Credit Card Travel Insurance Vs. Separate Travel Insurance (2024)

Before we look at the differences, let’s look at what the policies have in common.

First, travel insurance is meant to protect against sudden, unforeseen, or unexpected situations. This means that any personal pre-existing medical conditions aren’t covered unless your coverage includes a waiver or offers a pre-existing condition exclusion. Also, travelling for elective surgery or medical treatments of any kind is also not covered.

Secondly, all policies have time limits for when you can initiate a claim (plan on filing within 30 days of the incident, although in some cases you may have longer). You’ll then have additional time to compile and submit supporting documentation. Expect to share an elaborate paper trail detailing what happened and any related expenses you incurred. Receipts are non-negotiable.

Lastly, coverage is null and void anytime it’s a result of illegal activity. You may also be denied if the cause of the incident included alcohol or drugs. It’s important to read each insurer’s list of exclusions to be clear on what is and isn’t covered. As always, an ounce of prevention may be worth a pound of cure.

Credit cards tout travel benefits as a way to offer value in exchange for annual fees. Here, we’re comparing three popular cards that offer travel insurance: The TD®Aeroplan® Visa Infinite Privilege Card, the Scotiabank Gold American Express Card and the BMO Air Miles World Elite Mastercard.

With all of these cards, eligible non-refundable expenses, such as flights or hotel accommodations, must be charged to the credit card to be included in the coverage. You must also remain a cardmember at the time you file your claim and have an account in good standing. Immediate family members are covered, assuming you paid for their travel with your card. Keep an eye on age limits for children: This varies not only by card, but by benefit. All benefits cover children up to 18, but some benefits will cover older adult children if they’re still students.

TD® Aeroplan® Visa Infinite Privilege

The TD® Aeroplan® Visa Infinite Privilege is a top-of-the-line travel credit card that offers comprehensive trip insurance, making it ideal for frequent flyers seeking extensive additional rewards. The downside? The steep $599 annual fee.

This card offers up to $5 million in emergency medical coverage for the first 31 days of your trip if you are 64 years of age or under. (If you’re 65 years of age or older, coverage is for the first four consecutive days of your trip.) Benefits under this coverage include fees for hospital accommodation, physician’s services, lab tests and other diagnostics, ambulance transportation and emergency return home. There’s also specific provisions for private duty nursing (up to $5,000) accidental dental ($2,000 maximum), costs to bring a bedside companion to you if you’re hospitalized (round-trip air fare and up to $1,500 for meals and accommodation), and return of your travelling companion, vehicle and/or dependent children.

Another valuable included benefit isTrip Cancellation andTrip Interruption Insurance. This coverage reimburses you for nonrefundable, prepaid expenses you incurred if you unexpectedly have to cancel the trip or have to cut the trip short. You can be reimbursed up to $2,500 per traveller with a maximum of $5,000 per trip for a trip cancellation, and up to $5,000 per traveller with a maximum of $25,000 for all insured travellers for trip interruption. Some examples of covered reasons include hospitalization or death of an immediate family member or a court subpoena.

The last major coverage this card includes isAccidental Death & Dismemberment insurance. This insurance pays out a lump sum if you lose your sight, speech, hearing, a limb, or life while travelling. The coverage maxes out at a generous $500,000.

All travellers have experienced trip delays at one point or another, for example when thunderstorms cancel your flight or your airplane has mechanical issues. With the TD® Aeroplan® Visa Infinite Privilege card, you can be reimbursed up to $1,000 if you’re delayed four hours or more for eligible causes (most commonly severe weather or mechanical issues). It will cover costs such as hotel rooms, taxis and meals.

The card also offers generous coverage of up to $2,500 per passenger for lost luggage or $1,000 for delayed luggage after four hours so you can buy what you need while waiting for your suitcase to arrive.

Scotiabank Gold American Express Card

The Scotiabank Gold American Express Card is one of the top rewards cards in Canada with comprehensive travel insurance coverage and only a $120 annual fee.

Starting with the travel emergency medical coverage, this card offers up to $1 million in benefits for 25 days of consecutive travel for cardholders 64 and under, and for three days for cardholders aged 65 and above. While this maximum benefit is less than other cards, it has a long list of eligible expenses following treatment for a medical emergency including:

• Hospital accommodation, medical expenses and doctor charges
• Private duty nursing
• Diagnostic services, including laboratory testing and X-rays
• Ambulance services
• Emergency air transport to the nearest hospital or home
• Prescription drugs
• Emergency dental care due to a blow to the mouth, up to $2,000
• Medical appliances, including a sling, brace, splints or local rental of crutches, a walker or wheelchair
• A bedside companion if you’re hospitalized for more than three days, including round-trip airfare and a subsistence allowance of up to $100 per day (maximum $1,500)
• Vehicle return, maximum $1,000
• Car accident assistance, if your car is disabled due to an accident, with a maximum of $200 per day for three days for accommodation, food or commercial transportation/car rental
• Return of deceased, up to $5,000

If you need to cancel or interrupt your trip for a covered reason, such as the death of an immediate family member or a missed connection due to a mechanical delay, trip interruption coverage and trip cancellation coverage offers up to $1,500 per insured person and $10,000 per trip. And if your flight is delayed for more than four hours due to a covered reason, such as bad weather, mechanical breakdown or overbooking, this card pays up to $500 per person for expenses such a hotel, meals and sundry items, like magazines and snacks.

