So-Called Free Credit Card Travel Insurance verses Paid Insurance Policies
Plenty of credit card companies offer travel insurance as one of the benefits for cardholders. Before you rely on credit cards for travel insurance, it's very important to read through the benefits. Here's why:
- Not enough choice: Credit card travel insurance is an inflexible product that does not include many options that travel insurance should. The insurance may be "free" but will it have the cover you need?
- Most of the benefits apply to the card holder only.
- Excesses can be high, which means "free" insurance really can actually cost you more than paid insurance.
- Fewer options: Credit card travel insurance may not include items like replacement of wardrobe or travel insurance cover for laptops. Again, free could cost you more!
- Smaller support network: Credit card travel insurance rarely offers a Freecall number in multiple countries or reverse charges numbers to make a claim.
- Do you know what you are getting? Credit card travel insurance often starts the first time you use the card, at which time you are held to have agreed to all of its terms and conditions which are usually buried in the documentation that comes with your credit card. Unless you pay lots of attention to the documentation that comes with your credit card, you could find yourself agreeing to insurance that is not right for you.
10 Reasons to Purchase Travel Insurance
There are hundreds of circumstances that could cause you to cancel your trip, return home early or force you to seek emergency medical treatment while traveling.
To demonstrate the importance of purchasing travel insurance, and emergency travel services, here are 10 common examples of what could go wrong.
- It's 10 p.m. and you and your immediate family arrive at the airport for a connecting flight, only to find that your flight has been cancelled. Who can assist you with finding new flights to get everyone home?
- Your bag was lost with your insulin inside. You need help to locate your bag as soon as possible and have your emergency prescription filled. Who do you call?
- Your first visit to Canada, and your passport and wallet are stolen. Where do you turn for emergency cash, and how will you get your passport replaced?
- You're involved in an accident and adequate medical treatment is not available. Who will help arrange and pay for a medical evacuation?
- If your sister-in-law becomes seriously ill and you must cancel your trip, what happens to your non-refundable deposits or pre-payments?
- You arrive in Ecuador and your luggage doesn't. If it's lost, who will help you find it? If it's delayed, who will pay for your necessities? If it's stolen, who will pay to replace it?
- Your cruise line, airline or tour operator goes bankrupt. Who will pay for your non-refundable expenses? Who will help get you to your destination?
- You're walking down a street in NYC and twist your ankle. Who can help you find an English-speaking physician?
- Three weeks before your scheduled arrival, a terrorist incident occurs in the city to which you are planning to visit. Who will pay if you want to cancel your trip?
- You are at a beach resort in Mexico, and you are forced to evacuate due to an approaching hurricane. Who will help you evacuate and who will reimburse your lost vacation investment?