of insurance where we look at each type in detail.

Things to Remember

First things first, read the fine print:

As with most types of insurance, there are exceptions and limitations ‒ so read the insurance certificate that comes with your card to make sure you’re aware of everything you’re covered for (and everything you’re not).

Some of the most common things to watch out for:

  • Age Restrictions: When it comes to medical travel insurance, many credit cards only cover you if you’re under the age of 65. There are very few cards that keep you covered if you’re over the age of 65, and they are often higher end, premium cards.
  • Reward Redemptions: Travel insurance, unfortunately, often doesn’t cover you if you’re booking your trip with your rewards. Be sure to read the fine print, because you may want to purchase some extra travel insurance to cover you if that’s the case.
  • Reporting incidents: If you need to make a claim, you will need to be sure to file that within a certain set amount of time. Although it’s often up to 30 days, you’ll want to check your policy to make sure.

The creditcardGenius algorithm calculates an estimated dollar value for all rewards and bonuses by using a typical point value a person can realistically achieve by redeeming their rewards in a reasonably optimized way. The "Welcome Bonus" is the dollar value obtained by combining of all one-time bonuses available to new cardholders within the first year. To qualify for the full bonus you may need to make purchases, meet minimum spending requirements, or complete special actions. Terms and conditions apply.

Featured In

The Globe and Mail
thestar.com
Huddle.today
Morningstar