Credit Cards with Free Travel Insurance

There are certain factors to consider when you're comparing credit card travel insurance options. And yes, it’s always better to look at what your credit card travel insurance offers before you apply, rather than before you fly.

• Activation and eligibility: Find out how the cover is activated. Do you need to spend a certain amount on the card? Or perhaps book a return ticket on your card? You may need to log into your account to activate your cover manually before each trip. In terms of eligibility, check the PDS to make sure you and any family members are eligible.
• Length of travel: Check how much cover is offered over the year. You may be limited to trips of 30 days, or you may have an annual coverage allowance. If you travel a lot, make sure the cover provided allows for this.
• Level of coverage: Similar to standalone travel insurance, credit card travel insurance can also offer levels of cover. The level of cover offered usually depends on the level of the card, so lower level cards may offer less cover than more expensive premium cards. Ensure the card you are applying for offers the level of cover required.
• Excess: While some credit card travel insurance requires an excess to be paid in the event of a claim, other policies do not. Typically, insurance provided on lower level cards will have an excess, while high-end cards do not, but this will vary according to the card. Think about how much you are willing to pay in excess, and whether the policy still offers value if you have to make a claim.
• Terms and conditions: It's tedious, but important that you read the terms and conditions in full. Do this before you rely on the cover – not after you want to make a claim.

There's a wide range of credit cards that offer travel insurance, however, you'll usually find this feature offered on premium cards. Premium cards are usually labelled frequent flyer cards, rewards cards and platinum, black and diamond cards.

While you may find credit card insurance on low-cost cards, most cards offering credit card insurance tend to have a higher annual fee and/or higher interest. To make the most of these cards, it’s important to make sure you get good value from the extras offered, while avoiding interest by clearing your balance by the due date each month.

Check out the range of credit cards offering credit card travel insurance above.

The way in which you make a claim will depend on the insurance underwriter of the policy, as you will be making the claim with them, not with your card provider. Before you travel, it can be a good idea to find out how to make a claim. You can usually find this information online from your card provider, or alternatively, call them to find out more.

We spend a lot of time talking about how to find the right credit card – and all the same rules apply here. Firstly, think about what you need from the card, and how you will use it. Weigh up how much you will pay in annual fees against what features are on offer. When it comes to travel insurance, think about whether it offers everything you need, and if you will get use out of it.

If you tend to carry a balance on your card, a card with a high purchase rate – as is often the case with cards with travel insurance – may not be the best option. You may also want to consider whether the card offers other features you’re interested in, such as rewards. Be sure to take into account currency conversion fees if you plan to use the card while overseas.

If you’ve ever spent time comparing travel insurance options, you’ll understand the benefit of having credit card travel insurance that you know you can rely on, whenever you need it. One of the greatest benefits of credit card travel insurance is the time it can save you comparing, choosing and buying standalone travel insurance.

Of course, it can also allow you to save money. Instead of paying for standalone travel cover, you can utilise the travel insurance offered on your credit card. And, there’s that old ‘peace of mind’ factor spruiked by all insurance providers. With your credit card travel insurance sorted, you can enjoy peace of mind that you’re covered.

This can include the standard cover that you know you need, plus additional cover you may not have thought of investing in. For example, when you hire a car, the rental company will invariably ask you if you want to reduce your excess by paying for extra cover. If you say no and are involved in an accident, your credit card insurance may provide cover regardless.

It's also worth bearing in mind that your credit card insurance may cover more than just you. You may also enjoy cover for you and your family if they are travelling with you. It may also offer cover for any additional cardholders you have on your account. And, if you happen to be getting on in years, you may find it easier to get cover on your card’s insurance than elsewhere.

Lastly, unlike standalone travel insurance which can charge more in premiums depending on your destination, your credit card travel insurance could offer you cover at no extra cost, no matter where in the world you are heading.

But – and this is a big but – you have to make sure your credit card travel insurance offers you all of these things should you need them. Cover can vary extensively depending on the credit card you choose. So, before you choose a card – and especially before you travel – you need to check the cover on offer.

Before you apply for a credit card with travel insurance, it’s a good idea to find out more about what’s on offer.

• Read the product disclosure statement (PDS). This is usually available in PDF or paper format. Yes, it is mind-numbingly boring, but it does provide all the need-to-know on what the travel insurance covers – and what it doesn’t.
• Find out what it covers. Look at what the cover offers, such as medical expenses and personal belongings.
• Check whether there are any limits on the cover. This may include the number of days you can travel at one time, or within the year.
• Check whether there are any exclusions on the cover. This could include pre-existing medical conditions, or travellers above a certain age.
• Find out who the policy covers. You may need the cover only for yourself, or you may need it to cover family members travelling with you, or any additional cardholders on the account. If the policy covers them, check what is needed to activate their cover, and what conditions apply.
• Ensure you know what you need to do to activate your cover. This may include paying for your travel with your card. You may need to spend a certain amount, or you may need to purchase return tickets for the cover to be valid.
• Consider whether there is an excess to pay. Some credit card travel insurance will require you to pay an excess if you make a claim. Think about whether the cover still offers good value if you have to pay this excess.