Costco Credit Card Travel Insurance

Last Updated on December 26, 2025 by Amrita Das

Planning a vacation is an exciting puzzle. You have to fit together flights, accommodations, excursions, and dining, all while keeping an eye on your budget. One piece of that puzzle that often gets overlooked—until it’s too late—is travel insurance.

For the millions of loyal Costco members, the Costco Anywhere Visa® Card by Citi is a staple in their wallets. It is renowned for its generous gas rewards and cash back on bulk purchases.

But when it comes to travel, there is often confusion about what this card actually covers. Does it replace a standalone travel insurance policy? Does it cover you if your flight is canceled?

The short answer is: It’s complicated. While the card offers robust travel rewards and specific protections, relying on it as your sole safety net requires a thorough understanding of the fine print.

In this guide, we will break down exactly what the Costco Anywhere Visa® Card covers, what it doesn’t, and how it compares to the standalone travel insurance plans offered through Costco Travel.

Table of Contents

The Reality of Credit Card “Travel Insurance”

When people hear that a credit card comes with “travel benefits,” they often assume this means comprehensive trip protection. They imagine that if they get sick and can’t fly, the card will refund their non-refundable tickets.

However, the travel protection on the Costco Anywhere Visa® Card is specific and targeted. It is not a blanket policy for every travel mishap. According to Citi and expert insights, the coverage focuses primarily on two major areas: accidents during transit and rental car protection.

Understanding these limitations is vital. While the card has “lots of benefits,” consumers need to evaluate if the specific bundle of travel benefits fits their individual circumstances.

The Costco Anywhere Visa® Card (US) Travel Benefits

For United States members, the Costco Anywhere Visa® Card by Citi is the standard-issue credit card. While it is primarily a cash-back card, it does offer a suite of travel protections provided you use the card to pay for the trip.

Worldwide Car Rental Insurance

This is arguably the most valuable travel benefit on the card. When you charge the full cost of a rental car to your Costco card and decline the rental agency’s collision loss/damage waiver, you are covered for physical damage and theft of the vehicle.

However, the type of coverage depends on where you are driving:

Secondary Coverage (Within the US): If you are renting a car in the United States, the coverage is secondary. This means you must file a claim with your personal auto insurance policy first. The credit card benefit will only cover what your personal insurance does not (such as your deductible).
Primary Coverage (International): If you are renting outside the United States, the coverage becomes primary. This is a massive benefit, as it means you can bypass your personal insurance entirely, avoiding potential rate hikes if you scratch a bumper in Italy.

The Limits:

Coverage is capped at $50,000 toward repair or cash value of the car.
The duration of the rental agreement cannot exceed 31 consecutive days.
It covers the vehicle only—it does not cover personal injury or liability (damage to other cars or property).

Worldwide Travel Accident Insurance

The most significant coverage included with the card is the Worldwide Travel Accident Insurance. This is a benefit designed for worst-case scenarios rather than minor inconveniences.

What it covers:

This benefit provides reimbursement up to $250,000 per person. However, this payout is strictly for death or serious permanent injury that occurs while you are in transit.

The condition:

To be eligible, you must have paid for the trip (specifically the common carrier fare, like your plane, train, or cruise ticket) using your Costco Anywhere Visa® Card.

What this means for you:

This is essentially a life and dismemberment policy. It provides financial protection for you or your beneficiaries in the event of a tragedy while traveling. It is not designed to cover medical bills for a broken leg while hiking or a stomach bug that sends you to a local clinic. It is strictly related to the “transit” portion of your journey.

Roadside Assistance Dispatch Service

If you are stranded on the side of the road in the US, Puerto Rico, or the US Virgin Islands, you can call for help.

Important Distinction: This is a dispatch service, not a paid membership like AAA. The card benefit connects you to a service provider for towing, jump starts, or tire changes, but you are responsible for paying the bill for those services at a pre-negotiated rate.

Travel & Emergency Assistance

This serves as a 24/7 concierge for emergencies. If you lose your passport, need a legal referral, or need to find a doctor while abroad, you can call the dedicated line for help. Similar to the roadside assistance benefit, the referral is free, but you are responsible for the cost of any medical or legal services you use.

What is Missing? (The “Gaps” in Coverage)

While the rental car coverage is solid, the Costco Anywhere Visa card is not a comprehensive travel insurance policy. Unlike many premium travel credit cards, the Costco card does not provide coverage for:

Trip Cancellation & Interruption: If you get sick before your trip or need to cut it short due to an emergency, this card will not reimburse your non-refundable expenses.
Trip Delay: If your flight is delayed overnight, this card does not provide stipends for hotels or meals.
Baggage Delay or Loss: If the airline loses your suitcase, there is no specific insurance on this card to replace your clothes or toiletries.
Emergency Medical & Evacuation: The card does not pay for hospital bills or medical evacuation flights, which can cost tens of thousands of dollars.

If you are booking an expensive international trip, you should strongly consider purchasing a separate travel insurance policy to cover these gaps.

The “Other” Insurance: Costco Travel Plans

Because the credit card itself does not offer comprehensive medical or cancellation coverage, Costco offers a separate solution through Costco Travel. This is often where the confusion lies: Costco offers travel insurance, but it is not automatically attached to the Credit Card.

Costco Travel partners with Cover-More Inc. (underwritten by Zurich) to sell standalone travel protection plans. These are the policies that fill the gaps left by the credit card.

Why you might need this standalone plan:

Medical Emergencies: It can cover you if you get sick or injured during your trip (not just in transit).
Cancellation: It protects your financial investment if you have to cancel for a covered reason (like illness).
Baggage: It provides benefits if your bags are lost or delayed.
Travel Delays: It can help with expenses caused by missed connections or car accidents on the way to the airport.

According to Costco Travel, these plans also come with a 24/7 assistance line. If you are booking a cruise or a vacation package through Costco, adding this separate insurance is the only way to ensure you are fully protected against cancellations and medical mishaps.