The big con about your credit card's free 'travel insurance'
By: Shirley Stevens | Posted: 13th August 2008
Before you start packing your bags for that much longed-for summer holiday, it would be wise to do a double-check on the terms and conditions of your credit card's supposed 'free travel insurance'.
Be warned - full travel insurance and the more common travel accident insurance offered by most credit cards are completely different forms of cover.
Most credit cards offer free Travel Accident Insurance but it is only for very limited cover, so it is just as well to check out exactly what you are covered for well before you leave for the airport.
Dig out your credit card paperwork and check the small print carefully - as I always say, 'the devil is in the detail'.
Very limited and restricted cover
Travel Accident Insurance is a largely meaningless form of insurance and provides very limited and restrictive cover, in spite of the liberal use of the term 'travel insurance'. It is like chalk and cheese compared to genuine travel insurance.
If ever there was a real contradiction in terms, this is it.
For instance, it offers little or no cover prior to your journey for such events as lost property, missed departures or travel delays and cancellations through no fault of your own.
Surprisingly, you will not be covered at the other end either.
Planes, trains and automobiles
The much-vaunted and free Travel Accident Insurance punted by credit cards is purely designed to insure you while you are actually en route to your destination, whether by bus, taxi, train or plane.
You will certainly want wider cover than that.
Even worse, the cover is really limited and you may find your credit card company will only pay out for a major accident such as death, permanent disability or the loss of an eye or limb.
Should you find on closer investigation that your cover is likely to be inadequate for your planned holiday; your first priority should be to look around for a comprehensive travel insurance plan from a dedicated travel insurance provider.
This should at the very least insure you for repatriation, personal liability, lost possessions, legal charges and medical expenses.
Be proactive and forearmed so you are not taken by surprise if the worst should happen.
Full holiday travel insurance
You may be wondering if there is a credit card that offers free comprehensive travel insurance.
The short answer is 'Yes'!
Barclaycard is one credit card company who offer comprehensive travel insurance for holidaymakers booking through one of their tour operators, on condition that you pay for the holiday using a Barclaycard credit card.
Before going ahead and booking, it is important to weigh up the insurance benefits the credit cards claim to offer and take a good look too at the small print to check that the benefits are really as good as advertised.
To summarise, a credit card which gives you comprehensive and unrestricted insurance coverage is almost always better than a card which offers Travel Accident insurance only.
About the Author
Personal finance guru Shirley Stevens is an independent personal finance journalist who shares her distinctive knowledge of financial products with leading sites like ChooseMoney.co.uk, famous for its ability to compare credit cards and compare loans - amongst others - quickly and easily.
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Tags: spite, credit cards, paperwork, insurance provider, travel accident insurance, contradiction in terms, summer holiday, insurance plan, major accident, departures