Should I get a paid Travel insurance policy?

[ffhound]

Hi everyone

I am going to Europe for 4 weeks in June and am contemplating getting a paid travel insurance policy.
I have an ANZ travel adventures credit card and a Westpac Altitude credit card and have qualified for the free travel insurance on each of these cards.
Would the combination of these free travel insurances be sufficient for my trip or us there some advantage to paid insurance policies that I have overlooked. Both policies are with Allianz.

Thanks Peter

 

[laikanuj]

I have claimed successfully on credit card insurance for a stolen phone and interrupted itinerary which left me out of pocket. However based on my experience I advise the following as it is apparent that the insurance company will try and find any reason to reject your claim, that is how they make a profit. And expect a slow drawn out handling of any claim

Keep a copy of every travel document and receipt associated with your travel, including boarding passes and full itinerary from the day you start to book your travel until you are back home. I was continually asked for more and more documentation to support my claims. You will probably have to contact travel companies or transport companies to have them provide supporting documents for your claim.

Closely examine the defined conditions associated with your claim before submitting, if it is slightly outside the defined conditions your claim will be rejected. For instance simply losing a phone will be rejected, it has to be shown that the phone was stolen. A cruise ship arriving late to make a connection with subsequent holiday disruption will be rejected unless it can be established that something like a storm or mechanical breakdown caused the delay

 

[Renato1]

Having done numerous on-line assessments for pre-existing conditions - both for paid and for bank credit card travel insurance - this $75 asseement fee that has been mentioned did surprise me.

Questions that come to mind are -
Why would anyone stick to keeping a card with that fee?
Which credit cards have that fee?
For that sort of money - do they come around and take your blood pressure?
Cheers,
Renato

 

[justin23]

I always get a separate policy because most of the CC covers are a bit on the light side with regards to things like camera gear and laptops. I also noted car excess insurance on a few cards was less than my usual paid insurance.

Certainly, if I was ever to use CC insurance I'd be checking it was activated before I went. I've read plenty of stories about people who just assume these things and that is before we get to the people who just think the Australian government is there to bail them out of paying for healthcare overseas. Don't get me started on people setting up crowdfunding pages to pay for their medical bills due to not having insurance and the idiots who donate to them.

Also, CC insurance really isn't free, its what those annoying annual card fees are for, even though you can avoid them

 

[2infinity]

You really need to read the PDS of any insurance whether paid or through CC. I've had no concerns using my CC insurance when travelling. I've just made sure I meet all the criteria and keep all documentation. But this goes for non-CC insurance also. All insurance companies will do their best to NOT pay you if they can.

I've just booked flights in February 2020 to UK. Wouldn't have a problem using my CC insurance, except I'll be recycling my CC for a new FF Bonus with a new Bank before I go, so will no longer hold that CC. No cover if I've cancelled the CC. Shoot. Forced to buy separate insurance for that trip. TID is usually pretty inexpensive.

 

[theblank]

So many myths about CC Travel insurance.

- a person should read the PDS for all insurance that they are taking up, free, paid, gift, regardless to check that it covers their needs.
- pre-existing conditions are often not covered by paid insurance either.
- the CC insurance is provided by the same companies that you would buy the insurance off, the terms, exceptions etc, are pretty much the same, aside from very minor details.
- CC insurance cover amounts is generally equal to basic/intermediate cover if you make the comparisons,
- when claiming, you are dealing with the insurer, it makes no difference whether the policy is free or you paid for it.
- if any insurer is trying to avoid paying the claim, it makes no difference whether the policy is free or you paid for it.

I had a very good outcome from my free insurance through ANZ last year (forget the insurer) for disruption of trip due to Hurricane Florence. They paid out heaps of stuff that I thought they wouldnt due to flimsy circumstances and evidence. They even paid for $50 a day incidentals with no proof at all. There was absolutley no attempt to avoid paying out.

 

[SOPOOR]

My last couple of experiecnes with travel insurance, you need to be careful to see if you are covered, as in my case they had speicific conditions

eg partner cover included or not
you had to buy at least 90% of your airfares with that card etc
you had to have a return ticket,

quite a stressfull experience

 

[jch]

Remember you need to spend ~$300 (double check) on your Travel Adventures card for hotels or flights before you leave before the cover is activated.

Would generally rely on the card insurance unless its in a "tricky" place such as a trip I have planned next year for USA/South America.

