Credit Card Travel Insurance

June 24th, 2010

When you need travel insurance, one of the cheapest and easiest ways to obtain it is through your credit card. However, there are certain conditions that need to be met before your travel insurance with your credit card is validated.

Most platinum, gold and travel credit cards will offer travel insurance for overseas travel, however the cover for each card will vary. Compare the different insurance policies until you find the one that suits your needs.

Insurance Policies Included

Some cards advertise that insurance is included, usually these are a complimentary feature of the travel benefits of the credit card, and are covered by the annual fee. Policies and cover vary from card to card, but some of the most common options for travel insurance with your credit card are:

Period covered: Dependent on the annual fee and status of the card, but generally ranges from 3-12 months. May include payout values for property or claims.

General travel insurance for overseas: This covers cancellations, flights, loss of luggage, medical expenses or delays. Payouts can be up to $20,000. Examine the small print as some covers exclude certain payouts, for example losing cash with your baggage.

Purchase security insurance: Any purchases that you make on your card, whether international or domestic, are usually covered for 30 to 150 days from damage or theft. Again you need to check the fine print on your policy because items such as cash, animals, plant life, business products, or products intended for resale are usually not covered.

Extended warranty cover: Many entertainment or luxury items that include a standard warranty will offer an extension from 6 to 24 months. This cover can apply to popular and household items.

Rental vehicle insurance: Occasionally you will find credit card companies that offer rental vehicle access. This type of cover can be anything from $1,000 to $6,000, however, there are usually other conditions. For example you may be required to take out a fully comprehensive policy from the rental company. This type of insurance may not be included with your credit card, but some credit providers such as ANZ, do have rental insurance for $24 per year.

Transport accident insurance: You could be compensated anything from $100k to $1million if you or your family are involved in a transport accident abroad and a family member dies or is severely injured. Family cover is not always available so check that this feature is offered on your credit card insurance. Also the nature and severity of the injury may be questioned.

Personal property insurance: When your property is stolen or lost overseas, you will receive a payout equal to the value of the property, less depreciation. Conditions apply; for example, should your property be stolen from an unattended vehicle your cover will be limited. Some policies will not cover items stolen from public places.

On a final note, if you are interested in travel insurance with your credit card, make sure you compare all offers, and read the fine print so you know exactly what you are covered for.

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	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Westpac 55 Day Credit Card	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%