Travel insurance provides peace of mind if something unexpected happens while you’re travelling overseas, such as getting sick or injured.  

Policy prices vary depending on where you’re going, the length of trip, how old the travellers are and any pre-existing medical issues you may have, all of which feature in an article which could read here. 

However, for those considering travel insurance, there may be additional cost saving alternatives to investigate. In fact, if you pay annual fees for your credit card, you might already have some coverage. 

So, let’s look at a few options.

Credit cards 

Rewards credit cards can often include complimentary travel insurance, if your trip – or at least a certain amount of it – is charged to your card. 

However, before defaulting to any complimentary policy, you might want to confirm: 

• Who is covered: Is it just the cardholder or all tickets purchased on that card?
• Is coverage subject to age restrictions?
• What is covered? Does it include trip cancellation or interruption, lost or delayed luggage, medical or dental emergencies, car rentals and/or roadside assistance? 
• Are there any cover limits?
• Are pre-existing conditions covered?
• Is coverage location-specific, for example, could you travel to more than one region?
• Are there any regions excluded?
• Is there a limit on trip duration?
• What excess is to be paid when making a claim?

Most importantly, confirm whether there are any requirements to activate your complimentary travel insurance. For example:  

• Is there a minimum trip spend?
• Is a return ticket essential?
• Are you required to notify them of your trip before departure?

Travellers looking for extensive medical and/or evacuation coverage might want to explore purchasing a standalone policy as a top-up option, where additional coverage could be purchased to cover items excluded from a complimentary policy.  

Member coverage or discounts 

Homeowners and/or renters’ insurance may also provide some coverage for lost or stolen items away from home, if you purchased the theft and loss option. 

Check the percentage of coverage for items outside your home and whether this includes anywhere around the world. 

Some private health, car or home insurance providers may also sell travel policies and offer member discounts, which is why it could be worth getting a quote from your existing insurance provider. 

Booking sites 

Selected online booking sites and travel agencies may offer trip protection as an optional extra.  

However, there is a difference between travel insurance and trip protection: 

• Travel insurance covers medical emergencies, flight delays, lost luggage, theft, trip cancellation and car rental damage while travelling.
• Trip protection covers trip cancellations and waives cancellation penalties.

As you weigh up your travel insurance options, it’s important to consider your main concerns and related coverage. 

A comprehensive standalone travel policy may offer further customised coverage and reimbursement in case of illness or injury, whilst complimentary travel insurance may be included in your annual fee to protect you from some unexpected bills. 

Whatever your choice, don’t forget to check the fine print and confirm your coverage requirements before embarking on your trip. 

Like every article on this website, this is not personal financial advice.