Travel Tips

Ask Peter: Peter Answers Your Travel Questions–1.7.12 Edition

Locations in this article:  London, England Miami, FL San Francisco, CA

Rodd from Miami, FL asked: Would you point me in the right direction for choosing a credit card that covers travel insurance, cancellation of insurance, medical insurance, rental car loss of use coverage, and doesn’t charge a foreign-transaction fee. Is there such a card?

Peter commented: Unfortunately, there is no one-stop shop card that can give you all of that. The real key is to figure out how are you going to use the card and where are you going to travel, which will determine the card you choose. If you’re only going to use the card in the U.S., you don’t have to worry about foreign transaction fees that will apply to 1 to 3 percent to of everything you buy. To avoid those fees, choose Capital One, which swallows the costs.

You won’t get one credit card that offers complete travelers insurance, cancellation of insurance, medical insurance or rental car coverage. In my book, most credit cards offer only secondary car insurance, not primary insurance, which means that the secondary insurance kicks in once the primary insurance expires.  You always have to ask the credit card company if they provide you with primary insurance. Loss of use–which refers to the daily fee levied by the rental company if a damaged card has to be in the shop–is commonly excluded.

To compare and contrast different card features, visit this page on CreditCards.com and this feature on Bankrate.com.

For more information on credit cards, check out the Money & Currency archives as well as Peter’s tip on Existing Car Rental Coverage.

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