Got my claim processed by Commbank's Cover More insurance on a recent $550 flight change on SQ due incoming flight delay on EY (less $250 excess).

 

[William Gillespie]

Hi everyone

I am going to Europe for 4 weeks in June and am contemplating getting a paid travel insurance policy.
I have an ANZ travel adventures credit card and a Westpac Altitude credit card and have qualified for the free travel insurance on each of these cards.
Would the combination of these free travel insurances be sufficient for my trip or us there some advantage to paid insurance policies that I have overlooked. Both policies are with Allianz.

Thanks Peter

My Flight Centre travel agent told me a true story. A man came in and booked an expensive business class holiday to Canada to have a few weeks of skiing. He was offered travel insurance for about $450. and declined, and said he was relying on his credit card insurance - in this case via Amex Platinium. On the slopes he had an appendicitis attack, had to be airlifted to hospital, cancel flights and hotel, etc; and was in hospital for some days, as he had ignored the early symptoms of the attack. He contacted the insurance company and his credit card limit was raised to accommodate the $90k in overall costs associated with the hospitalisation, trip cancellation costs and new purchased business class fare home. The problem was that the insurance company and the Canadians took ten months to sort out all the paperwork and costs associated with the accident. So although he did indeed get the travel insurance coverage as advertised, it cost him $21k in interest payments on his card to carry the debt for nearly a year whilst the insurance rigmarole continued. - William

 

[Zanzara]

Yes. Couldn’t agree more about reading the disclosure notice very, very, thoroughly. Some seem to specifically cover journeys where points have been used.

The credit card companies regularly change the insurance underwriters/contractors that they use along with all the rules, terms and conditions. They will try and wangle out of paying if they can or suggest you lodge a claim with someone else. Most of the companies are the same lot that sell policies to people anyway.

Fortunately, I’ve not had a medical issue to claim for, but I’ve claimed with credit card insurance companies for stolen sunglasses & on 3 seperate occasions for bags that never showed up within 24 hours of arrival. It wasn’t an issue getting refunded as I had a PIR from the airline and receipts or a police report.

Mind you, for the misplaced bags that was only for emergency clothing and toiletries etc.

Eventually, after hassling the airline or the handling agent, bags have eventually turned up. In the case (excuse the pun) with Swiss and Qantas & British Airways the next day. Agean Airlines took many days and only made it back after returning to Oz. That was despite my phone number & email address still being on 3 tags on my suitcase.

On one incident I was advised that if the bag is completely lost and I need to make a claim for the contents, they may eventually ask for proof that I had bought clothing in the first place. So now I keep all my receipts.

I double check the policy. If I’ve complied I relax, if not, I would get a seperate policy. If you make a claim be in no doubt that they WILL ask for proof of entitlement.

 

[draper]

Ski Insurance
Credit card Insurance in the years gone by covered you for Ski Injury Insurance and it was clearly stated on the PDS
Fast forward to today and CC Ski Insurance is a very vague cover. It is no longer clearly defined.
Paid Ski Insurance Policies have almost doubled in cost in the last 18 months which may explain the vague cover for CC Ski Insurance.
In the past I always used CC Ski Insurance cover. I no longer do so and now purchase aPolicy that Clearly Defines Ski Cover Insurance.
Also most CC and multi trip Insurance Policies are restricted to a defined period of cover. Ie 90 days max.

 

[pomona]

Frankly, would you trust an insurance company, (a necessary evil), let alone one that has done a deal with a credit card company. I could have relied on my credit card in the past , BUT, always paid out for a "real" policy. Even then you have to fight tooth & nail whether it is Cerberus (the worst) or Tokio Marine. Nowadays I get an RACQ (Tokio Marine) policy with a "discount", or so it claims.
If you have trouble sleeping DO read ALL their PDS & note down relevant clauses, sub clauses & on which page they occur. Then you can quote chapter & verse over the phone which tends to influence their attitude.
As the old Arabic saying goes, (paraphrased) "They take with the right hand & give with their left".
Best of luck

 

[BorisWood]

Agreed - know the PDS.

My last trip was paid for in full be a CC which activated it's insurance; however, since I take Cholesterol medication, automatic cover for health was not available as that was a 'pre existing condition". I was covered for everything else such as delayed baggage, theft etc. .