Lost, delayed or stolen baggage can put a damper on any trip. This card pays a maximum of $1,000 for checked bags lost by a common carrier, and up to $1,000 for the cost of buying essential items, such as clothes and toiletries, if your bags are delayed by more than four hours. This card also offers protection of up to $1,000 if your hotel or motel is burgled in the United States or Canada

While some cards have a provision for accidental death or dismemberment, the Scotiabank Gold American Express Card offers Common Carrier Travel Accident Insurance, which pays out in the event of catastrophic losses while travelling on an airplane or while in transit to or from the terminal. The maximum benefit for loss of life, total or permanent disability or multiple dismemberment is $500,000, while payout for partial dismemberment is $250,000.

BMO Air Miles World Elite Mastercard

The BMO Air Miles World Elite Mastercard is among the best Air Miles credit cards available, offering earn rates on rewards that outpace most other Air Miles cards on the market as well as decent travel insurance for a $120 annual fee.

Whether you’re travelling out of the province or out of the country, this card offers up to $5 million in coverage for eligible medical expenses for the first 15 days of travel if you are age 64 or younger. You are not eligible for coverage if you are 65 or above. Eligible medical expenses include:

• Emergency hospital, ambulance and medical
• Private duty nursing
• Emergency air transportation or evacuation
• Professional services of a physiotherapist, chiropractor, osteopath, chiropodist or podiatrist
• Emergency dental
• Transportation to bedside
• Return of deceased
• Hotel and meals
• Return of vehicle

Under the Common Carrier Insurance provision (similar to Accidental Death and Dismemberment), this card pays out up to $500,000 in the event of accidental injury or death while you are entering or travelling on a common carrier.

If you need to cancel your trip before departure due to a covered reason, such as illness, complications of pregnancy (up to 31 weeks) or cancellation of a business meeting, this card offers up to $1,500 per person ($5,000 per account) in trip cancellation insurance. If you’ve already left on your trip and you need to interrupt or delay your travels, this card reimburses up to $2,000 per person (maximum $10,000 per account) under the trip interruption/trip delay coverage.

Flight Delay Insurance provides $500 in coverage if your flight is delayed more than four hours for expenses such as additional accommodation or meals.

If your bags are lost, stolen or damaged while travelling on a common carrier, Baggage Insurance pays out up to $500 per covered person ($1,000 per account per trip) and up to $500 per covered person ($1,000 per account per trip) if your bags are delayed by more than six hours, compared to four hours for the other two cards. And if your loss is due to a hotel burglary, this card pays up to $1,000 to replace or repair your personal property.

Given the included coverage available with these credit cards, how do paid policies differ? Premium prices vary based on traveller age, destination, coverage amounts and length of trip and add an extra expense to a potentially already big expenditure. Is it worth the extra cost?

Unlike credit cards, the main benefit of a standalone travel insurance plan is choice. Many offer a selection of plan options, such as an all-inclusive plan, emergency medical only or trip cancellation/interruption only. Standalone policies may feature higher coverage limits, or offer additional endorsem*nts, such as a pre-existing condition rider, like the Stable for 3 Months add-on offered by Desjardins, that reduces your stability period (or the amount of time your health must be considered “stable” before you leave on your trip), coverage for adventurous activities that are usually excluded from travel insurance plans (World Nomads covers more than 250) and Cancel For Any Reason (CFAR) coverage, such as that offered by CAA Travel Insurance.

While the travel insurance offered with your credit card is covered in the annual fee, you must pay for a standalone travel insurance policy, and premiums vary depending on your age, length of your trip, your answers to a health questionnaire (if required) and the amount of coverage you choose.

Here’s a deeper look at the corresponding standalone available from TD, Scotiabank and BMO to see how they compare to the credit card travel insurance.

TD Insurance Travel Insurance

TD Insurance Travel Insurance offers two single-trip insurance plans for trips outside of Canada: The Medical Plan and the Trip Cancellation and Interruption Plan. You can purchase one or both plans within a single policy. There’s also a multi-trip annual option if you travel several times within a year.

