Credit cards have made managing our travel finances easier than ever. There’s no denying that many travellers love credit cards because they are very useful when travelling, spreading the cost of finance. Many credit cards these days come with “free” travel insurance, but is it enough cover for your holiday?
Free travel insurance with your credit card can be too good to be true. In fact, it is not actually “free” because you’re probably paying it with an annual fee. Providing travel insurance as an extra benefit with your credit card is one way of credit card companies being relevant to the tourist in this very competitive market.
Credit Card Travel Insurance: Things To Watch Out For
Credit Card Travel Insurance differs in terms of the benefits they offer. The following are some points that you must consider
a. What is covered? – check if it covers all that you would possibly need. Check if medical and repatriation expenses are included, if the baggage cover is enough or if it would also cover the cost if you curtail or cancel the trip. Some credit card insurance providers exclude cover for stolen or lost items and exclude pre-existing medical conditions from coverage.
b. Who is covered? – Check if it covers your whole family or is there some restrictions for other family members. Some only cover the cardholder while other credit card policies cover the other members of the family such as the spouse or dependent children.
c. What is the maximum age limit? – check if there is an age limit for the coverage. Many
d. Is there a pre-existing medical condition restriction? – declare everything so you won’t have problems with the terms and conditions in case you need to make a claim.
e. Is there a restriction on adventure activities? – most insurers don’t cover that are deemed highly dangerous or risky. Some activities that are not that dangerous may not be covered, skiing being a case in point.
Benefits Of Comprehensive Travel Insurance
Buying comprehensive travel insurance can be a wise move as it offers a number of benefits. The best thing about travel insurance is that it offers a cover that will suit your needs and can help you save. A 3-day stay in a private hospital can be costly as the repatriation can cost many thousands of pounds. Accidents can happen anytime – in hotel rooms, on tour buses or in hire cars. It’s so important to be covered on your travel insurance as if you are not it could cost you a lot of money.
Depending on the credit card that you choose, you may get a host of other benefits such as reward points, or free stays in airport lounges. In addition to that, the level of coverage is often comparable to what the stand-alone insurers are offering.
For many travellers, comprehensive travel insurance may provide sufficient insurance coverage but it is still very important to understand the terms and conditions as well as the limitations and exclusions to make sure that it suits or gives what you really need.
