Credit card travel insurance

Plenty of credit card companies offer travel insurance as one of the benefits for cardholders. Before you rely on credit cards for travel insurance, it's very important to read through the benefits. Here’s why:

• Not enough choice: Credit card travel insurance is an inflexible product that does not include options for things like winter sports or cover for large families. The insurance may be “free" but will it have the cover you need?
• Most of the benefits apply to the card holder only.
• Excesses can be high, which means “free" insurance really can actually cost you more than paid insurance.
• Fewer options: Credit card travel insurance may not include items like replacement of sporting equipment or travel insurance cover for laptops. Again, free could cost you more!
• Smaller support network: Credit card travel insurance rarely offers a Freecall number in multiple countries or reverse charges numbers to make a claim.
• Do you know what you are getting? Credit card travel insurance often starts the first time you use the card, at which time you are held to have agreed to all of its terms and conditions which are usually buried in the documentation that comes with your credit card. Unless you pay lots of attention to the documentation that comes with your credit card, you could find yourself agreeing to insurance that is not right for you.

Some credit card companies that provide travel insurance are:

• American Express
• ANZ
• Commonwealth Bank
• HSBC