Value of Travel Insurance/Why are Travel cards such a low return?

QuestionsValue of Travel Insurance/Why are Travel cards such a low return?
asked 3 years ago

I have been running numbers for next year on my projected CC spend and, all things included (like the devaluation of my Freedom UR points) I come out ~$ 30 ahead if I swap my CSP for the AARP and put my flights on my Amex Fidelity.

Question 1: has anyone tried to value the insurance perks that travel cards try to offer? I don’t know if it’s worth the difference to me.

Question 2: Why are travel cards such a low return percentage rate? My UR points are worth about 1.7 cents with Southwest so I have to pay $ 95/year to get a 3.4% travel reward.

But for $ 75 I can get 6% on groceries, and for no annual fee I can get at least 3% (if not 5%) back in all my other major score categories (insurance, dining, gas, etc.).

Heck, I can get a few 2% no AF cards that apply to everything. So why is, say, the VentureOne at 1.25% so highly esteemed?

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