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There are certain things we all know we need, even though we hope we will never need to use them: spare tyres, fire extinguishers, first aid kits and backup hard drives to name a few. Travel insurance is the same, providing protection and reassurance in those moments of unexpected calamity.
If you were to ask us, “Am I adequately protected with my credit card travel insurance?”, the simple answer would be… it’s complicated and you can’t risk not understanding it. Peace of mind comes from knowing exactly what your credit card insurance does and doesn’t cover, and that means we’re going to need to dig a little deeper. It starts with asking yourself:
The policy will come with a Product Disclosure Statement (PDS) and it is your responsibility to read and understand it. Sure, they’re not a thrilling read, but they set out what your policy covers, including any exclusions or limits and the general terms and conditions attached to it. It also outlines your responsibilities, the process for making a claim, and any specific requirements relating to adventurous activities, pre-existing conditions and high-value personal items.
Although a PDS is typically written in plain English, it does contain a great deal of detailed information that you may or may not have the time, expertise or enthusiasm to wade through.
As a rule, credit card insurance is owned and underwritten by a third-party insurance company rather than the credit card company. It is the underwriter that will be responsible for handling your claims, answering your policy questions and providing you with emergency assistance should you need it. Every underwriter has its own unique policy coverage and terms. Some insurers have a stellar reputation for adopting a customer centric approach and fair claims handling practices, so feel free to do your research and ask around to learn more.
Even if you are happy with the finer details of your insurance policy, don’t assume that you are automatically covered for your next holiday. Your coverage may only be activated by a specific purchase – for example, using your credit card to pay for a set percentage of your overall holiday costs. You may also be required to notify the credit card company of your plans, or to use a particular service to book your travel arrangements. If you are unsure, speak to your credit card provider to ensure you have followed all the necessary steps to activate.
Although some credit card travel insurance policies automatically cover spouses and dependents who are travelling together, you may find there are conditions and exclusions, such as age limits or the number of dependents covered, that will apply. It is important to read the PDS to understand the terms and conditions of coverage to see if it is right for you.
When you see the word “unlimited”, don’t assume it covers everything. Unlimited medical might sound reassuring, but what exactly does it apply to? Often, it only covers specific conditions or treatments that fit within the policy’s guidelines. Before relying on “unlimited” coverage, ask yourself: Does this policy truly cover my needs, or am I overlooking exclusions that could leave me unprotected? Be sure to read the fine print and watch out for any disclaimers or ‘symbols’ to better understand the terms and conditions, limitations and exclusions that may apply.
Not all policies are created equal. As a general rule, most travel insurance policies do not cover pre-existing medical conditions, and you may need to inquire further if you can undergo a medical assessment to determine if cover may be able and at what additional cost. If you do have a pre-existing condition, you must check the finer details about whether it’s covered and to what extent.
Are you an active relaxer, at your happiest when you’re flinging yourself into yet another adrenaline-inducing escapade? If so, you may need to opt for a travel insurance policy that allows you to pay a surcharge so you are covered for adventurous activities that are considered high-risk, such as skiing or scuba-diving.
Even cruising may require specific cruise cover, as standard travel insurance may not include medical treatment at sea, evacuation from the ship, or missed port departures due to illness or delays.
Before you assume you’re covered, ask yourself: Does my policy specifically include the activities and type of travel I’m planning, or do I need to upgrade my coverage?
Most travel insurance providers maintain a list of countries that are excluded from coverage due to political instability, operational servicing constraints, sanctions or other high-risk factors. Many other countries require you to have comprehensive travel insurance as a condition for entry. If you’re visiting a destination where medical costs are notoriously high, you’ll need to ensure that your credit card policy’s coverage limits won’t leave you scrambling to pay the residual.
When it comes down to it, the best travel insurance is the one that best suits you, and this can vary, not just from person to person but also from one holiday to the next. It is important to do your own homework or research by reading the Product Disclosure Statement (PDS) to learn more about how the policy operates to see if it is right for you.
Credit card travel insurance may be convenient and cost effective. It’s nice to have one less thing to have to think about when planning a trip. But there can be risks in taking this approach.
If this all sounds like too much risk or trouble, your personal travel manager is trained to guide you on what to consider when choosing travel insurance for your next trip. They’ll ask you some key questions to help ensure you have appropriate protection for your next holiday. Find out more about Cover-More’s comprehensive insurance here.
Sponsored by Cover-More
TravelManagers respects and honours the Traditional Custodians of the land and pay our respects to their Elders past, present and future. We acknowledge the stories, traditions and culture of Aboriginal and Torres Strait Islander peoples on the lands where we work and gather, and those we visit.
