Your flights are booked, your tours are organised and now all that’s left to do is pack. In all the excitement of getting ready for a well-earned holiday, travel insurance can often be an afterthought. Some people prefer to take out a standalone policy while others people go with the easy option of going with the travel cover through their credit card. However, there can be issues if you go with this option which is why there has been a call for an overhaul on the system.
Overhaul on credit card travel insurance
A review by the Australian Securities and Investments Commission (ASIC) has led Allianz Global Assistance to call for an overhaul of the way travel insurance is provided by credit cards.
Following ASICs review of 17 credit cards brands, credit card issuers and insurers have agreed to improve disclosure on travel cover following customer complaints and disputes relating to credit card travel cover. When it comes to travel cover attached to credit cards, the conditions between the various issuers can vary and are often difficult to understand.
Allianz Global Assistance National Manager Banking and Finance Linda Avery has stated that a redesign is necessary so customers are clear on eligibility for cover and benefits. It is hoped that improved transparency will reduce complaints and issues at claim time. For example, credit card travel insurance generally doesn’t allow for pre-existing medical conditions to be taken into account which can be a major issue when it comes to making a claim and this can come as a nasty shock after coming back from holiday. Of course, this depends on the credit card you’re using which is why it’s important to read the fine print.
Look at your options
Unfortunately, a lot of people find out too late at claim time that the travel cover they have through their credit card is limited. If you decide to go with travel cover through your credit card, don’t just assume the cover in place will have all the conditions you need as the cover is often quite basic. Look at your options and have a chat to your insurance broker who can advise you on the conditions you’ll need on your policy. Make sure you let your insurance broker know where you’re going and anything specific you want cover for.
Although travel cover through your credit card may seem easy, you may be better off getting a separate travel insurance policy to ensure peace of mind. If you still want to get travel cover through your credit card company, look into paying for extra necessary additions so you have more comprehensive coverage in place. The last thing you need is to come home after a holiday only to find your travel cover doesn’t cover you after you’ve made a claim.
The information above is of a general nature only and you should discuss your specific needs with your insurance broker. Contact Elliott Insurance Brokers on 1300 635 315 for advice about travel insurance or a fast quote.