Check on effectiveness of your credit card travel insurance

There are many different types of credit cards available in the UK these days, and in many cases these cards charge varying annual fees to customers in exchange for various benefits, one of which is travel insurance. Many customers that have credit cards that charge annual fees and offer benefits such as travel insurance cover in return assume that the travel cover provided will suit their needs if they decide to go away. However, industry experts state that his is not always the case, and that consumers need to be more vigilant to ensure that the insurance cover on their cards offers value for money and covers their needs.

In some cases these credit cards offer travel insurance cover as part of the benefits, but only on the condition that the credit card is used to purchase the flight or the holiday, which some consumers may not realize. And in other cases the travel insurance cover that is offered is very basic, which means that consumers may not have the level of cover that they need when they go away, and this could cost them dearly in the long run in the event of an emergency arising.

One Moneyfacts spokesperson reiterated the importance of checking these credit card insurance policies to ensure that they provide adequate cover for the customers' needs. She stated: "Before you travel, check the policy covers all you need. Is it worldwide or just for Europe? Does it cover an individual or your family? Does it cover winter sports? Are existing medical conditions covered? What are the maximum payouts?"

The travel insurance on these credit cards is described as being free to fee paying card holders, but in fact the value of the insurance may not even justify the annual fee that the consumer is paying.

Tom Smith
7th July 2007