Credit card companies are known for offering customers added benefits like built-in travel insurance, but depending on a traveler's needs, this coverage may not be the best option.

Travel insurance comparison site, Squaremouth, explains three instances where comprehensive third-party travel insurance policies can cover your costs when credit cards won't.

If you have a medical emergency

Most credit cards don't include medical coverage if a traveler has a medical emergency while traveling. If a credit card does come with travel medical benefits, it is often a limited amount, ranging from $2,500 to $5,000.

Third-party travel medical insurance offers more comprehensive medical coverage, with benefits ranging from $10,000 to $250,000 for Emergency Medical and $100,000 to $2,000,000 for Medical Evacuation. Third-party policies can also offer coverage for pre-existing conditions, including chronic conditions and recent diagnoses, illnesses, or injuries.

Squaremouth recommends travelers going overseas buy a policy with at least $50,000 in Emergency Medical coverage and $100,000 in Medical Evacuation coverage, and higher amounts for cruises or remote travel.

If your travel plans get disrupted 

Many credit cards offer Trip Cancellation coverage to customers who pay for trips through their card, reimbursing travelers who are unable to take their trip as planned. However, these cards typically limit coverage to a specific amount, with the most generous cards covering only up to $10,000 per person and $20,000 per trip.

Travelers who need more coverage for their trip can compare and buy a policy from a third-party insurance provider or a comparison site. These policies can cover much higher trip costs and can reimburse up to 100% of prepaid and non-refundable travel expenses, such as airfare, hotels, and tours.

If you want cancellation flexibility

Many travelers want the flexibility to cancel a trip on a whim. Unfortunately, there are usually covered reasons that must be met, such as illness, death, severe weather, or terrorism.

For travelers looking for the broadest coverage, many third-party policies offer a benefit called Cancel For Any Reason. This benefit can refund you for a majority of your trip expenses if you cancel for a reason not otherwise covered, like changing your mind about your travel plans.

For a full breakdown of third-party policies and credit card coverage visit Squaremouth's Guide to Credit Card Travel Insurance.