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HomeGerman FinanceShould you really get a credit card with travel insurance?

Should you really get a credit card with travel insurance?

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Woohoo! We can now travel again. That means we should be dusting off our wallets and looking for that credit card with travel insurance. A credit card with travel insurance benefits can be worth its weight in gold for frequent travelers, family travelers, business travelers or backpackers. Find out more about credit cards with travel insurance

Germans and Expats alike are planning their summer holidays, thanks in part to the easing of the COVID lockdowns. A credit card with travel insurance especially travel cancellation insurance is the most sought-after travel insurance service. Most gold and premium cards offer travel protection. Some even if the trip was not paid for with the card.

Again and again we are plagued by wanderlust. And who hasn’t asked themselves when booking their next vacation trip: “Should I – or shouldn’t I – take out travel cancellation insurance? As a precaution? “You never know, and in the event of a sudden illness or new corona sanctions, the financial damage would at least be limited with insurance.

Because not traveling can be just as expensive as traveling. As is well known, the cancellation costs increase congruently with the period up to the start of the trip: the shorter the cancellation before the trip, the higher the cancellation costs. If you have to cancel your trip shortly before, you will pay up to 100 percent of the value of the trip.

Nomally, a credit card with travel insurance includes other insurance benefits. The following guide will answer whether such a card is worthwhile, what subtleties have to be taken into account and what advantages the “golden ones” still offer.

credit card with travel insurance

Which travel insurance should the credit card generally have?

Aside from the fact that travel cancellation insurance is probably the most popular topic in travel insurance, there are a few other important benefits. If you are often on the go, you should also take a look at credit cards with:

  • Trip cancellation insurance
  • International travel health insurance
  • International accident insurance
  • Luggage insurance
  • Baggage delay insurance
  • Travel legal protection

Is it worth buying a credit card with cancellation insurance?

That depends on the card. A credit card with cancellation insurance is useful if

  • it covers several scenarios that cause a trip to be interrupted or not to start a trip.
  • the holder travels abroad at least once a year.

Holidaymakers should pay attention to this when choosing a credit card with travel insurance

Anyone who thinks, “Great, I kill two birds with one stone – credit card and insurance” should ask the following points before signing a binding contract:

  • Which insurances are actually included in the benefits?
  • Which ones are particularly important to me? Which ones do I absolutely need?
  • Up to what travel price does the policy apply? 
  • How much is my deductible?
  • Does the insurance always step in? Or only if the trip was paid for with the card? This is particularly important because private holiday apartments – booked via an online travel portal, for example – often do not have to be paid for with a credit card. 

An example: Holidays at long last! You want to treat yourself to something and book a luxury holiday apartment online from a private provider. But it doesn’t accept credit card payments. Now you have to cancel the booking due to illness shortly before the start of your journey. For example, this is no problem for owners of an Amesican Express Gold. This is because the travel cancellation and travel interruption insurance will take effect even if you have not paid for the trip with the Amex card.

TIPIf you cancel your trip or vacation out of fear of, for example, Corona, the travel cancellation insurance will not pay. However, this usually takes effect if you have contracted the virus immediately before starting your trip. A medical certificate must be submitted. You should therefore check the insurance conditions of your credit card provider before booking your trip so that you know exactly what applies.

credit card with travel insurance

Comparison of credit cards with travel insurance

Around a third of all regional banks and savings banks offer their gold card in a package with their premium account, in which the monthly flat rate includes all essential costs for the card as well as for general bookings, transfers, standing orders or for withdrawing money in Germany. 

If you don’t want a flat-rate account, you can add your golden credit card. Of course, this also applies to all other regional banks and savings banks that have not integrated the gold card into any account model. On average, they charge an annual fee of around 75 euros for these cards. 

When comparing the gold cards from banks and savings banks, the following differences should be noted:

  • Many direct banks do not offer a gold card with included insurance.
  • The same goes for most Sparda banks. Instead, they offer their customers platinum cards with a more comprehensive service package at significantly higher fees.
  • Consumer-friendly banks are satisfied with a maximum personal contribution of 300 euros in the event of damage, others charge 20 percent of the damage amount.
  • With the offers of some banks and savings banks, the protection is limited to 5,000 euros per year, with others the limit is significantly higher at 10,000 euros.

