The dangers of credit card travel insurance

Jetsetters hoping to save money by using their credit card travel insurance policies may actually end up leaving themselves without any cover. Here’s what to look out for.

Jetsetters looking to save on holiday costs often take advantage of complimentary travel insurance that comes with their credit card.

But unsuspecting travellers need to be aware this can catch them out and leave them without the necessary cover.

The list of exclusions that come with credit card travel insurance policies can include:

• Only the cardholder is covered.

• Pre-existing medical conditions.

• Adventure activities.

• The insurance will only “activate” once you have paid for some or all of your flight, accommodation and tour costs on that card.

• Higher excesses and restrictions on age limits.

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Manroop Soin, 34, on holiday in Bergen, Norway said she got caught out when trying to use credit card travel insurance on an overseas trip.

Lawyer Manroop Soin, 34, is a regular traveller and recently got stung trying to use credit card travel insurance for a trip Hong Kong.

“I have an Amex card that has travel insurance but when I booked my flights my friend booked them on her credit card,” she said.

“I didn’t realise this meant my credit card wouldn’t cover me for travel insurance because I didn’t book this particular trip with my own credit card.”

She said this was despite paying for all other holiday expenses on her card, so she had to take out a separate travel insurance policy costing about $50 for a six-day trip.

Zoom Travel Insurance director Natalie Ball said policyholders “need to understand what they are covered for”.

“A big thing people get caught out on is medical conditions. Often credit card travel insurance will cover less conditions than a stand-alone policy,” she said.

“If you have any medical conditions outside of the card’s list, you are simply not covered.”

Insurance Council of Australia spokeswoman Lisa Kable said there was one simple way to work out if you should use credit card travel insurance.

“Choosing whether to use credit card travel insurance or a stand-alone policy comes down to answering one question, does the card’s travel insurance cover everything you plan to do,” she said.

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@sophieelsworth