Does credit card insurance cover travel in Australia?

Does credit card insurance cover travel in Australia?

How low is credit card travel insurance enough for you in Australia, the facts about credit card travel insurance versus standalone travel insurance, have you noticed that almost every month there is a new letter in your mailbox that offers you a credit card? 

There is a good reason for it. Credit cards make money for banks and the companies that offer them. The dark side of all this says that Australians currently owe more than 32 billion dollars in credit card debt.

That's an average debt per cardholder of around four thousand four hundred dollars and ten cents. Now, there is no denying that plastic cards are useful for travelers. 

You may be old enough to remember the days when everyone carried a pile of traveler's checks on every trip, carefully signing them in front of some boring hotel receptionist or tour operator. 

In the 21st century, plastic cards in a global network of ATMs have done without all of that and made managing travel finances as easy as ever. However, this travel insurance isn't really free. You still pay for it in your card's annual fees. 

Because the credit card market is so competitive, providers encourage you to choose yours by offering benefits such as reward points or complimentary travel insurance. 

However, this travel insurance isn't really free. You still pay for it in your card's annual fees. Complimentary travel insurance has generally only available with high-end cards like gold or platinum and includes some stipulations that you may not have found. 

With Stand-Alone travel coverage, 54 percent of Australians are unsure whether credit card insurance offers the same level of coverage as a separate travel insurance policy. 

A survey of 1000 Australians conducted by Budget Direct Travel Insurance in March 2018 revealed some of the common misconceptions the general public has about credit cards, travel, insurance, and the level of coverage it provides to travelers. 

41 percent of those surveyed said they read the product disclosure statement in detail. 31 percent said they lived through the information, and 28 percent said they did not read the information at all. 

48 percent of the people who said they had filed a claim with travel insurance on their credit card in the last 12 months said that it was out of pocket, not including their excess, and that the insurance did not pay the full amount. 

71 percent do not realize that there are exclusions and conditions on who can claim the insurance provided by a credit card. 

Seventy percent of respondents were unaware of the condition that if they buy different parts of their vacation, such as flights or accommodation using a different card, they may not be covered for the flights or any other activity. 

Some cards also require a minimum spend on the card to qualify for insurance or travel insurance. Who needs it? Credit card, travel insurance. You've probably heard the saying if you can't afford travel insurance, you can't afford to travel. 

The cynic in you may be thinking, hey, that's just a sales pitch from travel insurance companies. But if you ask someone who has gone terribly wrong on an uninsured trip, they'll tell you it's true. Things can happen when you travel and not all of them are incredible. 

Tourism companies can go out of business overnight. Cyclones can cause vacation cancellations. Thieves can steal valuable possessions. Blizzards can land planes and destroy carefully planned itineraries. 

Accidents can happen in rental cars, on tour buses, and in hotel bathtubs. Amazing adventures can be interrupted due to illness. Checked baggage destined for Amsterdam may end up in Kuala Lumpur and emergency medical evacuation may be required. All of these potential setbacks can cost a lot of money and aggravate if you don't have travel insurance. 

Anyone who tells you that travel insurance is a luxury has probably never been in a situation where being properly insured saved the trip of your dreams. 

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