Travel Insurance vs Health Insurance

[Pushka]

Who in their right mind would buy travel insurance anyway? Surely the sensible thing to do is sign-up for a premium credit card that includes travel insurance and usually a few other tasty things such as a couple of lounge passes, low interest balance transfer, 50K+ bonus frequent flyer points, no fees for the first year, free bottle of wine with dinner at selected restaurants, etc. If you later decide you don't want to keep the premium credit card just cancel it before the fee-free period is up.

Really need to read those T&C's.

 

[Renato1]

Who in their right mind would buy travel insurance anyway? Surely the sensible thing to do is sign-up for a premium credit card that includes travel insurance and usually a few other tasty things such as a couple of lounge passes, low interest balance transfer, 50K+ bonus frequent flyer points, no fees for the first year, free bottle of wine with dinner at selected restaurants, etc. If you later decide you don't want to keep the premium credit card just cancel it before the fee-free period is up.

Well, I've now heard several independent travel experts on radio (the ABC I think) unequivocally state that the "free" travel insurance on credit cards is nowhere near as good as the purchased travel insurance. I say "free" because there usually is a small payment due the the credit card fee often placed on purchasing air fares (Flight Centre certainly were charging that fee last time I used them).

I figure that if something is going to go wrong, it will most likely go wrong when I am travelling - so I want full coverage, as that is the best bet.

So far I've only made one claim when we lost our money on a hotel in Dubai after a passport went awry. And the company paid the $900 in full. Last year I was about to claim 800 Euros, being the excess after a car crash in Italy, when Hertz sent me the 800 Euros as I had not been at fault.

As I pointed out in the original post to this thread, given that I can suspend my local private health insurance, the comprehensive travel insurance is in effect free for me.
Regards,
Renato

 

[medhead]

It all depends on the insurance requirements. I've found few travel insurance policies, credit card or otherwise, provide the item limits I require to be fully covered for things like electronics, when traveling with family. In fact last family trip involved $10000 replacement cost for handbags alone. Will any card travel insurance cover that much?

 

[MEL_Traveller]

Well, I've now heard several independent travel experts on radio (the ABC I think) unequivocally state that the "free" travel insurance on credit cards is nowhere near as good as the purchased travel insurance.

The 'experts' are wrong. Simple as that.

There are some 'free' travel insurances (not many, but one or two) that provide equal or better insurance than paying for one yourself. ANZ Platinum is one example. There is however a whole thread on AFF devoted to that very topic...

(edited after reading ozbeachbabe's post... if talking specifically about pre-existing, then it may be the case than CC insurance is not as good...)

 

[ozbeachbabe]

I was unaware of private medical flights - thanks for that.

The Italian hospitals seem to treat all the illegal immigrants, and there is a reciprocal agreement with Australia - and while my wife isn't in the category, I'm covered because I'm also an Italian citizen (which was a surprise to me on my 18th birthday, when I got conscription papers for the Italian Armed Forces). So I'm pretty sure I'd be covered.
Regards,
Renato

Mama Mia! Well at least you didn't get a silver bullet in the mail!

Who in their right mind would buy travel insurance anyway? Surely the sensible thing to do is sign-up for a premium credit card that includes travel insurance and usually a few other tasty things such as a couple of lounge passes, low interest balance transfer, 50K+ bonus frequent flyer points, no fees for the first year, free bottle of wine with dinner at selected restaurants, etc. If you later decide you don't want to keep the premium credit card just cancel it before the fee-free period is up.

The OP mentioned a pre-existing medical condition so it's highly likely the 'free' credit card travel insurance wouldn't cover this.

 

[MEL_Traveller]

It all depends on the insurance requirements. I've found few travel insurance policies, credit card or otherwise, provide the item limits I require to be fully covered for things like electronics, when traveling with family. In fact last family trip involved $10000 replacement cost for handbags alone. Will any card travel insurance cover that much?

ANZ only provides $12,000 per policy holder, with a maximum $4000 for computers and electronics, and $1000 for any other item.

 

[moa999]

And other 'free' travel insurances that people here used to rely on (eg Amex Plat) started using very vague/tough (eg 'all travel' to be paid on the card) that stopped some here using it

 

[mrdctau]

Really need to read those T&C's.

Obviously, caveat emptor and all, one needs to be across the T&Cs; but on the two occasions that I've made claims under credit card travel insurance policies (one minor and one substantial) both were promptly accepted and paid.

 

[Renato1]

Mama Mia! Well at least you didn't get a silver bullet in the mail!

No silver bullets, just a bunch of Carabinieri (sort of a Military style police force) that went looking for me in the neighbourhoods where my parents had lived. My uncle told them that they must be joking as I'd lived in Australia since being born there - but they treated his statement skeptically.

Despite setting everything right with the local Italian Consulate, I stayed in exile from Italy for 30 years till they ended conscription. This was because one didn't get an exemption from military service, rather one was in the military, but on military leave from it.
Cheers,
Renato

 

[Pushka]

Obviously, caveat emptor and all, one needs to be across the T&Cs; but on the two occasions that I've made claims under credit card travel insurance policies (one minor and one substantial) both were promptly accepted and paid.

Simple claims are fine through CC's. But life is not always simple.

 

[RB]

Simple claims are fine through CC's. But life is not always simple.

I think we can also speculate that may also be the case with " purchased" policies. My experience earlier this year certainly does not give me much love for 1cover yet others have apparently had good experiences

 

[Peter D]

The 'experts' are wrong. Simple as that.

Agree completely. The experts give out the stock standard travel industry response and have never read the terms and conditions themselves.

