Travel insurance is much like your trusty umbrella, you don't miss it until you are caught out in a storm without it. It's a necessary part of travelling and an assurance that you can enjoy a carefree holiday without having to be concerned with forking out thousands for any mishaps along the way. Because let's face it, they do happen.
The great news is that some credit cards offer free travel insurance just for being their customer. If you are a big traveller this is one timely task and expense that could be automatically taken care of for you.
How do I qualify for free travel insurance?
Most gold and platinum credit cards include free travel insurance to eligible customers who purchase their holiday with their card.
What type of travel insurance is offered?
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, at the time of writing 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 compare credit cards online.
Are there any credit card fees?
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, at the time of writing 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.
Save time and money by comparing credit cards that offer free travel insurance.