Score some free travel insurance

Score some free travel insurance

It may sound too good to be true, but it’s real! You can actually score travel insurance through a platinum credit card, at no cost. But how I may hear you ask? By choosing a platinum product with inbuilt insurance with no annual fee.

When looking to cut costs on holidays travel insurance is all too often the first cost to go, leaving many travellers, and especially young budget travellers at risk. If you were thinking about giving travel insurance a miss, inbuilt insurance on a credit card might be the answer.

Mozo researchers ploughed through the fine print of 27 premium credit cards from 8 major providers with inbuilt travel insurance to find out how they measure up and whether the insurance really has you covered if something goes wrong when you’re far from home.

It was during that study that we came across something unheard of – something truly for nothing from a credit card provider.

There are a total of four $0 annual fee credit cards offering inbuilt travel insurance at no cost and what’s interesting to know is that some of them have travel insurance offerings equivalent or even superior to premium cards that come with triple figure price tags.

Check out the kinds of travel insurance you can get with Zero “extra” spend:

Inbuilt travel insurance on $0 annual fee cards

Bankwest Zero Gold

Bankwest Zero Platinum

HSBC Premier World MasterCard

Westpac 55 day Platinum Visa

Underwriter

Zurich

Zurich

Zurich

Zurich

Purchase Rate

17.99%

17.99%

19.99%

19.59%

How much of holiday must be paid for on card?

Minimum $500

Minimum $500

90% of return overseas ticket

Minimum $500

Excess *

$250

$250

$200

$250

Who’s Covered?

Spouse and dependents up to 21

Spouse and dependents up to 21

Spouse and dependents up to 21

Spouse and dependents up to 25

Medical

Unlimited

Unlimited

Unlimited

Unlimited

Emergency Dental

$2,000

$2,000

$750

$2,000

Repatriation

Unlimited

Unlimited

Unlimited

Unlimited

Cancellation **

Unlimited

Unlimited

Unlimited

Unlimited

Total Luggage

$10000 per person, $15000 total

$20000 per person, $30000 total

$25000 per person, $40000 total

$20000 per person, $30000 total

Accommodation and travel

$475 per person, $1100 total

$475 per person, $1100 total

$500 per person, $900 total

$500 per person, $1100 total

Rental vehicle

$2,250

$3,000

$3,000

$5,500

Resumption of journey

$5750 per person, $15000 total

$5750 per person, $15000 total

$7500 per person, $14000 total

$5750 per person, $12500 total

*  (No excess payable for replacement of documents, credit cards, travellers cheques or emergency replacement of clothes and toiletries) ** Unlimited except for travel agents fees which vary by provider. Details current as at Jan 2014. Source: mozo.com.au

A quick glance at the table reveals that the most comprehensive inbuilt insurance you can get (for literally nothing) comes for free on the Westpac 55 Day Platinum Visa and all you have to do to active your insurance is use the card to pay for $500 of your trip.

Of course there are both inbuilt and stand alone policies that are more comprehensive – but as something for nothing (and provided you never have an outstanding balance on the card so as to encounter that 19.59% interest rate) you’re looking at a really good deal.

Inbuilt Travel Insurance Myths Busted – what you need to know about in-built travel insurance

1. Annual fees don’t reflect value for money. The size of the annual fee you pay has no correlation to the comprehensiveness of the policy on offer.

2. Excess will be higher. When put side by side with a stand-alone policy, inbuilt insurances come with a higher excess usually about $100-$150 more expensive ‘per claim’ than a stand-alone policy.

3. Dental coverage is limited. Inbuilt insurance policies come with limited caps on emergency dental. If you want more than $2000 in emergency dental from inbuilt insurance, choose an NAB card or a stand-alone policy. (The cheapest annual fee you can pay to score an NAB product with that policy attached is NAB’s Velocity Rewards Card with $150 Annual fee.)

4. Big ticket payouts don’t exist. You won’t find high-level travel insurance perks and cover for things like; Emergency companions, hospital cash allowances, accidental death, permanent disability, loss of income, personal liability, pre existing medical conditions and dangerous sports and activities on an inbuilt travel insurance policy.

5. You have to put some holiday spend on the card to activate the insurance. Make sure you tick the boxes to activate your travel insurance – this usually involves spending a certain amount of your travels or return flights.

6. Don’t leave valuables in your car. Personal property left unattended in a motor vehicle will get less cover.

7. Assume nothing, read your policy. Travel insurance policy fine print does tend to drag-on but its well worth taking the time to read and check the exclusions.

We expect the offer won’t last forever … but for now inbuilt insurance on a $0 annual fee card is certainly the most affordable travel insurance in town.

Score some free travel insurance was last modified: October 7, 2015 by Kerry Lotzof

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