CC insurance is simply a normal travel policy issued by a major insurance company such as Zurich who handle all claims and queries.

The bank buys in bulk wholesale. If they have 1 million cards on issue and say 100,000 travel per year they would get dam good wholesale price and with no "commission food chain" involved. Spread over the original million cards it's easily covered by the annual fee with money to spare (to the banks profit not mine unfortunately).

CC insurance will cover pre-exsiting which we declared only few months ago, for trip to USA, with Westpac/Zurich. It's either A) on the list, B) for fee online/phone, or c) documentation to be reviewed by their staff nurse for a higher fee.

On personal effects Westpac Black and Platinum will give $20,000 per person / $30,000 per family with item limits of $5,000 per item.
Activated by a $500 purchase of some component of travel or accommodation.

As with any policy one must read it, to make sure what you want is covered.

 

[Pushka]

The gap is higher in CC claims.

 

[mrdctau]

The gap is higher in CC claims.

Are you sure? What sort of excesses are applicable to purchased/retail travel insurance policies? For the CC policies issued by Zurich (which cover several of the major credit card issuers including my own) the excess is $200 for most things. I suspect the so-called "independent travel experts" suggesting that credit card policies are inferior are probably just ruing the fact that they don't collect the humongous commissions on purchased/retail policies if people choose to rely on their credit card policies. Zurich were fantastic a few years back when my family got stranded in Macao when Air Macao went bust and flew us home on Qantas and even paid for the ferry to get us to Hong Kong. Some people have difficulty getting over the paradigm that if something is "free" it must be inferior; but of course these credit card policies are not "free" at all as the underlying cost is built into the annual fees you pay, credit card surcharges imposed by some merchants and/or indirect upward pricing pressure on things you buy so that merchants can cover the applicable fees. If you have a premium credit card, you are already paying for travel insurance, so you may as well use it.

 

[Pushka]

I pay no excess for $25 extra. On an annual policy that is nothing. And excess under credit card is $200 per claim.

 

[MEL_Traveller]

I pay no excess for $25 extra. On an annual policy that is nothing. And excess under credit card is $200 per claim.

I compared ANZ insurance with a TID annual policy... ANZ had an excess of $250 for certain categories that TID was only charging $100.

but given there is no premium to pay on ANZ, and if someone only makes a claim once every 'x' years (or hopefully, touch wood - not at all) they may be far out in front with a CC policy.

(geez this sounds like tempting fate) but I haven't needed to claim on insurance for the last 10 or more years. That's saved how many thousands of dollars in annual premiums? If I need to make a claim on my next trip - that's going to cost me just $250 (depending on what the claim category is... some have 'nil' excess). Net benefit is thousands of dollars saved.

Now if the company way paying - sure I'd take an annual policy with a zero excess.

YMMV.

 

[Pushka]

There's the thing. Stuff happens when I travel. Not big stuff (except for my son's friends accident a few years ago) but enough that I take out a policy. Cancelled flights requiring an extra night. Lost bags. Camera stolen. Phone stolen. The no excess means I am going to claim.

 

[Renato1]

Well, we seem to have digressed from my original topic about Travel Insurance seeming to cost less than local private health insurance.

Following is the image of my benefits from what I purchased from Allianz through Defence Health. For those familiar with complimentary credit card Travel Insurance, how would you rate what you get compared to my purchased one - effectively less, effectively equivalent, or effectively better?
Regards,
Renato

 

[mrdctau]

Well, we seem to have digressed from my original topic about Travel Insurance seeming to cost less than local private health insurance.

Following is the image of my benefits from what I purchased from Allianz through Defence Health. For those familiar with complimentary credit card Travel Insurance, how would you rate what you get compared to my purchased one - effectively less, effectively equivalent, or effectively better?
Regards,
Renato

Best to check with your own credit card provider, but the coverage with my "free" credit card travel insurance against the "single comprehensive" column of your table above is as follows:

1.1 Unlimited
1.2 $1,250
1.3 $50,000
1.4 Not covered other than via "medical expenses"
1.5 $110/day based on actual incidental expenses incurred up to $13,000
1.6 $12,000
2.1 Unlimited
2.2 $5,000
3.1 Unlimited
3.2 $475
3.3 Unlimited
3.4 $6,000 (assuming this is the same as "Resumption of Journey")
3.5 Not stated as either an inclusion or exclusion
3.6 Not stated as either an inclusion or exclusion
3.7 Not stated as either an inclusion or exclusion
4.1 $16,000 (some sub-limits apply - e.g. $5,000 for a laptop)
4.2 $500
4.3 $600* (*4.3 & 4.4 have a combined limit of $600)
4.4 $600*
5.1 $2,750
6.1 $2.25 million

I would class my coverage as "effectively equivalent" assuming the Defence Health product also has a $200 excess, which I believe it does unless you pay extra to remove it. In my own personal experience, the only claims I've ever had to make are for rental car insurance excesses (so make sure the excess on your car rental agreement doesn't exceed your travel insurance coverage) and "travel service provider insolvency". It's nice to know that you have "unlimited" medical coverage in case you get sick or injured, but I think that is pretty much standard for all policies.

DISCLAIMER: All policies have lots of fine print with differing definitions and differing inclusions/exclusions so I make no representations as to whether the "free" travel insurance that I use will suit anybody's individual needs nor do I warrant the accuracy of the table I've produced above as terminology may be different and I may have made a transposition or interpretation error. I still think that people who buy travel insurance when they have perfectly adequate coverage via their credit card provider are silly.

 

[Sprucegoose]

Never travel without travel insurance