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Insurance: Credit card travel insurance

To the point Here is a feedback from an important delay on an Air Canada flight, which was paid for with Aeroplan points. Thanks to my various credit cards insurances, I was able to cover the costs incurred and not immediately borne by the airline.
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Credit card travel insurance

It all starts when you prepare for your trip: the right card for the right expense. You might be tempted to pay for everything with the same card, just to make sure you’re covered… Think again.

You need to be familiar with the fine print of credit card insurance policies to know which card to use to pay for which expense. Especially when you use miles or points to pay for your trip.

Insure your airline ticket booked with Aeroplan points

The best way to insure a trip paid for with Aeroplan points is to book it with an Aeroplan credit card that offers travel insurance.

Indeed, other “non-Aeroplan” credit cards generally require that the entire air ticket be paid for with the credit card. This assumes that points have not been used.

In my case, when I booked my plane tickets, I had 3 Aeroplan-affiliated credit cards in my wallet:

I usually pay for my Aeroplan expenses with the American Express® AeroplanMD* Reserve Card ExpressMD. It provides $1,000 coverage for flight and baggage delays.

This time, however, my choice fell on the TD® Aeroplan® Visa Infinite* Card. It offers $500 for flight delays and $1,000 per person for baggage delays.

Why did I choose this card? The lure of profit perhaps: by paying for my trip with this card (in this case, the Aeroplan taxes), I earned 1.5 Aeroplan points per dollar spent. This would have been “only” 1.25 points with the Amex.

But above all, it’s an opportunity for me to put the insurance provided by TD Bank to the test. In fact, it recently became my main bank!

Insured transportation

Cards offering travel insurance and affiliated with the Aeroplan program provide coverage when travel expenses are paid with Aeroplan points.

Here are the rules for the TD® Aeroplan® Visa Infinite* Card:

TD Visa Insured Transportation

Expenses covered

TD Visa Infinite Aeroplan Card insurance covers both baggage delay and flight delay.

td insurance

In my case, my luggage was delivered late, but within 6 hours. So only flight delay insurance will apply, up to a limit of $500.

Insurance coverage conditions

The TD Aeroplan Visa Infinite Card brochure details the conditions under which expenses are covered by the card’s insurance, provided by Allianz.

Conditions of delay

My delay was a mixture of conditions 1 and 2. There was an equipment failure (frozen toilets) on the common carrier (Air Canada). This was caused by the aircraft being parked on the tarmac overnight. Indeed, the weather conditions were violent, with temperatures below -20 degrees Celsius.

The claims procedure

In order to be compensated, you must record all covered expenses on the card and keep all receipts.

For example, I used my TD® Aeroplan® Visa Infinite* Card to pay :

  • Cabs from the airport to the hotel and back
  • The hotel in San Francisco
  • Living expenses.

It is then necessary to submit a claim online on the Allianz website.

Insuring your car rental

For the car rental, I chose another card: the BMO Ascend World Elite Mastercard. It offers one of the best rental car insurance coverages.

What’s more, with all travel expenses such as car rentals, you earn 5 points per dollar spent. Enough to cover foreign exchange fees of 2.5%!

A discount is also available with contract number 3717122 (National Car Rental) or 7014883 (Alamo Rent A Car). Sometimes, this discount can be up to 25%.

Tip : You can also put the vehicle deposit on the card that provides you with the best insurance… and pay at the end of your rental with another credit card if all has gone well (the one that doesn’t charge you FX transaction fees for example!)

Come to discuss that topic in our Facebook Group!
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Jean-Maximilien is an expert in Canada and France about Loyalty programs, Credit cards and Travel. He is the Founding President of Milesopedia.

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