Credit Card Travel Insurance

Whilst the banks endlessly continue to produce ever more services to their customers, cross selling at every opportunity, it is easy to be lulled into a false sense of security that the banks know best and their products are faultless. Recent events have shown how vulnerable they are and how they can place the general public at financial risk. In particular, this applies to their various insurance divisions.

Take the case of travel insurance. Many people have come unstuck relying on the thought that the insurance cover they have associated with their credit card gives them comprehensive holiday or travel cover, the same as the full bank travel insurance which includes cover for medical expenses, repatriation, cancellation fees and many other items.

The cover provided by most credit card travel insurance policies is, however, rather limited and is sometimes referred to as ‘Travel Accident’ cover. When you break it down, it means that cover does not apply to you before you travel or when you arrive at your destination, it only covers you, quite literally, while you’re travelling and may provide only compensation for injury on the trip. For example, if you were robbed, it might only cover you just for monies stolen whilst travelling and not if stolen from the hotel room at your destination – a common source of claims.

Reading the small print of a card offering travel insurance is essential, as you may find that you won’t be covered for a number of activities, for some modes of transport, and even when visiting certain countries. So, it is best for travellers not to take short cuts with their insurances and rely solely on credit cards or medical aid for travel insurance. These have been rejected as inadequate by some embassies in the past apart from the obvious danger of not having comprehensive or even basic cover for a traveller’s needs.

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