Take advantage of a credit card with complimentary transport accident insurance and protect yourself and your family while travelling.
People who travel and spend a lot of cash paying for transport insurance will be pleased to note that they can cut down on the insurance costs they incur by taking advantage of their credit card's complimentary transport insurance policies.
Complimentary transport insurance, also referred to as credit card transport insurance, is a type of insurance cover offered by some credit card companies against accidents that may result in bodily harm or death when they are passengers in licensed buses, trains or flights.
The policy will pay the card holder or their family benefits in case of injury or death, provided the person paid for the transport using the credit card. As the term implies the insurance generally only covers commuters for accidents that actually happen inside a transit vessel or while you are boarding or alighting.
How does complimentary transport accident insurance work?
In order to benefit from the complimentary travel insurance offered by credit cards, a cardholder must have an eligible card and will generally have to pay for the trip using the credit card.
You should also note that this isn't complete travel insurance - it will only protect you while you're being transported on a licensed plane, bus, train or ferry.
Depending on a commuter's credit card, the complimentary travel insurance will have different types of conditions, policies, exclusions and amounts of cover. ANZ's complimentary transport accident insurance policy for instance pays up to $750,000 for accidents resulting in death and $350,000 for serious injuries.
Other card providers will set different limits and might place other restrictions on the cover given, so to get the perfect deal you'll have to compare the various credit card company policies. It is also important that you note exactly what credit card travel insurance will safeguard you against before you decide to make it your only policy when travelling.
Types of credit cards that benefit from complimentary transport accident insurance
Gold, platinum and black credit cards are typically where you'll find this type of feature offered. These cards are generally more expensive than basic cards, so be sure to get the great value out of them by learning how to compare them below.
As mentioned above the amount of cover can vary wildly between each card provider, even though many of them use the same insurance provider. You'll want to compare the policy documents for each card you're comparing before making a decision.
How to compare credit cards with transport accident insurance
Every consumer's goal should be to stretch their dollars as far as they can go and to milk as much value from them as possible. This applies when you are searching for a credit card which offers transport accident insurance. Here are a few factors that you should put into consideration when comparing credit cards:
- Cover limit. Different credit cards will have different transport accident insurance cover limits. Check the period the cover will be applicable for and what it covers. This should give you a clue as to which one to pick.
- Annual fee. Platinum and especially black credit cards can have annual fees that amount to a small fortune - there's no secret about it. However, the perks you receive may outweigh the fee you pay, do some calculations and work out the savings these perks would net you over the course of a year compared to the fees you'll pay.
- Promotions and rewards. Another important factor to consider when comparing credit cards is if there are any promotions and rewards a company gives their premium customers. These may take the form of promotional balance transfer or purchase rates or rewards programs with bonus points on sign up. You'll need to take into account the potential value these will give you.
- Interest rates. One way to compare these cards is through the interest rates you'll be paying. If you avoid paying interest you may want to compare cards based on the number of interest free days they offer.
Pros and cons of credit cards with complimentary transport accident insurance
Some credit cards will come with complimentary transport insurance attached to them, but are they worth it? Weighing the advantages and disadvantages of relying on this type of insurance will help you make an informed choice.
- Free insurance. Think about it. You are being insured for simply using your credit card. This is more than you can ever bargain for from many insurance companies.
- Saves you time. Dealing with insurance brokers every time the need to travel arises may not be your cup of tea. Complimentary transport accident insurance will activate automatically.
- Complimentary transport accident insurance is not comprehensive. You should be wary of what your complimentary travel accident insurance covers. Failure to do so could mean you're not actually covered.
- Applies only when you pay for transport using the credit card. Using your credit cards for transport might attract some surcharges that you'll want to avoid. Also remember most credit cards will change a foreign transaction fee if used to pay for anything overseas, so this may over time reduce the value of this perk.
Frequently asked questions about credit cards with transport accident insurance
Why do I need travel insurance?
Travel insurance of any kind can provide financial cover in the event an unforeseen occurrence arises while you're travelling, such as injury, illness or death.
Does my complimentary transport insurance also apply to my family when we are travelling together?
This will depend on the policy. In most cases, it is extended to your spouse and dependant children travelling with you, so check the policy documents.
Is there anything that this type of policy won't cover?
In general, complimentary transport accident insurance won't cover losses or fatalities as a result of terrorist attacks, war, suicide, criminal acts, radioactive contamination and similar occurrences. Again, check the policy documents.
How do I make a claim?
To make a claim for this type of policy, you'll need to call the insurance provider.
Do I need to travel with all my documents to benefit from the insurance?
With credit card insurance it's wise to travel with documents which show proof that you're eligible. These generally include proof that you purchased your transport tickets using your credit card.