Free Travel Insurance
When travelling overseas it is important to have travel insurance and the good news is that some credit cards offer free travel insurance.
Most gold and platinum credit cards include free travel insurance to eligible customers who purchase their holiday with their card.
For instance, in December 2010 RateCity counted 122 cards offering free travel insurance. In addition, 69 of these also included free travel accident insurance, for if you are involved in any sudden or unexpected accidents that result in injury. And if your flight is delayed or you are inconvenienced in some way, 66 cards also offered free travel inconvenience insurance.
There are different variations on the level of cover available and this will vary according to which travel insurance company your financial institution uses. For example, RateCity discovered that the maximum number of days of free travel insurance can range from 62 to 365 days. Depending on your claim, the maximum amount of accident insurance you can receive can also vary from $100,000 all the way up to $775,000.
So if you already have a gold or platinum level credit card you could have access to free travel insurance, if you are not sure call your financial institution and ask.
If you currently don't have one of these cards and you travel overseas quite often, perhaps consider one of these cards. To find one that offers free travel insurance and a low interest rate and compare credit cards online. The table below lists some of the current best platinum credit cards on the market.
While gold and platinum credit cards will probably have an annual fee, you could still save as it may be worth the cost if you travel frequently. For instance, RateCity found that the average annual fee for over 130 platinum and gold cards monitored by RateCity, is $130. If you compare this to the price of travel insurance, this can cost between $52 and $493 (based on a single person under 40 travelling to the USA for two weeks). Depending on how many times a year you travel, it may well be worth it.
Also be aware that there are usually terms and conditions attached in order to be eligible, so always read the product closure statement (PDS) to see if this is the right travel insurance for you.
The table below displays some of today's lowest rate credit cards on offer.