Your credit card may come with ‘free’ travel insurance, but does it provide enough cover for your holidays? Or is this freebie too good to be true?
There is no denying the benefits of plastic when travelling - and everyone loves free stuff, don’t they? But, in fact your credit card travel insurance often isn’t actually ‘free’, because you are probably paying an annual fee for the privilege of having that particular credit card and the benefits that come with it – one of which may be travel insurance. This perk is one way in which credit card companies can compete for your custom in this competitive market.
Credit card travel insurance varies a lot in terms of benefits offered. Yours may be just what you need and so it could potentially save you on buying a standalone travel insurance policy. However, the devil is in the detail and you should make a point of knowing what the cover is; and decide whether it’s right for you before you book your next trip.
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1. What’s covered? Check that it provides the cover you need – is there enough baggage cover? Would it cover the cost of your holiday if you need to cancel or curtail? Are medical and repatriation expenses included?
2. Check who is covered: there may be restrictions for other family members.
3. Watch out for pre-existing medical condition restrictions - and comply fully with the declaration requirements.
4. What is the maximum age limit?
5. Adventure activities – or leisure pursuits may not be covered if they are seen as higher risk.
If you check the details of your credit card travel insurance, you could find that this perk suits your requirements and will save you the time and money in buying travel insurance, but it could be the costliest mistake you’ve ever made if you don’t check in advance.
1. Most important of all - you can tailor cover to suit your needs: you might not want baggage cover, but have a pre-existing medical condition.
2. It’s a ‘must have’: not just a ‘nice to have’. A three day stay in a private hospital and a repatriation will cost you thousands.
3. It’s a competitive market: so you don’t have to pay a lot to get great cover. Remember, the cheapest may not provide the cover you need, and the most expensive policy isn’t necessarily the best, so make an informed purchase by checking the cover thoroughly.
4. If travelling with friends: you can get cover with just one policy.
The conclusion is, if you are lucky, your credit card travel insurance might meet your needs and be relied upon while you are away, but check so you’re so you are not caught out when it’s too late. Ultimately, there is no substitute for choosing your own travel insurance policy, especially when you can buy good family Annual travel insurance for under £60.
Read also: Top 12 Travel Insurance Questions Answered