Credit card travel insurance

Many credit cards offer travel insurance, but is it enough to cover you in any situation or should you consider purchasing an additional policy?

Q. Mary
I have always take out an annual travel insurance policy as I do travel quite frequently, however, as I’ve been ill for the past year, I haven’t renewed. I’m now ready to start travelling again and have booked a trip to Hong Kong in March and hope to get to South America before the year is out. I am, however, quite taken aback by how much the cost of annual, worldwide policies seems to have risen and have been looking at less expensive alternatives.

I have a platinum Frequent Flyer credit card and it seems from reading the PDS that (i)I’m eligible, (ii)it covers all that I require and (iii)I don’t have to pay anything up front.

This seems amazing to me  – is it for real? Why would I need to take out travel insurance?

A. Travel insurance is often an additional cost which you can do without, but not having the right cover can be extremely costly.  It’s understandable that if you already have cover, you don’t want to pay for any more.

Credit card travel insurance can have limitations, so I would be very careful about assuming you’re completely covered by the policy offered by your provider.

You should consider the following:

  • you may only be covered if you paid for all your travel with your card
  • is your travelling partner covered?
  • pre-existing medical conditions may not be covered
  • check exclusions carefully

The proof of good insurance is how a claim is dealt with. The LMI Group has a claims comparison website which rates companies based on the claims process. You may wish to have a look at it before you decide on which insurance to purchase.

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