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By Donna Jennings
Staff Writer
Monday, 23 June 2008 |
Is Your Credit Card Covering Your Travel Insurance?
Did you know?
- Spain ranks as the highest theft hotspot with over 37% of Brits reporting possessions stolen. France follows closely behind with 19% falling victim to thieves
- One in four people have had possessions stolen whilst on holiday
- One in five Brits have had their holiday accommodation broken into
- One in ten holiday makers have had property stolen from their vehicle in foreign countries
- Over half have had £50 to £500 worth of possessions taken while on holiday in Europe.
Most Stolen Belongings:
- Cash
- Wallets
- Cameras
- Clothing, hand bags and jewellery
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Julia Kukiewicz shows you how - with a decent credit card comparison site - you can claw back some of your lost Euros on your holiday this year.
The no-nonsense guide to travel insurance
If you're not getting your travel insurance free from your credit card, you'd better make sure you understand the ins and outs of finding the right kind of policy for you. It could save you a good deal in holiday cash before you leave, and a lifetime of debt if something goes wrong. Helen Storey presents the no nonsense guide to travel insurance.
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IF you’re blissfully counting down the days to an incident free summer holiday in the mistaken belief that you’re insured just because you paid for it on your credit card, you may want to pause for a moment to check that you really are covered whilst you are away.
Dig out the terms and conditions which came with your credit card – or view them online - and check that you really do have full travel insurance rather than travel accident insurance which is a completely different form of cover.
The Travel Accident Insurance Con
Almost all credit cards offer so-called Travel Accident Insurance free.
However, Travel Accident Insurance – despite the fact that it contains the words travel insurance in close proximity – is actually a very limited form of insurance and bears little resemblance to real travel insurance.
In fact, some argue that Travel Accident Insurance is not worth the paper it is printed on.
In most instances, you will not be protected prior to travelling (so travel delays, lost possessions, missed departures or cancellations cannot be claimed for) and, unbelievably, when you reach their destination either!
Most Travel Accident Insurance only covers you while you actually travel on a plane, train, bus or taxi to your destination.
Even whilst travelling, cover is very limited and quite often, a credit card company will only pay out for a very serious accident such as loss of life, losing an eye/limb or becoming permanently disabled.
Some further examples of where travel accident insurance will fail you:
- If you fall ill whilst on holiday ( this isn't an accident, so sad day for you. And your wallet.)
- If you have a record of a heart condition prior to an accident
- If you slip or fall once you have reached your destination. (You are not physically travelling so this cannot be classed as a travel accident).
Full Travel insurance
If you have just dug out the old paperwork for your credit card and have discovered that you are not sufficiently covered, you will need to invest pronto in a comprehensive travel insurance plan that will cover you in the following ways:
- Medical expenses up to £2m within Europe and even higher for North America
- Repatriation cover which will return you back to the UK
- Personal liability of up to at least £2 million. This will protect you if you cause damage to someone’s property whilst abroad or accidentally hurt someone
- Lost and stolen possessions
- Cancellation and curtailment (having to cut your holiday short)
- 24 hour emergency service and assistance
- Legal expenses
- Financial protection in case your airline should go bust before or during your trip
But can you get this kind of travel insurance on a credit card?
Which credit cards offer full travel insurance?
Don’t find out by accident!
Barclaycard and Capital One offer full holiday travel insurance for those who book a holiday through one of their tour operators and pay using their credit card.
It is important to check out the benefits that credit cards can offer.
Also take a look at the small print to find out if things really are as good as they say.
The range of credit cards available today can be quite diverse:
- British Airways Premium Plus credit card
- Travel accident insurance.
- Lost luggage insurance
- Flight delay insurance
- Emergency help abroad
- Emergency card replacement
- VIP airport lounge access
- Priority check-in
Read our full review of the British Airways Premium Plus credit card
- MBNA Rewards American Express credit card
- Travel Accident Insurance
- Full travel insurance
- Lost luggage insurance
- Flight delay insurance
- Concierge service
- Barclaycard Platinum Low Rate:
- Emergency help abroad
- Emergency card replacement
Read our full review of the MBNA Rewards Express credit card
- Co-operative Bank Platinum credit card
- Travel Accident Insurance
- Emergency help abroad
- Emergency card replacement
Read our full review of the Co-operative Bank Platinum credit card
With such an extensive deck of credit cards available, it is difficult to know which one can offer the best deal.
We have carried out some in-depth research and have managed to find the ace in the pack...
- The Capital One Cashback with World Mastercard
- Full travel insurance
- Travel accident insurance
- Lost luggage insurance
- Emergency help abroad which consists of travel assistance to help resolve any travel, legal or medical emergency whilst away
- An advancement of funds if you should lose your credit card whilst on holiday
- Flight delay insurance
- Emergency card replacement
Read our full review of the Capital One Cashback with World Mastercard credit card
Tuck this credit card under your belt this summer and chill out in the sun.
A credit card will full insurance will let you strip down to your skimpy beachwear but still keep you covered – unlike that rubbish Travel Accident Insurance!
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