Like the TD® Aeroplan® Visa Infinite Privilege card, TD Insurance offers up to $5 million of emergency medical coverage, but there’s no stipulated days of coverage (unless you purchase a multi-trip plan). The maximum payouts are equal for benefits such as accidental dental and the costs to bring a bedside companion to you, but the standalone policy offers additional coverage including:

• Dental treatment due to pain, up to $500
• Paramedical services, such as a physiotherapist, up to $300 per specialist
• Subsistence allowance due to a medical delay, up to $1,500
• Incidental hospital expenses, such as a TV or parking, up to $500

The standalone insurance offers an update for trip cancellation insurance, up from $5,000 per trip with the card to a maximum of $25,000 with the separate policy.

It’s worth noting that the baggage insurance offered by the credit card is superior to that of the standalone policy. For example, the baggage delay benefit for the standalone policy is up to $400 after a 12-hour delay, while the credit card pays out up to $1,000 after four hours.

Scotia Travel Insurance

Scotia Travel Insurance offers comprehensive coverage in the event of a medical or travel emergency, including an all inclusive plan, emergency medical only and trip cancellation/interruption only plan. There’s also a COVID-19 Pandemic Travel Plan if you’re worried about testing positive for COVID-19 during your trip.

A big difference between the Scotiabank Gold American Express Card travel insurance and the standalone plan is the maximum emergency medical benefit: While the credit card offers a maximum of $1 million in coverage, the standalone policy offers up to $10 million in coverage, again without the trip duration restrictions of the credit card. While the credit card has a robust list of eligible medical expenses, the standalone policy is even more comprehensive, offering higher limits for emergency dental ($3,000), vehicle return ($3,000) as well additional expenses including:

• Dental treatment due to pain, up to $300
• Paramedical services, such as a physiotherapist, up to $700 per injury
• Subsistence allowance due to a medical delay, up to $2,000
• Incidental hospital expenses, such as a TV or parking, up to $300
• Childcare expenses during hospitalization, maximum $500

Like all insurance policies, the cost of a Scotia Travel Insurance plan depends on factors such as the cost of your trip, your age and the amount of coverage you choose. With a Scotia Travel Insurance plan you can reduce your premium cost by choosing a $500, $1,000, $5,000 or $10,000 deductible, or the amount you pay before your emergency medical coverage kicks in.

While all insurance policies have stipulations and exclusions about pre-existing conditions, essentially any health condition that existed before the start of your coverage, Scotia Travel Insurance offers an Individual Medical Underwriting Plan for travellers of any age who would like their pre-existing medical conditions covered with no stability requirements.

BMO Travel Insurance

BMO Travel Insurance offers three core plans for travelling outside of Canada: The Premium Travel Plan, Travel Medical Plan and Trip Protection Plan.

Similar to the BMO Air Miles World Elite Mastercard, the paid policy offers up to $5 million in emergency medical coverage. The medical coverage options are also similar. While the standalone policy does not offer flight or travel accident coverage, the credit card offers $500,000 in Common Carrier Insurance. However, the paid policies offers superior levels of trip cancellation and trip interruption coverage.

A big plus of this plan compared to the credit card is there is no maximum age.

Main Benefits of Paid Policies

There’s no question that a paid policy greatly increases the amount of medical reimbursem*nt available to you in case of injury or illness. In most cases, there’s also more comprehensive coverage, such as reimbursem*nt for childcare costs in the event you are hospitalized or evacuation from a remote area.

Paid policies may provide more opportunities to customize your coverage, and offer additional riders, discounts and even specialized coverage, such as a pandemic plan.

Paid policies offer non-tangible benefits as well. Most companies include extra resources for policyholders to help you plan or research safety issues for your destination before travelling. There are also assistance hotlines you can contact while traveling to get recommendations on doctors or medical facilities abroad.

The biggest downside is that you need to shell out additional money for a standalone policy while credit card travel insurance is included in your annual fee. However, insurance is there to protect your assets in case disaster strikes, so the question remains—how much does peace of mind cost you?

Bottom Line

Credit cards offer real, tangible travel insurance benefits that can protect you from unexpected bills. However, there’s no single credit card that covers every facet of travel coverage and many travellers will prefer a more comprehensive policy, especially if you are older or have pre-existing health issues.

In general, for simple trips, credit card insurance will often suffice. But travellers looking for extensive medical and/or evacuation insurance will need to purchase a separate policy or be prepared to pay for possible expenses out of pocket. A third option is that most standalone policies offer a top-up option where you can purchase insurance in addition to an existing policy, such as a credit card.

Ultimately, there is no one-size-fits all to travel insurance. But the good news is, with all the many options on the market there is certainly one to fit your needs and your budget.