Travel Insurance Analysis: Commonwealth Bank Platinum
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Credit cards have become more than just an easy and safe way to avoid carrying around cash. Not only can you now also shop securely online and pay for just about anything anywhere in the world, you can also be rewarded and protected, just for spending on your card. One of the rewards you can enjoy on the Commonwealth Bank Platinum credit card is complete travel insurance for you and your family.
With travel becoming more and more accessible to most people, the demand for travel insurance for the everyday person is increasing. Travel insurance has also become a necessity because of the new threats or dangers that one can meet while travelling.
Though one does not wish for any happenstance to occur during a trip, it is still wise to prepare for and be protected from those kinds of situations. Delayed flights, cancelled accommodations, and even lost luggage could make any well-planned trip a nightmare. Not only that, the extra money you have to shell out caused by non refunds of cancelled bookings can add to the stress.
To make trips more enjoyable and less stressful, a lot of credit card companies, like the Commonwealth Bank, have introduced travel insurance in their credit cards. The eligibility conditions for your trip will depend on your situation, but usually all you need to do to be covered is to book your holiday using your credit card and you can start taking advantage of extra perks and rewards which include free travel insurance with almost 3 months of coverage. But before you start swiping that plastic to earn points, let us first examine the advantages and disadvantages of a credit card travel insurance.
| Product Name | Commonwealth Bank Platinum Awards Credit Card | |
|---|---|---|
| Balance Transfer Rate | 5.99% p.a. for 5 months | |
| Interest Rate on Purchases | 0% p.a. for 5 months (reverts to 20.24% p.a.) | |
| Offer end date | 30 June 2013 | |
| Annual Fee | $280 p.a. ($250 for qualifying customers) | |
| Interest Free Period | up to 55 days | |
| Interest Rate on Cash Advances | 21.24% p.a. | |
| Minimum Credit Limit
This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure.
|
$8,000 | |
| Minimum Monthly Repayment | 2% | |
| Credit Card Type | American Express/MasterCard | |
| Late Payment Fee | $20 | |
| Complimentary Travel Insurance | Yes | |
| Available to Temporary Residents | Yes | |
| Joint Application | No |
Travel Insurance – Is it for you?
Travel insurance is just one more thing to organise and think about when you’re going away, but luckily if you have a Commonwealth Bank Platinum credit card all of the organisation is done for you. All you need to do is consider whether the benefits of travel insurance through the Commonwealth Bank are worth switching your credit card for:
- It’s free. As stated earlier, most travel insurance linked to credit cards is free of charge. All you have to do is make the required minimum purchase on some items and it is activated automatically. However, not all credit cards have this feature, so it is better to check with your credit card company first.
- It is accessible once it is activated. Once you meet the necessary requirements of purchase, you can use it anytime, anywhere to cover any costs incurred by an accident or damage.
- It has a lot of coverage. Most credit card travel insurance has coverage of $100,000 to $250,000 for 3 months. This is a lot in conjunction with the length of time it represents.
- It can be used in any form of travel. Whether you will be travelling by plane, by boat, or by car, it is covered by this type of insurance.
- It also works like life insurance. Most major credit card companies offer up to 4 different types of insurance, one of which is life. In the event of death while on a trip, your dependents will receive a payout.
At the same time, travel insurance does have its limitations, so don’t be caught out by the following, which you may have to take care of yourself:
- Taxis not included. While credit card travel insurance covers most major ways of travel, it does not include taxi rides.
- You might need to buy tickets individually. Some credit card companies only cover the credit card holder. Furthermore, you might be required to buy tickets separately.
- Expensive fees and charges. With all its perks and rewards, credit cards still command high interest rates and annual charges. The trick there is to find the company with the best offer and competitive rates.
Commonwealth Bank Platinum Card Features
With the influx of credit card travel insurance, it proves to be difficult for someone inexperienced to sort through the various cards available in the market. In light of the evaluation made above between the disadvantages and advantages of credit card travel insurance is a review on one of these types of credit cards – the Commonwealth Bank Platinum.
However, free travel insurance shouldn’t be the only reason you choose the Commonwealth Bank Platinum credit card, as you can also benefit from features such as a 55-day interest free period which will give you enough time to gather your resources and pay what you have purchased just in time with no interests.
The complimentary international travel insurance gives coverage up to 12 months. In addition, its extended warranty insurance and purchase security insurance respectively provide an extended 1 year warranty on top of the Australian manufacturers’ warranty and 90 days of coverage in case the item gets lost, stolen or damaged. It also has an enhanced security protection which allows you to shop online safely and securely. Protected by an enhanced security chip, you can be sure that your money and your account are safe.
Just make sure you will be getting enough benefit from your Commonwealth Bank credit card to outweigh the $250 annual fee, because you don’t want the value of your rewards to be eaten up by the costs of maintaining the card. You may also want to look at the Commonwealth Bank Low Rate Gold option , which offers Complimentary International Travel Insurance for your return trips of up to 3 months.
Credit cards are supposed to make our lives more convenient, because we don’t need to carry that much cash all the time. As long as you make use of the interest free period you can use the bank’s money for free throughout the month, plus enjoy free insurances, protection and warranties.
Read the Commonwealth Bank Platinum Awards Credit Card terms and conditions.
| Minimum Age | 18 years of age | |
|---|---|---|
| Available to Temporary Residents | Yes - Conditions apply | |
| Credit Rating Requirement | Good | |
| Min Credit Limit This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure. | $8,000 |
| Annual Fee | $280 p.a. ($250 for qualifying customers) | |
|---|---|---|
| Minimum Repayment | 2% | |
| Late Payment Fee | $20 | |
| Over Limit Fee | $10 | |
| Overseas Emergency Replacement | $20 | |
| Overseas ATM Balance check | $1.25 | |
| Overseas ATM Withdrawal | $4 | |
| Gambling Transactions Allowed | No | |
| Additional Cardholder Fee | $15 |
Pros
- A rate of accrual of 3.00 Awards Points for every dollar spent with the American Express card.
Cons
- Additional card holders will incur a fee of $15 each in addition to the primary card's annual fee.
- This card is similar to the gold card but has an annual fee of almost double the price.
- Points are capped at 250000 for the year and when you have opted-in to the Qantas Frequent Flyer program the rate of accrual when using the American Express card halves.
Read the Commonwealth Bank Platinum Awards Credit Card terms and conditions.
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if i pay with platinum m/card a hire car in brisbane is the excess covered by m/card?
Hi Karin,
Thanks for your comment. This card feature is only for international travel.
Hope this helps.
What are the conditions I have to meet when traveling Internationally to have free travel Insurance if I have a Platinum Com/card?
How long may I travel Overseas?