Valuing Complimentary Credit Card Travel Insurance

[MEL_Traveller]

I too take out the annual policy with Covermore. I could never trust any credit card coverage. I'd encourage people to actually read these policies. Exclusions are much more severe than you may think. You may well be covered and you may get a pay out, but I wouldn't assume this to be the case. Be informed is my advice.

I can't tell the difference between my ANZ Platinum travel insurance and a policy from one of the majors on sale in Australia. Sure, there's an excess. But the CC annual fee of $79 makes up for that. The CC insurance comes with a whole range of benefits only associated with the more costly versions of fully purchased insurances, such as car rental excess. Importantly, it covers passengers who have booked travel before their 81st birthday. This has saved my parents thousands of dollars compared to the hefty premiums for 'seniors' on standard offerings.

General exclusions applying to ANZ seem to be pretty much same same as all the others. Scuba. Riding a motorcycle. Dangerous sports.

 

[Deleted member 29185]

Is Scuba written out of most? We're doing a scuba course in September.

 

[theblank]

I can't tell the difference between my ANZ Platinum travel insurance and a policy from one of the majors on sale in Australia.

It really is a myth that 'if its free, the claims dept will make it harder for us ", we actually do pay for the travel insurance - its in the annual fee, and naturally of course the Bank pays a blanket premium to the insurer.

I too have compared CC with retail policies and my experience was they were pretty much like for like, and absolutely never a 'lesser' product. the only reason I could see to want to pay for a retail policy is if I needed the Premium versions. Of course there are minor varations but no different then what we normally see between different insurers, whether free or retail plans.

If someone wants to point out a serious omission or exclusion in CC TI's when compared to Retail Basic or Standard then I would be very grateful, and not to mention they would probably get an MBE or something for saving us all from the evil bankers/insurers

 

[theblank]

I've always had a very uneasy feeling about CC TI policies and therefore opt for Allianz as back up.

Do you realise that Allianz underwrites the Travel Insurance for several Credit card companies. The policy wordings are not going to be any different for the most part and their claims 'integrity' will be the same.

 

[travelislife]

On a lot of CC TI policies you can get an actual certificate with the insured names, trip duration, etc. This will have the emergency numbers etc and the policy number. Very handy. I am doing exactly this through NAB platinum card which is through QBE.

 

[Peter D]

Is Scuba written out of most? We're doing a scuba course in September.

Scuba diving is usually not excluded if you hold an open water licence OR are under a qualified instructor. I.e. Westpac and and ANZ policies.

But always check the exclusions clause in your policy disclosure statement to be sure.

 

[moa999]

Scuba often has depth limits as well (but within the standard rec 30m limits, and frankly you generally don't want to be deeper)

 

[Renato1]

"$1117 for our trip to Europe" Wow that seems very excessive!

It's for an 11 week trip, and we're over 60.

That said, I just checked RACV and it quotes $986 for non members and $838 for Bronze Members.

Valuations are kind of tricky, are they not?
Regards,
Renato

 

[JohnK]

For the time being I'm quite happy paying ~$400/year on comprehensive travel insurance as I don't have a fancy credit card.

I'm not even sure if comprehensive travel insurance will cover me as some of my trips are one-way point bookings with various airlines, some return bookings ex-Australia, some return bookings ex-Asia, one way revenue bookings from anywhere and various bookings throughout Asia.

Regarding credit card travel insurance @serfty had some issues a few years ago.

 

[Renato1]

The CC insurance comes with a whole range of benefits only associated with the more costly versions of fully purchased insurances, such as car rental excess..

Don't forget - as I asked about in my question on the Question Forum - that car rental excess cover is not the outright excess cover that I suspect most people think it is. Instead it's excess cover on the oustanding excess after one has taken out excess cover on a rental car.with the rental agency.
Regards,
Renato

 

[serfty]

Regarding credit card travel insurance @serfty had some issues a few years ago.

No specific issues; but for me since one trip can consist of half a dozen bookings paid on several possible cards, CC based insurance is dead to me.

 

[Renato1]

Given the number of people responding here to using Complimentary Credit Card Travel Insurance, the other interesting question associated with valuing it is who is actually paying for it?

Assuming Travel Insurance purchased directly from the insurance companies is a fair price for the products being offered, then plainly the frequent travellers here are getting an amazingly good deal relative to direct purchase of the policy. Also banks would ultimately have to pay the insurance companies something approaching their retail fee for direct purchase, but with a discount for volume - else the Travel Companies would go broke. I can't see how the card annual fee pays for Travel Insurance, nor how the money put through the card pays for it for most people (especially if points are earned on those transactions).

I could speculate that perhaps other fee-paying people with such credit cards, who don't travel much, are subsidizing the frequent travellers with their annual fees. But then again, looking at American Express, it seems to offer back to most customers of cards with Complimentary insurance a Travel Credit of around the same amount as the annual fees paid - so how are they funding the Travel Insurance?

