New Data Shows 62% of Travelers Are Wrong About What Their Travel Credit Card Covers

ST. PETERSBURG, Fla., Aug. 18, 2026 /PRNewswire/ -- A new Squaremouth survey of 4,700 travelers found that two-thirds of American travelers hold at least one travel credit card, and most think they know what it covers. 9 out of 10 say they're familiar with their card's protections, and over half (55%) confidently say they know exactly what they have.

However, when presented with basic facts about the differences between travel insurance and travel credit cards, these same travelers were largely unaware of the most important drawbacks, gaps, and exclusions in travel credit card coverage.

Cardholders Often Overestimate the Coverage They Have

• 62% were unaware that pre-existing health conditions aren't always covered. Most travel credit cards exclude claims related to pre-diagnosed or previously treated conditions occurring 60 days or less before their initial trip deposit.
• 62% did not know that travel credit cards have a limited list of cancellation reasons and often cap reimbursement well below their trip's total cost. Most travel credit cards cap Trip Cancellation coverage at $10,000 per person, and one widely held card caps it at $2,000 per person.
• 55% were unaware that card protection only applies to purchases made on that card, and most cards require the full fare to be charged to the card to be eligible for coverage. A trip paid partially with points, miles, or another card would not qualify.
• 48% did not know that travel credit cards offer little to no Emergency Medical coverage abroad. Squaremouth's market analysis found that only one travel credit card offers Emergency Medical coverage, and it's capped at $2,500 with a $50 deductible. The rest offer none.
• Finally, one-third of travelers confided they had no idea that travel credit cards aren't an adequate substitute for comprehensive travel insurance.

Some of the Most Popular Travel Credit Cards Offer the Least Protection

Squaremouth found that airline and hotel co-branded credit cards are by far the most popular among travelers surveyed (30.2%), outpacing stronger card suites like Chase Sapphire (23.8%) and American Express (20.7%). Yet, these cards generally offer the weakest travel protections in the entire industry.

"Treat your credit card as a supplement to travel insurance, not a full replacement," says Chrissy Valdez, Senior Director of Operations at Squaremouth. "Our market analyses have repeatedly shown that the majority of travel cards are built to reward travel, not to insure it. Currently, 3 out of the 4 major premium travel cards offer no Emergency Medical coverage at all, which means if you get sick overseas, you'll likely be paying out of pocket unless you have supplemental travel insurance."

What Cardholders Should Consider Before Traveling

• Every travel credit card is different, so take the time to review yours before you travel and ensure you're aware of any coverage gaps, limits, or exclusions.
• If you're traveling outside of the U.S., your primary health insurance will not cover you. Make sure you have medical protection that meets the recommended minimum: $50,000 in Emergency Medical coverage and $100,000 in Medical Evacuation coverage.
• If you or a member of your traveling party has a pre-existing condition, do not rely on your credit card protection; opt for traditional travel insurance with a pre-existing condition waiver.
• If your trip costs over $10,000, or you paid with a mix of points, miles, or multiple credit cards, consider a comprehensive travel insurance plan to cover the full cost of your trip.
• Don't let cost keep you from considering supplemental coverage. Many travel insurance policies cost just a few dollars per day for sufficient protection and could save you thousands if you ever need to use it.

To compare comprehensive travel insurance plans against your card's coverage, visit Squaremouth.com.

For more detail on how card protection compares to comprehensive coverage, see Squaremouth's Credit Card Travel Insurance Guide.

About Squaremouth
For over 20 years, Squaremouth has helped more than 4.6 million travelers quote, compare, and purchase travel insurance online. Renowned for its award-winning customer service, commitment to transparency, and unbiased approach, Squaremouth has been a leader in travel insurance comparison since 2003. As America's largest travel insurance marketplace, Squaremouth.com features more providers and plans than any other platform.

Contact
Steven Benna
Senior Manager, Marketing
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SOURCE Squaremouth