Credit card travel insurance – How does it stack up

Credit card travel insurance refers to travel insurance that comes as complimentary with credit cards. Many high-end credit cards in New Zealand now offer complimentary travel insurance, but how do they stack up against standard travel insurance? Are they a suitable alternative for standard travel insurance? Below we explore some of the pros and cons to help you decide.

The Pros:

• Most credit card travel insurance are now on par if not better with standard travel insurance in terms of the level of coverage they offer, although a few credit card travel insurance only offer up to 35 days overseas cover
• You do not have to get a travel insurance cover for each trip you take overseas with a credit card travel insurance. Your credit card travel insurance should cover you for any trip as long as you meet the activation criteria
• It’s free! Well… sort of. Credit cards with complimentary travel insurance generally come a larger than usual annual fee, but they also come with a lot of other extras such as reward points and purchase protection
• If the drawcard for you in the reward points or airpoints then the travel insurance is just an extra bonus
• These cards usually offer cover for you, your spouse and your dependent children travelling with you

The Cons:

• Credit cards with complimentary travel insurance generally have a higher than usual annual fee so you are paying for your travel insurance through the high annual fees.
• Just having the credit card is not enough to cover you. You usually have to pay for your pre-paid travel cost (before you travel) using your credit card to be covered and there is also usually a minimum pre-paid spend level required to be covered, but you can easily book your flights with your card.
• You usually have to book a return flight before you leave to be covered.
• There are age restriction for people over 74 years old plus cover is usually not offered for people over 90 years old.
• Some cards do not cover pre-existing conditions, and would not let you pay extra to get this extra cover.
• Some cards require you to contact them to before you travel.

Conclusion:

Travel Insurance Credit Cards could save you hundreds of dollars on travel insurance, but it is important to make sure you are covered before you leave New Zealand.

Credit card travel insurance offer about the same level of coverage if not better than standard travel insurance, but they come with a few conditions that are required for you to activate your coverage each time you travel. We recommend that you read the details carefully to make sure you meet the conditions to activate your cover. We highly recommend that you always contact your card provider to confirm if you would be covered before you set off on your trip.

For more information and tips to help you choose the best credit card in NZ, visit our website Credit Cards Compare.