Find out which cards offer interstate flight inconvenience insurance and how it may benefit you.
Interstate flight inconvenience is an incentive offered by credit card companies to their gold and platinum cardholders.
At its core it covers eligible cardholders for flight delays, flight cancellation, delayed luggage and lost or damaged items. The policy becomes effective once you leave your home for the airport until you return home. Generally speaking these policies cover trips of between 7 - 14 days.
How does complimentary interstate flight inconvenience insurance work?
Many credit card companies offer interstate flight inconvenience insurance as a perk to their cardholders. Cardholders are usually covered for 7 - 14 days by this policy when they go to another Australian state. This insurance will only take effect if they use their eligible credit card to pay for 100% of the cost of the return air ticket. The coverage also applies to the cardholder's spouse and kids if they go on same trip and if their tickets have been paid using the same credit card.
To illustrate the various features of interstate flight inconvenience insurance, we've analysed two credit card providers for comparison:
St.George offer interstate flight inconvenience insurance on the St.George Vertigo Platinum Card. Here's what you can expect out of this type of insurance.
- Trips of up to 14 days covered
- Flight delays. If your flight is delayed for four hours and if no alternative means of transport was provided, you will receive compensation for food and refreshments. The maximum you can receive for this is $100.
- Baggage delays. If your baggage is delayed by more than 12 hours, you can receive $75 per person to purchase clothes and necessities, up to a maximum of $250.
- Lost or damaged items. If your items are accidentally lost, damaged or stolen during the trip (excluding electronics), you can get compensation. Cardholders can receive up to $500 per item and a maximum of $1,250.
- Funeral costs. In the event of accidental death during the trip, funeral costs such as the expense of transporting your remains or the cost of cremation/burial will be covered. The St.George Platinum covers $2,500 per person up to a maximum of $5,000.
- Cancelled holiday. St.George offers compensation if your trip was cancelled for unforeseen reasons including if a travel companion dies, is seriously injured or becomes seriously ill.
The Commbank Platinum Awards Card
The CommBank Awards range of cards also provides complimentary insurance depending on what card you have. The Commonwealth Platinum Awards offers interstate flight inconvenience insurance which works similar to the above policy but with different claim limits and restrictions.
- Trips of up to seven days covered
- Flight delays. If your flight is delayed for four hours and no alternative means of transport was provided, you will receive compensation for food and refreshments of up to $35 per person, up to a maximum of $100.
- Baggage delays. If your baggage is delayed by more than 12 hours, you can receive $150 per person to purchase clothes and necessities up to a maximum of $450.
- Lost, stolen or damaged items. If you accidentally lose or damage personal items during the trip, or they're stolen, you can get compensation. This is limited up to $750 per item up to a maximum of $1,500 per trip.
- Funeral costs. In the event you die accidentally while on your trip, Commbank pays for funeral expenses of up to $2,500 per person, up to a maximum of $7,000.
- Cancelled holiday. Commbank offers compensation if your trip was cancelled for unforeseen reasons. The list of factors includes:
If you or any of your family members:
- Suffers serious injury
- Become seriously ill
- Pass away
- Are placed under quarantine
- Receive a subpoena
- Are made redundant
- Have your home completely destroyed
As you can see, the amounts offered under each policy are almost identical bar the length of the trip supported and the amount of cover received. In fact in many cases this insurance is offered by the same provider - QBE, which explains why this is the case. With this being said if this is a policy you would use you should compare the cover given.
Comparison of credit cards with interstate flight inconvenience insurance
Rates last updated December 9th, 2016.
- American Express Qantas Ultimate Card
New offer of 100,000 bonus Qantas Points + extended 0% for 12 months BT offer until 30 January 2017
November 15th, 2016
- American Express Explorer Credit Card
100,000 bonus points and balance transfer offers have been extended until 30 January 2017.
November 29th, 2016
- ANZ Frequent Flyer
25,000 bonus points extension with $2,500 minimum spend + annual fee waiver for the first year.
November 29th, 2016
How to compare credit cards with interstate flight inconvenience insurance
- Cover limits. If you are checking to see the cover you receive for interstate flight inconvenience, it's important to look at the cover limits of different credit card providers. For example, the amount of money you'll be given for a lost/damaged item can range from $550 to $3,000 depending on your provider and the type of credit card you have.
- Annual fee. It is important to compare these types of credit cards based on their annual fees because higher annual fees may reduce the value of these types of perks. There are instances when the annual fee is waived for the first year.
- Interest rates and interest-free days. If you intend to keep a balance on your credit card, choosing a provider that charges low interest rates is particularly important. Many companies also offer interest-free days of up to 55 days on new purchases when you pay off the last closing balance.
- Promotions. Credit card companies regularly run promotions such as 0% balance transfers, cash backs, and price guarantees on eligible purchases.
- Other perks. Credit cards that offer interstate flight inconvenience insurance usually provide other perks such as complimentary travel insurance and concierge service.
What are the pros and cons of these types of cards?
- Free insurance policy. Flight inconvenience insurance is essentially a perk offered by credit card companies to attract clients. The true savings given by this card will depend on what you claim for.
- No extra out-of-pocket expenses for flight inconveniences. You will receive compensation for flight delays, cancellations, and lost items.
- Coverage for your family. Provided that you paid for your spouse's and dependent children's air tickets using the same credit card, they are also usually covered by this policy with no questions asked. Be sure to check the policy document first.
- Online booking surcharge. To activate the policy, you need to pay using your credit card. Most airline companies charge an online booking fee.
- Maximum coverage limit. This policy may not cover all costs associated with delays or loss of baggage.
- Not valid for extended holidays. If you're travelling for long periods of time this insurance won't apply, as most are limited to 14 days.
Frequently asked questions about complimentary interstate flight inconvenience insurance
Does this insurance apply to extended family members?
The coverage only applies to you, your spouse, and dependent children.
Am I eligible for this coverage even if I travel frequently (more than once each year)?
Yes, but the exact number of times you are covered for depends on your credit card provider.
How can I make a claim if my flight is delayed or cancelled?
You generally need to call the insurance provider to make a claim.