Travel insurance

[significance]

I'm planning an around-the-world trip, so I decided to compare the travel insurance offered with my two credit cards: The American Express Ultimate Qantas (AUQ) card and the Westpac Earth Platinum Plus (EPP). The direct-from-Amex card comes out of the comparison looking totally inadequate. I thought this quick comparison might be useful for others. I may have made some minor errors in the details, but in overview, it is striking how different they are.

Requirements to be covered are the same for the two cards.
The AUQ does not cover countries under embargo by the UN, which does affect my trip.

Max. duration of coverage:
AUQ: 30 days/year
EPP: 90 days/year

Excess for medical claims:
AUQ: $250
EPP: $200

Coverage limits:
Emergency clothes and toiletries in the event of delayed luggage, missed connections, etc:
AUQ: $200
EPP: $1250 per family
AUQ kicks in when luggage is delayed by more than 48 hours, EPP kicks in after only 12 hours.

Lost or stolen baggage:
AUQ: $10000
EPP: $30000

Lost or stolen mobile phone:
AUQ: $250
EPP: $3500

Laptop:
AUQ: $2500
EPP: $5500

Extra nights of accommodation when needed due to delays and mishaps:
AUQ: $150/night
EPP: $1000

Resumption of journey after emergency interruption:
AUQ: $3000
EPP: $12500

Personal liability:
AUQ: $2M
EPP: $2.5M

Rental vehicle excess (overseas):
AUQ: not included
EPP: $5500

The only place the Amex comes out ahead is in compensation for loss of life or limb. That settles it: I'm cancelling the card before my next annual fee falls due.

 

[stusxr5]

A very useful analysis of the two cards. My only query would be whether most peoples justification for having a particular credit card is not related to the benefit of 'free' travel insurance but other things like a 'free' flight, points, or just in general, it being handy having a credit card?

I think ultimately, it is a benefit having a mix of credit cards to suit requirements (not everyone takes Amex), but for travel insurance, being well aware of what you are entitled (and no entitled) to when booking international travel on the credit card is important too. That all said, for the cost of a credit card, most insurance companies will cover you for a much longer period of time overseas and you get the choice!

 

[significance]

A very useful analysis of the two cards. My only query would be whether most peoples justification for having a particular credit card is not related to the benefit of 'free' travel insurance but other things like a 'free' flight, points, or just in general, it being handy having a credit card?

I think ultimately, it is a benefit having a mix of credit cards to suit requirements (not everyone takes Amex), but for travel insurance, being well aware of what you are entitled (and no entitled) to when booking international travel on the credit card is important too. That all said, for the cost of a credit card, most insurance companies will cover you for a much longer period of time overseas and you get the choice!

Agreed. In my case, the travel insurance is part of my calculation in deciding to get a card, but not the only factor. Reward points are important, the annual fee is important, but the free flight I have found I usually do not use in practice, because of all the restrictions on its use.