Want protection against accidents on your next trip? Compare credit cards with transit accident insurance.
Unforeseen accidents and setbacks can make or break a good holiday. Be prepared and organising a credit card that comes such complimentary insurance, such as transit accident insurance, could help save you from unwanted hassle if you do find yourself confronted with an emergency situation while on holiday.
To find a card with transit accident insurance, use the resources provided on this article to form your own informed decision and discover the options that most suit your financial needs.
What is Transit Accident Insurance?
Credit card transit accident insurance protects cardholders against accidents that may result in bodily harm or death when travelling in licensed buses, trains or planes.
Credit cards with transit accident insurance usually cover the cardholder or their family in the case of injury or death, provided the person paid for the transit using the relevant credit card. As the name implies, the transit card insurance generally only covers travellers for accidents that occur inside a transit vessel or while you are boarding or alighting.
This type of card is suitable for frequent travellers or have to fork out for this type of insurance regularly. A credit card with this type of protection can save you money while providing peace of mind.
Comparison of cards with Transit Accident Insurance
How does a credit card with transit accident insurance work?
For you to benefit from credit cards with transit accident insurance, you must have an eligible card and must pay for the trip you are about to make using the credit card.
It's also important to note this isn't complete travel insurance; you will only be protected while you're travelling on a licensed plane, train, ferry or bus.
Credit card providers will use different insurance providers, so it's ideal to look at the Product Disclosure Statement (PDS) first before making any decisions about which card is better.
Types of credit cards that come with transit accident insurance
Credit cards that offer transit accident insurance are often positioned on the premium side of the spectrum. For example, this cover is often offered through gold (and above) cards, meaning you generally pay more for the privilege of this complimentary insurance policy.
In most cases, if the card has transit accident insurance, it'll also offer complimentary travel insurance and purchase protection, but again check with the card provider first.
How to compare credit cards with transit accident insurance
When searching for a credit card with transit accident insurance, your main aim should be to get the perfect deal out of your card. You can achieve this by considering a number of factors while comparing your credit card options. Some of the features you may want to keep an eye on include:
- Annual fee. Some platinum and black credit cards have annual fees that amount to a small fortune. However, the perks you receive when using these cards may outweigh the annual fee you pay. You need to carry out some calculations to find out if the perks you'll receive over the year by using the card will equal or outweigh the annual fee you're expected to pay.
- Cover limit. Check the period the cover will be applicable for and what it covers, as this can change from card to card. This should give you a clue as to which one to pick, based on how you are planning to travel and benefit from the card. The transit accident insurance providers have different cover limits for accidents resulting in death, serious injuries and minor injuries. Also be aware that in some card ranges, you may receive more cover with a platinum cover than with a gold card.
- Interest rates. You can also compare these credit cards through the interest rates you'll be paying. If you pay your balance in full each month, you may want to compare cards based on the number of interest-free days they offer.
- Promotions and rewards. Bonus points, balance transfer and purchase rate promotions and discounts on certain products or services are all some of the possible promotions and rewards on offer.
What are the perks and drawbacks of credit cards with transit accident insurance?
- Save money. A credit card with complimentary transit accident insurance will save you from organising with another provider and making regular payment to pay it off.
- Protect your family. If you're travelling with family and have paid for their travel costs on the relevant card, you can protect your loved ones in the event that they suffer an injury while in transit on your next holiday.
- Peace of mind. Although no one plans for accidents to happen, having transit accident insurance will provide you with peace of mind and reduce stress in the event an accident does occur.
- Paying for the trip with the credit card. Most credit cards that provide complimentary insurance will require you to pay for the trip using your credit card in order to receive the cover. Considering many airlines and other companies charge credit card surcharges, this can add unnecessary costs to your trip.
- Cover limitations. Some insurance providers may only provide a maximum amount of cover per accident and not per cardholder. If you have a joint credit card account, this means that if there happens to be another cardholder in the same accident, you'll receive a reduced claim amount.
- Annual fees. Credit cards that offer with complimentary insurance usually come at the cost of higher annual fees. Make sure that the benefits you'll receive from the insurance, plus other features on the card, will outweigh these costs.
What is the procedure to make a claim?
For you to make a claim for transit accident insurance policy, you will have to call the insurance provider and tell what happened. Many of these services are available 24/7.
Is it mandatory for me to travel with all my documents to benefit from the insurance?
For you to benefit from transit accident insurance, it is important to travel with documents that show proof that you are eligible. Mostly, include documents which the proof that you purchased your transit tickets using your transit accident insurance credit card.
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How do I know if I'm covered or not?
If you're not sure if you're eligible for this cover call the insurance provider who offers the policy on behalf of the card provider.
What are some of the things that this type of policy won't cover?
In most cases, transit accident insurance won't cover such losses resulting from suicide, terrorists attack, war, radioactive contamination, criminal acts and similar occurrences. However, you should check the policy documents to find out more.