Cards that are linked to the opening of a current account:

providersAnnual gold card awardThe use of un -dependentInsurance coverage up toDeductible
BBBank
€ 65.00Yes€ 10,000€ 300.00
Consorsbank€ 60.00No€ 10,00020% of the damage, at least 100 €
Commerzbank€ 99.90Yes€ 5,00020% of the damage, at least 100 €
Deutsche Bank
€ 94.00 *No€ 5,0000.00 €
Hypovereinsbank60.00 € (free of charge with the exclusive account)Yes€ 5,000 single, € 7,500 family20% of the damage, at least 100 €
MLP Bankfrom 50.00 – 190.00 €, depending on sales **Yes€ 5,000 single, € 10,000 family10% of the damage, at least 100 €
Postbank€ 59.00No€ 5,200 single, € 10,400 family20% of the damage, at least 100 €
PSD banks€ 60.00Yes€ 10,000 per family and claim / € 5,000 per insured person and claim300.00
Santander0.00 – 90.00 €, depending on sales (card no longer on sale)Yes€ 5,000100 €
Sparda banks **
90.00 – 180.00 €yes
(Sparda southwest: no)
€ 10,000
(Sparda Südwest: families € 10,000 / singles € 5,000)
€ 0.00
(Sparda Southwest: € 300)
Savings banks€ 30.00 – € 96.00differentlyusually 10,000 €usually € 150 single, € 300 family
Targobank *€ 97.00No€ 7,50020% of the damage, at least 100 €
VR banks25.00 – 99.00 €Yes€ 10,000 per family and claim, max. € 5,000 per insured person and claim300 €
* A travel cancellation policy is not included in the gold cards; only in the travel, platinum or other cards. Their prices are correspondingly higher.
** A gold card is not offered, only travel or platinum cards.
credit card with travel insurance

Cards that are not linked to a current account:

providersAnnual gold card awardThe use of un -dependentInsurance coverage up toDeductible
ADACTravel package: € 70.80 *
Platinum package: € 118.80 * 
No**10,000 € and up to five people traveling with you20% of the damage, at least 100 €
Advanzia0.00 €No**€ 3,000 ***20% of the damage, at least 100 €
AMEX€ 144.00 ****No€ 5,00010% of the damage, at least 100 €
Barclaycard€ 59.00No€ 5,000 and up to six accompanying family members20% of the damage, at least 100 €
Lufthansa€ 110.00No€ 5,00010% of the damage, at least 100 €
Hanseatic€ 35.00 *****No**€ 5,00010% of the damage, at least 100 €
Mercedes Benz
€ 83.40No€ 10,000100 €
TF bank0.00 €No**3,000 € *** and up to three other fellow travelers with the insured person20% of the damage, at least 100 €
* Can only be applied for with ADAC membership.
** Insurance cover exists if at least 50 percent of the travel expenses have been paid with the card.
*** No or limited insurance cover from 70/75 years.
**** EUR 72 starting credit for new customers with a card turnover of EUR 3,000 or more within the first six months. 
***** No annual fee for new customers in the first year and further, provided that the annual turnover is at least 3,000 euros.

Take out travel cancellation insurance separately – when is it worth it?

Taking out travel cancellation insurance separately online through an insurance company or with a broker can be worthwhile. This is the case if: 

  • you don’t have a credit card.
  • the existing credit card does not have a suitable policy.
  • the travel costs exceed the maximum of the insurance coverage (5,000 or 10,000 euros per provider).
  • the insurance cover only applies if the trip is paid for by credit card.

If you can’t get past the extra policy, you should obtain several offers from a broker. Because, as with almost all insurance, the costs and conditions are quite different. For example, a 40-year-old father pays between 119 and 519 euros for a trip with his family worth 6,000 euros for travel cancellation and travel interruption, depending on the provider. For the money, he could organize a high-performance credit card (even platinum!) And, depending on the card model, benefit from other bonus programs.

credit card with travel insurance

Conclusion: Golden credit card with travel insurance – pointless gimmick or worth the money?

Are you a frequent traveler who travels several times a year? Backpacker who can’t stand it for more than six months in his home? Digital nomad who has been around the world for at least six months? Or simply a “one-time traveler”? Then a credit card with travel cancellation insurance is worthwhile. Because let’s be honest, everyone needs a credit card anyway. 

And when you travel, you just take a card with the corresponding additional protection package. When choosing, it is important not to fall for the first advertisement, always carefully weigh the costs and benefits of the credit card offers and to question the essential points of the insurance benefits. 

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Expaturm aims to help educate Expats in Germany on key issues that they will have to deal with while living in Germany by providing everything you need to know about Banking, Healthcare, Lifestyle, and Housing in Germany
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