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Do you rely on Credit Card Travel Insurance?

Oct 31, 2018

Higher-end credit cards love to offer “free” bonuses with their cards, including Travel Insurance, but we take a look at how “free travel insurance” stacks up against “standalone travel insurance”.

Despite higher interest rates and higher annual fees covering the cost of these “bonuses”, there are terms and conditions that might deter you away from relying on this type of cover.

  • Most cards require you to buy your departure ticket (or tickets, if you’re travelling with your family) on your credit card in order to be covered. Often there are also threshold amounts ($500, say) you have to spend before departure on travel costs per person to activate their coverage.
  • In most cases you need to have a return ticket booked before you leave, which might be a dampener for explorers looking for more open-ended adventure.
  • Some banks require you to notify them to get full coverage for each trip. Whilst base coverage will still give you emergency medical treatment, you might not get coverage for property damage or luggage delays.
  • Most standalone travel insurance policies will have an excess of $100 when making a claim. You would be lucky to get away with paying $250 per claim, if not more with your Credit Card Travel Insurance.
  • Majority of credit card insurance doesn’t automatically cover pre-existing medical conditions and won’t let you pay an extra premium for an exception.
  • Credit Card Travel Insurance doesn’t apply to domestic travel, although some cards will reimburse expenses associated with domestic flight delays and missed connections.
  • Age limits are common in credit card travel policies, if you’re 80 or over, with most cards you are not covered. Even if you are younger, and your trip is interrupted and you need to head home because of a family members death or illness, you’re not covered if they are over 80.
  • Credit card insurance is often only valid for 3 months, and unlike stand-alone travel insurance policies, can’t be extended. If at any point you change your itinerary and extend it beyond the maximum trip duration period, cover immediately ceases.
  • Limitations on what constitutes a “dependent child” travelling with you – generally the maximum age is 19 years. Whilst you and your spouse get somewhat cover, other adult family members travelling with you will not.
  • Some policies only cover rental car excess if you drive a sedan or station wagon (not hatchbacks, 4WDs, campervans or other common rental car types), and often will only respond if you have accepted all insurance options from the car rental company.

It’s very basic cover, at best. Ads on television suggest insurance is simple, that all policies are the same and it’s just about the price, but there is a massive difference!

Checking the conditions and exclusions is important, and comparing it to a stand-alone cover is vital. AustBrokers Comsure offer standalone, annual and corporate travel policies and recommend getting a review done on your travel insurance to make sure you are covered in the event of a claim.

It’s important to understand what you are covered for, and if it’s the right policy for you. Before your next trip, think about the types of activities you’ll be doing while on holidays, where you’ll be going, what you’ll be taking with you, as well as your own personal situation and health conditions.

If you would like a Travel Insurance quote, please contact AustBrokers Comsure on 1800 122 194 .

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