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Want free travel insurance? Get the right type of credit card

Want free travel insurance? Get the right type of credit card

December 6, 2010

If you are planning a trip away this holiday season the last thing you want to fork out for is travel insurance, but there is a way that you may be able to get it for free.

Holiday with free travel insurance
The good news is most platinum and gold level credit cards include complimentary travel insurance when you purchase your holiday using the card.

According to RateCity there are 122 cards with free travel insurance built-in. Out of those, 69 also include free travel accident insurance, which covers you if you are involved in any sudden or unexpected accidents that result in injury. And 66 offer free travel inconvenience insurance which will cover you if your flight is delayed or you are inconvenienced.

The level of cover will vary between institutions, according to the travel insurance company they use. For instance, the maximum number of days of free travel insurance available can range anywhere from 62 to 365 days. And the maximum amount of accident insurance you can receive (depending on your claim) can range from $100,000 up to $775,000.

But be aware that there are usually terms and conditions attached in order to be eligible. For instance ANZ‘s Frequent Flyer Platinum Amex card only offers travel and medical insurance to permanent residents of Australia travelling overseas and who paid at least $250 for travel arrangements using their Platinum card prior to departing. They also need a return ticket to Australia within six months of departure and be 80 years of age or under.

How can I get one?
If you have a gold or platinum credit card you may already be eligible for free travel insurance so call your institution and find out. However, if you don’t have one and you travel overseas at least once a year, it could be worth considering these types of cards. Compare credit cards online to find one that offers a low interest rate and the right type of travel insurance.

Gold and platinum credit cards usually come with an annual fee but it may still be worth the cost if you can leverage from the cost of travel insurance. For instance, RateCity discovered that travel insurance premiums can cost between $52 and $493for a single person aged under 40 years old, to travel to America for two weeks. The average annual fee on the other hand, for over 130 platinum and gold cards monitored by RateCity, is $130.

Not only can you reduce the cost of your trip with a credit card that offers travel insurance but you can also get peace of mind knowing you are covered when you need it most.

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