Are you buying travel insurance you don’t need?

If you’re planning to escape the winter chill these upcoming school holidays, there is a chance you could be buying travel insurance you don’t even need.

Mozo has found that 87 out of 201 credit cards in our database include travel insurance which often don’t just cover the cardholder but the spouse and up to two children, provided they’re still students.

According to Mozo Director Kirsty Lamont, many people are unaware that they have travel insurance as part of their credit card, which means that the typical $300-500 cost of comprehensive family cover from a travel agent could well be a waste of money.

Generally, the provider offers insurance on its high-end cards such as platinum cards but some lesser cards can also have insurance, which usually comes from the cardholder paying for part of the journey on their credit card. If this is the case, keep in mind there is often a surcharge on airfare bookings that can excessively increase the price of the tickets.

It was also found that seven of the eight card providers reviewed by Mozo, offer unlimited medical cover with the exception of Amex, which caps medical cover at $2.5 million.

Lamont says that it is really important to read the fine print to know what is covered and what is not, for example card cover is not for those with pre-existing medical conditions.

“In-built credit card insurance is great for people who are healthy, relatively young and travelling to standard rather than dangerous places and are not engaging in dangerous activities. If you fall outside of that you will need to take-out a stand-alone policy,” she says.