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Could credit card insurance leave you stranded?
Whether you are on a business trip in New York or on honeymoon in the Seychelles, using your credit card travel insurance could leave you unprepared for a holiday mishap. The latest buzzword seems to be ‘Free’, credit card travel insurance, but is it all it’s cut out to be?
With the doom and gloom of a current recession, more and more travellers are looking to use their credit cards to fund their holidays and pay it back later. Credit card companies are noticing this trend and are jumping on the bandwagon, and many now offer travel insurance packages to their customers as a sure way to make sales.
While the immense majority of cards offer an insurance package of sorts, whether it be accident insurance or total cover it’s still clear that credit card travel insurance tends to be extremely basic, and is often referred to as ‘Travel Accident’ cover. Which when you break it down, means that cover does not apply to you before you travel or when you arrive at your destination, it covers you only, quite literally while you’re travelling. The travel insurance package that comes with your credit card may not necessarily be the best policy for the type of trip you’re taking, so reading the small print is a must.
Jess who has been travelling extensively since her early twenties thought that taking credit card insurance seemed like a great deal as she had no intention of carrying around large amounts of Rupees in her purse on her trip to India in May 2008. So she opted for a credit card plan because it seemed to make the most sense that because her preferred type of payment would be credit card, but sadly didn’t read the fine print. Her credit card cover only extended to her losing her credit card and her belongings and not for her modes of transport.
While in India and on a trip from Bangalore to Agra to see the Taj Mahal on roads synonymous with deep set mist, her taxi driver mis-timed the overtaking distance and had to swerve sharply, heading down a bank. Leaving Jess stuck in a foreign hospital with a broken arm without adequate insurance, and leading her to pay for all the medical expenses incurred. When she phoned the credit card company she was informed that the type of cover she obtained which was mentioned in the fine print, didn’t actually cover her for injury on the trip, just for monies stolen.
Reading the small print of a card offering travel insurance is essential as you may find that you won’t be covered for a number of activities, for some modes of transport, and even when visiting certain countries. However, if you are interested in travelling with your credit card, credit card insurance isn’t your only option. We offer you a range of travel insurance options which you can customise according to your trip so that in case of a mishap you will still be safe.
So, don’t forget your travel insurance and do not rely just on credit cards or your medical aid for travel insurance as these have been rejected as inadequate by some embassies in the past. Always check your policy details to see what you are covered for. For more information on visas see: http://www.ukvisas.gov.uk/resources/en/docs/1903073/VAF1A for more information on applying for a UK visa. | 