So I took out a separate basic policy that covered me for Health issues - my condition although pre-existing was exempt.

I just re-read the PDS for ANZ policy through Allianz and in the list of pre-existing conditions which are automatically covered are high cholesterol and high lipids - "High cholesterol (Hypercholesterolaemia) High lipids (Hyperlipidaemia) ". High blood pressure is also covered provided it is stable.

ANZ only require a spend of $250 prior to the trip to activate the cover. They have a website to get a certificate of cover which can be given to tour companies who often require proof of travel insurance.

As has been stated, it is essential to read the PDS of any policy to ensure you are covered for what you need.

 

[Peregrine]

Choice gives unbiased comparisons and there are many articles that do not require you to be a subscriber. It’s always worth checking for anything you are thinking of buying.
Try the following

How to buy the best travel insurance - CHOICE

Credit cards for Australian travellers | CHOICE

Travelling overseas? Compare fees and features on credit cards from CommBank, Bankwest, Westpac and more against the best fee-free credit cards.

www.choice.com.au

In the past I have purchased stand alone travel travel insurance, but after my last trip, I compared the cover under my stand alone policy inferior to my cc travel insurance.

Choice reached a similar conclusion:

Travel insurance comparisons, information and buying guide | CHOICE

Do you need travel insurance? How much will you pay? And will you be covered if your holiday is ruined by injury, illness, lost luggage, theft, terrorism or COVID-19?

www.choice.com.au

Some push stand alone policies because there is money to be made in them.

Some cc policies are better than others - CBA has a good policy (if activated) wheras Amex policies provide limited cover and many exclusions.

Some people suggest that cc policies are inadaquate following a claim rejection - but most times they would have their claim rejected under a standalone policy

 

[Lynda2475]

CC insurance cover amounts is generally equal to basic/intermediate cover if you make the comparisons

I always get a top cover paid policy for US or South America, my Qantas Amex Ultimate and ANZ Frequent Flyer Black policies both capped medical at $1m - I want unlimited medical should something major happen, as I've understood you can burn through $1m in a US hospital in under 2 weeks.

Happy to rely on credit card insurance for low risk destination like NZ.

 

[Peregrine]

In the past I have purchased stand alone travel travel insurance, but after my last trip, I compared the cover under my stand alone policy inferior to my cc travel insurance.

Choice reached a similar conclusion:

Travel insurance comparisons, information and buying guide | CHOICE

Do you need travel insurance? How much will you pay? And will you be covered if your holiday is ruined by injury, illness, lost luggage, theft, terrorism or COVID-19?

www.choice.com.au

Some push stand alone policies because there is money to be made in them.

Some cc policies are better than others - CBA has a good policy (if activated) wheras Amex policies provide limited cover and many exclusions.

Some people suggest that cc policies are inadaquate following a claim rejection - but most times they would have their claim rejected under a standalone policy

My CBA and ANZ policies have unlimited medical cover (ie not capped) AMEX policies are capped at $2m

 

[Zanzara]

Interesting story about Flight Centre. Sounds like a bit of a nightmare! I think you are supposed to advise the CC travel insurance company as a medical issue occurs for advice. Probably one of the last things you would actually think of doing under duress, pain etc!

Saying that though, I'm afraid I would take what Flight Centre tell me with a grain or 2 of salt. Their staff get paid a commission for all travel insurance policies that they sell.

 

[Lynda2475]

My CBA and ANZ policies have unlimited medical cover (ie not capped) AMEX policies are capped at $2m

If differs per card - not all amex cards offer the same degree of cover.

 

[MEL_Traveller]

The requirement for a ticket to return to Australia is common across many policies - paid and CC.

 

[jch]

The requirement for a ticket to return to Australia is common across many policies - paid and CC.

So tickets purchased through miles wouldn’t count?

 

[MEL_Traveller]

So tickets purchased through miles wouldn’t count?

I was referring to paid or CC insurance. The requirement to have a return ticket is fairly common.

Whether or not a points ticket is covered will depend on the CC and the eligibility requirements. Some exclude points, some only cover tickets where points have been earned and used directly from the CC under which you are seeking the CC insurance (so you must have used points earned from Card A to get the award, then Card A's insurance will kick in), some will cover award tickets provided you have a minimum spend on any travel component on the card (for example ANZ's $250 spend), some will cover you regardless as long as you activate the insurance before you go.