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Quick Answer
Many credit cards, at no extra cost, offer travel insurance when trips are booked using them. On average, standalone policies run about 5% to 10% of the trip’s total price, reaching a projected $5.8 billion in U.S. revenue by 2025. Cards like Chase Sapphire Preferred and Capital One Venture X include coverage for trip cancellations, lost luggage, and car rentals. But beware, some issuers, such as NAB, are scaling back benefits; always check your card’s current terms via its app.
Travel insurance isn’t a luxury anymore. In 2024, U.S. travelers spent $5.56 billion on it. A growing number of these policies come bundled with credit cards, free of charge and activated automatically when the full trip cost is charged to them. This isn’t some urban myth, it’s a feature found in cards like Chase Sapphire Preferred, American Express Platinum, and Capital One Venture X.
But don’t assume coverage will always be there. Some issuers are making changes. Australia’s NAB announced it would remove international travel insurance for MyCard holders starting May 15, 2026, not great news for U.S. users with linked accounts. This guide walks you through activating, managing, and claiming travel insurance through your credit card, using real-world data and verified card terms.
Key Takeaways
- Travel Insurance Costs: Around 5% to 10% of the total trip price, according to the National Association of Insurance Commissioners (NAIC) (2026). (Source)
- U.S. Travel Insurance Revenue: Reached $5.8 billion in 2025, driven by demand for trip cancellation coverage. (Source)
- Chase Sapphire Preferred Coverage: Offers up to $10,000 per trip for trip cancellation, with an annual maximum of $20,000.
- Trip Cancellation/Interruption Coverage Popularity: In 2024, 94.7% of travel protection products purchased were for this reason. (Source)
- NAB’s Changes: The issuer is ending international travel insurance coverage effective May 15, 2026. (Source)
Related reading: use smart luggage tag automatically.
