This type of insurance is designed to protect you when you go overseas, covers things like lost luggage, theft or loss of personal belongings, trip cancellation, medical expenses and more. A lot of credit cards come with international travel insurance as a complimentary extra when you use your credit card to make travel bookings.
The coverage and conditions of complimentary travel insurance varies, with some policies covering only the cardholder, and others extending to partners and family members. Some credit card issuers may also require you to activate your insurance policy before you go overseas, so it is important to check the specific requirements outlined by your credit card provider if you want to benefit from this feature.
Case Study: Masashi’s Travel Claim
Masashi has been on a two-month group tour through Europe, which he booked using his credit card. He is all set to leave when a huge snowstorm sweeps across the region and grounds all the flights. Masashi is stuck at the airport indefinitely, missing all his connecting flights and other travel plans.
He calls his credit card insurance provider and explains the situation. They refer him to the claims page and recommend that he keep a record of all the costs relating to the travel delays, including rebooking fees and accommodation.
Masashi uses his credit card to pay for several nights in a hotel and sorts out his flights back to Australia as soon as the weather clears, making sure he has receipts for everything. When he gets back to Australia, he fills out a claim form and includes:
Masashi’s claim is approved in 10 working days, and the cost of his expenses is transferred to his credit card account after that.
REMEMBER: You still have to pay the excess required when you make a claim using complimentary international travel insurance. Check the insurance policy to find out how much each excess costs before you travel, so that you know how much you will be out of pocket if you make a claim.