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What you need to know about credit card travel insurance in Singapore
Most people are aware of the benefits of having travel insurance. It can be a godsend when you are overseas, helping you to recoup financial costs relating to lost baggage as well as accidents and illness.
These days, travel insurance is easily available. Some credit card companies offer it with the purchase of their cards in order to lure customers into buying their products.
While convenient, credit card insurance may not be all that it is cracked up to be.
Read the fine print
Many people who buy credit card insurance may not know the level of protection it offers. You should read the product disclosure statement thoroughly to ensure that you are aware of any conditions or exclusions. Not doing so may result in you being inadequately covered for part or the whole trip.
Conditions and exclusions
Simply owning a card does not entitle you to access and claim on the insurance. Most people are unaware that credit cards often have exclusions such as disqualifying those above the age of 80 from claiming on the insurance due to their higher risk of incidents while travelling.
Another condition that can leave travellers in the lurch is the three month limit for travelling. People who travel consecutively for more than three months will lose out as their credit card travel insurance will not cover them for the entire duration of the trip.
If a different card is used to pay for different parts of your holiday, such as flights or accommodation, the traveller may not be covered for the flights or any other activities. Some cards also require a minimum spend to qualify for the insurance.
Many people think the travel insurance offered by credit cards is complimentary. However, most credit card institutions charge for the insurance, with the cost included in the annual fees, raised interest rates or the application fees. These must be paid for whether the insurance is accessed or not.
Credit card insurance vs standalone insurance
The limits of credit card insurance are often significantly lower than those of standalone insurance, making it an important factor to check in the product disclosure statement.
When it comes to the higher excess that needs to be paid on any insurance claim, credit cards charge a higher excess for all travel claims compared to standalone travel insurance.
Taking all these factors into consideration, standalone travel insurance may be a better option compared to credit card insurance.
Want more expert tips on travel insurance?
Read our articles on:
All you need to know about buying travel insurance from your airline.
What to do when your baggage is delayed.
What to do when you have to cancel your trip
How to get the best travel insurance for you.
Wherever you go, whatever you do, remember it’s vital to have good Travel cover.
Check out Budget Direct Insurance for your best deal