I suspect we can thank shareholders of the organizations for ultimately funding our cheap insurance.
Regards,
Renato

 

[TheRealTMA]

Don't forget - as I asked about in my question on the Question Forum - that car rental excess cover is not the outright excess cover that I suspect most people think it is. Instead it's excess cover on the oustanding excess after one has taken out excess cover on a rental car.with the rental agency.
Regards,
Renato

Not quite. That depends on the specific credit card T&Cs. For example Amex Platinum CC TI says

"Loss Damage Waiver Cover Provides cover for loss or damage to a Rental Vehicle. Up to: • $125,000; or • the value of the Rental Vehicle; or • the value of the claim; whichever is the lesser Any one (1) accident or occurrence and a maximum two (2) claims per three hundred and sixty-five (365) days"

 

[Renato1]

Not quite. That depends on the specific credit card T&Cs. For example Amex Platinum CC TI says

"Loss Damage Waiver Cover Provides cover for loss or damage to a Rental Vehicle. Up to: • $125,000; or • the value of the Rental Vehicle; or • the value of the claim; whichever is the lesser Any one (1) accident or occurrence and a maximum two (2) claims per three hundred and sixty-five (365) days"

Thanks, but I can't find that in the T&Cs of Platinium Edge Card, the Platinum Reserve Card or the Platinum Rewards card. In fact, I can't find anything to do with Rental Vehicle Excess in any of them either.
https://web.aexp-static.com/au/content/pdf/cardmember/platinum-edge-card/Platinum_Edge_Insurance.pdf
https://secure.cmax.americanexpress...l/shared/files/Platinum_Rewards_Insurance.pdf
https://www.americanexpress.com/au/content/pdf/insurance/platinum-reserve-Insurance.pdf

What am I missing please?
Cheers,
Renato

 

[TheRealTMA]

Thanks, but I can't find that in the T&Cs of Platinium Edge Card, the Platinum Reserve Card or the Platinum Rewards card. In fact, I can't find anything to do with Rental Vehicle Excess in any of them either.
https://web.aexp-static.com/au/content/pdf/cardmember/platinum-edge-card/Platinum_Edge_Insurance.pdf
https://secure.cmax.americanexpress...l/shared/files/Platinum_Rewards_Insurance.pdf
https://www.americanexpress.com/au/content/pdf/insurance/platinum-reserve-Insurance.pdf

What am I missing please?
Cheers,
Renato

Try https://www.americanexpress.com/au/content/pdf/insurance/PlatinumInsurance1November2017.pdf

and The Platinum Card Benefits | AMEX Australia

 

[Peter D]

No specific issues; but for me since one trip can consist of half a dozen bookings paid on several possible cards, CC based insurance is dead to me.

The various components of the trip do not have to be on the same card.

All you need is for the minimum spend on one card that is required to activate the insurance which will apply to the whole trip, however it was paid for.

In fact if you use several cards you may have multiple layers of insurance. On my last trip I was covered by three CC policies.

 

[serfty]

The main card I use requires the entire return fare be put on it. Since most of my international journies are composed of one-way awards from different sources it becomes far too complicated. e.g. MEL-LAX using Velocity points, return on QF points.

In fact if you use several cards you may have multiple layers of insurance. On my last trip I was covered by three CC policies.

Never provide an underwriter that information should a claimable event occur - otherwise you will probably come across issues such as "shared risk" and the like as they (each) try to reduce their exposure to your claim.

That's one of the reason CC based insurance is dead for me.

 

[ozjuice]

Do you realise that Allianz underwrites the Travel Insurance for several Credit card companies. The policy wordings are not going to be any different for the most part and their claims 'integrity' will be the same.

The problem is that with a CC policy you have to really scrutinise the T&C's depending on what you want. So if you want to go hiking even, you may not be covered. Scuba generally is not covered regardless of depth or license. In fact, no license no cover. They are always looking for a reason NOT to pay you.
The other factor with CC insurance is checking which part of your trip you have paid for with the CC and if that fits their T&C's for the cover.
For the sake of $120.00 I generally get a cover to suit.

 

[Renato1]

Try https://www.americanexpress.com/au/content/pdf/insurance/PlatinumInsurance1November2017.pdf

and The Platinum Card Benefits | AMEX Australia

Thanks - I was getting confused between The Platinum Card and any old Amex platinum card.

That is certainly a great benefit for peace of mind - though it would be useless to me because of the 31 day limit applicable to the rental period, since I typically hire it for 10 or 11 weeks in Italy.

Which raises the question, is there any Rental Vehicle Excess Cover or Loss Damage Waiver on the other Amex Platinum cards I've linked to above? Unless I've missed it, it makes those cards pretty poor for travel insurance. (not that it matters much for me, because they won't cover my pre-existing conditions anyway).
Regards,
Renato

 

[Thrawn]

I've yet to see any credit card travel insurance exclude recreational scuba diving