Credit Cards With Travel Insurance
Traveling requires a lot of preparation, be it local or international. Necessities such as clothes, shoes and toiletries must be carefully chosen and packed. These days, it’s also de rigor for travelers to bring along scores of gadgets such as mobile phones, laptops and cameras.
Protecting your self and your possessions is of utmost importance when traveling. You wouldn’t want to be stuck somewhere without your belongings, most especially if these are vital items like your passport, credit card, identification documents and medicine.
Seasoned travelers advice newbies to avail of travel insurance when traveling. While travel insurance will only be helpful should something happen, it’s nice to know that you’ve got a cushion to help catch you as you fall.
What is travel insurance?
Travel insurance works pretty much the same way as regular insurance. It’s intended to cover medical expenses, travel suppliers’ financial default and other losses people may incur when traveling. It covers both local and international travel.
Depending on the company providing the insurance, coverage and conditions vary. Student travel, adventure travel, cruise travel and business travel are among those that can be insured.
Travel insurance cost varies. In most cases, it’s quite expensive and can take a huge chunk of your budget. While it is indeed convenient, many folks often take the risk of not getting it because they do not want to shell out extra money. Questions like “What if nothing happens? What becomes of my insurance if I don’t use it?” crop up.
Credit Cards with Travel Insurance
The best option you have when it comes to availing of travel insurance is to check for credit cards that offer it as part of their service. Credit card companies o er a variety of perks and extras when you sign up with them, and those that are geared towards travelers often come with travel insurance as a perk.
The advantage of this is you don’t have to shell out any extra cost for basic travel insurance. It also means you don’t have to fill up more paperwork because the details can be pulled from your credit card details.
Getting a credit card with travel insurance is pretty similar to getting a regular credit card. You have to consider the usual things you do with a normal card: How much are the interest and other fees? Is there an annual fee? What other benefits do I get if I avail of your service.
Things to Consider When Getting A Credit Card with Travel Insurance
Read through the fine print. Like regular credit cards with a rewards program, the travel insurance card has certain provisions when it comes to the service. Make sure you read through them before you sign up.
Check the coverage of the service. Many credit card travel insurance offer a general coverage, but may have certain exceptions. Before signing up, here some common questions to ask:
- Is the insurance for local travel or international travel, or both?
- Will it cover the activities you plan to take up, such as skiing or hiking?
- Are loss of all items compensated, or is it only for specific items that fall within a certain amount?
- Will this cover all medical expenses or just partial? If so, up until how much?
- Who is covered with the insurance? Unlike traditional insurance that covers you, your spouse and other dependents, travel insurance that came with the card usually covers only the card holder.
- Are there any other fees? Just because it’s part of the service doesn’t mean it’s 100% free. It’s possible that the coverage is limited, which means you may have to shell out more than you would have if you signed up for a regular card.
Which Card Should I Get?
Getting travel insurance with your credit card will truly save you a lot of money along the way. But like other choices when it comes to your finances, weigh your options carefully. Ask yourself if you will benefit from it with just this particular travel, or will you be able to use it next time you go on a vacation. Check if the fees and the coverage are sufficient for your needs. It’s better to ensure that you’ve made the right choice from the beginning than lamenting your bad choice when you need to use it.
You can find the credit card with travel insurance that best suits you by trawling the Internet, but here’s a list to get you started.
| Card | Purchase Rate | Cash Rate | Balance transfer | Annual fee | Interest free |
| Bankwest Zero Platinum MasterCard | 1% p.a. for 6 months (reverts to 17.99% p.a.) | 18.99% p.a. | 4.99% p.a. for 12 months | $0 | Up to 55 days |
| Westpac Earth Gold Card (complimentary overseas travel insurance cover for trips of up to 3 months) | 1% p.a. for 6 months (reverts to 17.99% p.a.) | 18.99% p.a. | 4.99% p.a. for 12 months | $0 | 45 |
| Westpac Earth Platinum Card | 19.99% p.a. | 21.49% p.a. | 0.99% p.a. for 6 months | $250 | 45 |
| Citibank Gold Card | 20.99% p.a. | 21.74% p.a. | $149 | 55 | |
| Citibank Clear Platinum Visa Card | 11.99% p.a. | 21.74% p.a. | 2.9% p.a. for 12 months | $99 | 55 |
As you can see from this limited sample of what’s on offer, there’s a wide variation among the credit cards with travel insurance as to their differing annual fees, interest-free periods, interest rates for different transactions and balance transfer rates, so it’s well worth your doing good research.
| Minimum Income | $30,000 | Minimum Age | 18 years of age |
| Residency | Permanent Australian Resident | Credit Rating Requirement | Good |
| Min Credit Limit | $5,000 | Max Credit Limit | $60,000 |
| Annual Fee | $149 | Balance Transfer Fee | |
| Minimum Repayment | 2% | Interest Charged From | Purchase Date |
| Late Payment Fee | $10 | Over Limit Fee | $40 |
| Overseas Emergency Replacement | $0 | Overseas ATM Balance check | $0 |
| Overseas ATM Withdrawal | $5 | Foreign Currency Conversion Fee |
| Rewards Points per Dollar | VISA: 2 up to 2012, Partners: 5 up to 2012 Point(s) | Points needed for Syd/Mel Return Flight | 0 |
| Points needed for $100 Voucher | 8600 |
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