A lot of consumers think that their travel insurance policy will protect them in all situations.
The plans are usually provided by your issuing bank as a benefit of owning and using a certain card. We say using because you need to book your transportation and accommodations using the plastic that offers the plan in order for it to be valid. However, even if you follow the rules and book everything with that plastic, there may still be situations when your cover might not work.
In order to make the most of these valuable benefits, you need to understand exactly what will and will not be covered. You must also understand all of the terms and conditions contained in your agreement so that any claim you make will be approved.
Credit Cards with Complimentary Travel Insurance
Travel Insurance Policy Benefits
You have probably read that you are protected in the event you have to cancel your trip. While you may be able to get a refund from your plan, it will only be for certain situations. You cannot simply cancel your trip at the last minute because you do not want to go or because you forgot to ask for the time off work. Usually, you will only be able to make a claim if you have to cancel because of an illness, a court subpoena, lost documents, or a natural disaster. You will also not be able to get a claim approved if there was a chance you knew the event was going to occur. For example, if you knew there was a possibility your grandmother would pass away, but planned a trip anyway, your claim will likely be denied. Regardless of what happens, you should first try to get your money back from the airline and hotel before you file a claim.
When you travel abroad, you may use the coverage of travel insurance to pay for emergency medical treatment. Usually the coverage is unlimited as long as the illness occurred while you were overseas. If you have a condition prior to leaving that you think may be an issue while you are away, you should check to see if those potential costs can be pre-approved. Whenever you make a claim, you must provide proof that you dealt with a medical professional.
Some plans will cover the loss or damage of personal property up to a certain amount. Usually there is one amount for a single person and then a set amount for a family. There may also be limits on how much you can claim for certain items. For example, if you lost your $2,000 camera, you may only be able to make a claim for the maximum benefit of $1,000
Credit cards offer these plans as another way to lure you into doing business with them. Even though they might not protect you from every possible problem, they are still quite valuable, especially because they are complimentary. Travel insurance is once scheme that can really save you loads of cash in the long run.
If you want to compare other credit cards which offer the same features, have a look at our Gold and Platinum Credit Cards comparison guide.Back to top