Any credit card will let you travel internationally and get you from point A to B, but will your credit card reward you for travelling, save you money in fees and provide a host of complimentary features such as travel insurance?
Key features to take into account when choosing the best travel credit card for yourself or your family include:
Travel Credit Card Rewards
If you spend a significant amount on your credit card per year, the value of rewards can really stack up.
Reward point accumulation from even just your day-to-day expenses can ultimately lead to thousands of dollars worth of flights.
If you’re in a ‘dry spell of flying’, your reward points won’t necessary go to waste either.
Even the Frequent Flyer reward program offers a huge variety of retail rewards.
For some of the top travel credit card offers Australia has to offer, view the Frequent Flyer comparison table.
I wouldn’t spend enough on my credit card to make rewards worth it, what’s an alternative?
Reward programs involve close management of your credit card, such as strictly limiting the amount of interest you pay and spending enough per year to compensate for the annual fee in terms of reward point value.
An overview of credit card travel insurance
The majority of gold, platinum or travel orientated cards offer some form of ‘complimentary international travel insurance’.
But is it all the same cover?
Generally speaking the extent of insurance, security and purchase cover is limited in relation to typical third party insurance. It’s simply a nice feature to have peace of mind, with hardly any hassling paperwork to sort out.
The extent of cover is usually dependant on the status and annual fee of the card. See the comparison between the extent of cover between the Commonwealth Bank Gold and Platinum card below:
You will see similar patterns of cover discrepancy among other credit card providers as well.
What are some of the benefits associated with credit card travel insurance?
This varies from provider to provider and card to card.
Listed below is a summary of what you can expect to receive as standard in your complimentary travel insurance package. This includes, but is not limited to:
- Overseas expenses resulting from medical and hospitalisation.
- Damage or theft to personal belongings.
- Cancellation of travel arrangements and other uncalled for travel expenses.
- Alternative transport cover stemming from an unexpected delay. Travel delays in general.
- Excess cover on rental vehicle insurance.
- Funeral expenses under accidental death clauses.
- General legal liability
- A loss of income whilst travelling.
How can I confirm I’m covered by my credit card’s complimentary insurance cover?
The main condition of most providers it that the majority, if not all of the travel expenses are paid for by the credit card which offers the travel insurance.
Check the product disclosure and terms/conditions carefully to ensure you what’s required to be eligible.
For extra reassurance, you can compile your travel scenario and directly ask via phone or bank branch whether you will be covered under your individual circumstances.
How can I lodge an insurance claim overseas?
Your bank will outline the specific nuances and contact details. Most Australian banks will require you to:
- All your relevant travel documents, particularly itinerary.
- Proof of your ticket/travel purchases being paid for by your relevant travel credit card. This can be in the form of your most recent statement.
- If your flight and travel expenses are covered by reward point redemption, you’ll need any relevant documents which state the reward point redemption.
A few key factors to confirm the terms of your insurance include whether your family is included, whether extreme sports i.e skiing or snowboarding are covered, and whether persons over the age of 65 are covered.
When it comes to travel credit cards, nothing beats the prestige and travel benefits of a Gold or Platinum credit card.
View and compare some of the most competitive gold credit cards and platinum credit cards on offer in the Australian market.