Below is a good comparison article on Australian Business Traveller, detailing Australian credit card travel insurance options. It highlights the best and worst features of Australia’s most popular credit card travel insurance policies.
I’ll point out a couple of items I feel are important to note when considering credit card insurance policies:
- These “free” policies often require you to pay using your credit card. Almost all airlines and travel providers charge for payments made via credit card, usually in the vicinity 1-2% for Visa/MasterCard and 3-4% for Amex/Diners. On a typical return economy airfare to Europe this can be anywhere between $25-75 per person, add in accommodation etc and these fees increase dramatically. The net result is you end up paying for your “free” policy in credit card fees.
- The vast majority of travel insurance claims are for amounts under $500. The most common reasons for claiming are lost baggage, medical costs, travel delay and cancellation of journey. Most credit card policies will therefore have you footing the bill for a large portion of a typical claim.
- Most of these cards have a relatively high annual card fee. While they are also often linked to rewards programs and provide value beyond just the free travel insurance, it is still important to consider this fee when comparing.
Click here to read the full article at Australian Business Traveller.
P.S. I’m sure you have heard that buying travel insurance from a travel agent is a rip off (Not true). That we earn a large commission selling it (This is true). However, you aren’t paying more for simply the travel insurance policy. You are paying extra for:
- Experienced consultants assisting in selecting a policy to suit your needs.
- Assistance in lodging claims and preparing documents for claims.
- Access to someone you know and trust while overseas to help in case of emergencies.
Seems to be quite good value to me……
Photo credit jared
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