This is the first publication in our card travel insurance series for travel advisors. These publications provide a detailed perspective on every travel insurance component that is included on credit cards, and informs travel advisors about the most important aspects of the coverage.
Trip interruption insurance is one of the less understood elements, especially by travellers. So, let’s dive in!
What is trip interruption insurance?
Trip interruption insurance is a very important travel insurance piece. It protects travellers in case of an unexpected event that happens DURING the trip and, as a result, requires an unexpected trip interruption and a return home. Not every possible event is covered by this insurance, but it typically covers interruptions of a serious nature (death or sickness of an immediate family member, pregnancy complications, travel advisory, extraordinary weather conditions, etc.).
What aspects of trip interruption insurance are the most important?
Travel professionals must pay attention to the following three aspects of any trip interruption that comes with a credit card:
- Coverage per insured person. Typical values are $1,000, $2,500, $5,000 per insured person. When deciding if this coverage is enough, it is important to ensure that this amount covers aspects like reimbursement for an unused part of the vacation like hotel costs, cancellation costs/penalties, unplanned return tickets, etc.
- Aggregate amount per trip. Typical values are $5,000, $10,000, $25,000, and sometimes higher. This coverage is important for larger families, especially when travelling with children. The larger the family, the greater the financial loss from trip interruptions.
- Persons covered. In many cases, this includes a spouse and dependent children and, sometimes, a travel companion. It is important to understand who exactly is covered by this insurance, and if needed, complement it through additional insurance.
What are common exclusions related to trip interruption insurance?
This travel insurance comes with a number of exclusions where pre-existing medical conditions (such as a heart or lung condition) come into play. Also, situations where a traveller might have been aware of potential issues are excluded, as are issues caused by the traveller (failure to appear at the airport, complications of known medical issues, birth of a child during a trip, intentional self-inflicted injuries, etc.)
Which credit cards offer trip interruption insurance?
Most banks have at least a few credit cards that include this coverage. Typically, it can be found in the higher categories of cards that require an annual fee. That being said, trip interruption limits vary widely. Most no-fee credit cards do not offer it.
Here is a list of bank credit cards offering this coverage. More information about travel insurance coverage on nearly every major credit card can be found through our tool at TravelandCards.com
Please note that this information reflects the individual, not business, credit cards on offer as of June 28, 2021.
What if a credit card does not offer trip interruption insurance?
It is very important for travellers to have this type of coverage. We saw why during the pandemic when unexpected events drove high cancellations and trip interruptions.
Travel advisors can use our TravelAndCards tool to find out if their clients have trip interruption on their credit card, and if needed, offer additional coverage. This benefits both sides – travellers are well protected and have peace of mind, and travel advisors can differentiate their service by providing valuable advice while increasing their own travel insurance sales.
Contact us if you are interested in equipping your travel agency and your travel professionals with this unique tool.
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