Is Credit Card Travel Insurance Worth It?

If you travel often, chances are that you've heard about credit card travel insurance. It's currently one of the most popular travel insurance options today, since it comes with your gold or premium credit card at no extra cost to you. This a great thing since, while many of us only have regular credit cards, those with the types of cards we mentioned could benefit greatly from this.

Aside from coming free with your premium or gold credit card, you can also get automatic coverage for your family, which eliminates the need to buy a separate policy for them. However, there might be restrictions or limitations on other types of coverage you'll get. For example, the amount of medical coverage might be up to a certain amount only (some offer only up to $500,000), while others don't provide coverage for extreme sport activities such as snowboarding and skydiving.

With all these discussed, let's talk about what you need to know when you have credit card travel insurance:

  1. Consider getting separate policies for your travel essentials. Medical coverage is very important if you're traveling, especially if you're going to countries such as the United States, Japan, and certain countries in Europe. As we said earlier, your credit card travel insurance only offers limited medical cover, so it's important that you get a separate policy that would provide you with higher cover. Meanwhile, if you're planning on doing extreme sport activities, make sure you get additional cover for this as well. Again, this isn't part of your credit card travel insurance, thus the need for a separate coverage.
  2. Find out exactly what you're covered for. Since credit card travel insurance is offered to clients automatically, there's no way of telling if the coverage it provides is enough to suit your personal needs. Therefore, make sure to check the details and the fine print of your coverage before you travel. It might be that you aren't exactly automatically covered after all, since some credit card companies require you to spend at least $500 for your prepaid transportation before you can avail of the insurance.
Here at Rate Detective, we will help you find the best travel insurance for your needs, with or without credit card travel insurance. Our consultants will assess your needs and provide you with rate comparisons of Australia's top insurance companies so that you can get a deal that is truly tailor-fit to your needs. Contact us today!


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Published on May 5-rd, 2013 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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