The Benefits of Credit Cards with Travel Insurance

Many Australians spend time travelling, whether it’s for business or leisure, but sometimes things go wrong. At those moments you really appreciate having good travel insurance. Many banks offer complimentary travel insurance as one of the benefits for using their cards, and it can be a very tempting incentive when selecting the best deal. Use our comparison table to compare credit cards and find the deal to save you the most money and provide the best cover.

Lost luggage, missed flights, losing you wallet and getting sick are all nightmare scenarios during holidays or business trips. Having good travel insurance can protect you against these unforeseen events. There is a variety of cards with travel insurance as part of the package, particularly those aimed at frequent flyers, and there are many different types of cover available. Take a moment to consider the deals presented on our comparison table to find the credit card that suits your travel habits.

Help with Choosing a Card

Q: What are credit cards with travel insurance? A: Credit cards with travel insurance are simply cards that come with complimentary insurance included as part of the overall deal. This means, if you travel, and have paid for your airfare with your card, you are automatically covered should your luggage be lost or if you miss your flight, etc. This can save you hundreds of dollars, so it’s a very handy feature.

Q: What are the benefits of a travel insurance credit card? A: The main benefit of these cards is the cover they offer when you are travelling. Theses cards can also save you money in the long-run, both by cutting the cost of insurance out of each journey you make, and paying the costs if things go wrong.

Q: What are the drawbacks of complimentary travel insurance? A: The drawbacks are very few. Obviously if your insurance is already covered you don’t get much choice in the company and the precise level of coverage you’re after. So you want to sort out what you need and want before you even sign up for the card. There may also be some terms and conditions, like having to pay for all or part of your travel with your credit card. Whether only you, the cardholder, or your whole family is covered is dependent upon the card and the travel insurance it comes with. Lastly, be aware that usually, the travel insurance is limited to overseas travel. If you want domestic coverage, you may need to purchase this separately. The bottom line is that it pays to be aware of any restrictions or inflexibilities in the cover you’re getting and whether they will be a hindrance to you. This will ensure that the card that offers complimentary travel insurance is of maximum benefit to you.

Q. How much cover is included? A: The type and amount of cover included varies significantly. Sometimes you might only be covered for accidents; other times just you and your belongings are covered but rental vehicle excess if you needed it wouldn’t be. Your family may or may not be covered. And of course, sometimes you get the works. Keep in mind that the best cover offered is usually found on the higher end cards – gold and platinum. So in a sense you do actually pay for it in the form of an annual fee and you’d want to make sure it was worth your while if you’re getting a card specifically for the travel insurance. See below for more information on the types of cover that may or may not be included.

Q: Will my family be covered? A: This is entirely dependent on the card and the extent of cover it offers. It is very important though to answer this question if you want to include your family in the cover. There would be little worse than thinking your family is covered when they’re not. Make sure you do your homework and read the fine print carefully.

Q: What is actually covered in 'complimentary travel insurance’? A: Complimentary insurance is generally covered by the annual fee. The extent of benefits though varies from card to card. Below is a list of the variations you can get depending on the type of policy. Few will cover you for all of these so make sure you check what you are in fact covered for.

• Timeframe of cover – Travel insurance generally ranges from 3 months to 12 months, dependent on the status and annual fee of your card. Make sure you’re covered for the extent of your trips.
• General overseas travel insurance – On average you are usually covered for around $20,000 on your travel insurance. This will cover flight cancellations, luggage loss, delays, and medical. Keep checking the fine print though – some policies don’t cover cash loss in baggage for example.
• Rental vehicle excess insurance – Credit card insurance policies occasionally cover rental vehicle excess ranging from around $1,000 up to $6,000 or more.
• *Transport accident insurance – This insurance will cover you if you were to be severely injured or even die in a transport accident while abroad. Compensation ranges between $100,000 to $1,000,000. Family cover is not always included, but if it is, the same will apply to members of your family. Check the fine print and note that the severity of any injuries may also come into question.
• Property and personal belongings insurance – This insurance covers you for when one of your personal belongings is lost or stolen overseas. The insurance company will pay out equal to the product value, minus depreciation. Do keep in mind that personal responsibility will be taken into account and can affect your claim. If you left your laptop unattended somewhere, your coverage may be quite strictly limited. Some policies will not cover the item at all if it’s stolen from a public place.
• Purchase cover insurance – whenever you make a purchase at home or overseas on your card, this insurance will cover your purchase from theft or damage for a period ranging from 30-150 days. Note that cash, items such as those for the purpose of resale, business products, animals or plants are generally not covered.
• Extended warranty cover – If you buy just about anything that comes with a warranty including household, entertainment and luxury items, this insurance will get your warranty extended from 6 months up to 24 months. This means if the item is lost, stolen or sustains accidental damage, you’ll be covered.

Q: Can I get domestic and international travel insurance cover? A: This will depend on the card and what it specifically offers. Check the fine print! Usually complimentary travel insurance only covers you for overseas travel. In light of this you may wish to consider whether the card is still worth your while. If you travel a lot, but not overseas so much, the complimentary travel insurance may not be of much benefit to you as you’ll have to purchase domestic cover separately.

Q: What other rewards are available on these cards? A: Because complimentary travel insurance usually comes with higher end cards, you’re likely also to enjoy attractive rewards programs, security, convenience and other bonus features. Most importantly, choose a card that suits your needs. There’s no point paying an annual fee for something that doesn’t give you maximum benefit.

Q: What should I look out for when selecting a travel insurance credit card? A: As with any credit card, it’s important to read the small print before signing-up. You want to know what you’re actually getting and what’s included in your travel insurance. As mentioned, good travel insurance is usually associated with premium cards such as gold and platinum cards. These usually come with higher interest rates and bigger annual fees, so weigh up whether the cover is worth the extra yearly expense. Also check what the insurance actually covers: Are you covered for all travel or only with a particular company? Is there a limit to how many trips you are covered for each year? Does it cover domestic or international travel? What specifically does the cover protect you against? Make sure you know all about the restrictions of your cover and whether it will meet your needs before applying.

Q: What other factors should I take into consideration? A: When comparing credit cards for travel insurance you need to also look at all the other aspects of the package before signing-up. The most comprehensive cover usually comes with higher-end cards, which will also feature a range of other benefits, so select one that best suits your lifestyle. It is also essential to compare the interest rates, fees and limits to find the card that is also the most cost-effective for you.

Q: Will I need to keep my own travel insurance? A: Unless you have read through the insurance cover offered by your credit card and are satisfied with the terms and conditions as well as the cover offered, then you would be best to maintain your existing policy, should you have one already.

Q: How do I apply for a card which includes travel insurance in the offer? A: The application process for one of these cards is easy. Just click on the 'Apply’ button and fill in the secure online application process with your details. Once you have successfully completed the application the bank will send your new card and you can start enjoying the confidence that comes with good travel cover.