Valuing Complimentary Credit Card Travel Insurance

[Renato1]

As an exercise in another thread here, I checked out how much I'm saving this year with Complimentary Travel Insurance from Allianz through CBA, compared to buying it outright from the Defence Health site (where I get some sort of discount). .For our two trips this year, without putting in the pre-existing conditions, the cost would have been $1117 for our trip to Europe and $185 for the trip to Thailand. So our card saved us $1302 this year.

The cost saving would have been similar for our trips to Europe and Bali last year, where Allianz paid out $2433 for a trip cancellation and for accommodation and meals, after being stuck in Bali due to the volcano erupting. And the cost saving for our month long trip to the USA the year before that, would have been around $460.

Given the small annual fee on the card, this is exceptional value in my opinion, for anyone doing some regular vacation travel.

Has anybody else done the exercise of valuing their complimentary travel insurance against buying the same policy outright?
Regards,
Renato

 

[TheRealTMA]

As an exercise in another thread here, I checked out how much I'm saving this year with Complimentary Travel Insurance from Allianz through CBA, compared to buying it outright from the Defence Health site (where I get some sort of discount). .For our two trips this year, without putting in the pre-existing conditions, the cost would have been $1117 for our trip to Europe and $185 for the trip to Thailand. So our card saved us $1302 this year.

The cost saving would have been similar for our trips to Europe and Bali last year, where Allianz paid out $2433 for a trip cancellation and for accommodation and meals, after being stuck in Bali due to the volcano erupting. And the cost saving for our month long trip to the USA the year before that, would have been around $460.

Given the small annual fee on the card, this is exceptional value in my opinion, for anyone doing some regular vacation travel.

Has anybody else done the exercise of valuing their complimentary travel insurance against buying the same policy outright?
Regards,
Renato

Been using CC TI happily for years. Just need to be mindful of the specific T&Cs of the specific card. Plus when you are on trip, in the event of wanting CCTI to pick up costs such as hospital etc, you need copy of credit card statement showing qualifying booking on card and other material.

 

[Deleted member 29185]

With CCTI, do you have to pay, say emergency insured medical expenses, on the card and then seek a refund later, or do you just ring them and make a claim without footing any of the bill first yourself?

 

[TheRealTMA]

With CCTI, do you have to pay, say emergency insured medical expenses, on the card and then seek a refund later, or do you just ring them and make a claim without footing any of the bill first yourself?

You need to get approval then pay and put in claim (note you can earn FF points on the payments), or, you negotiate with the insurance company, after providing proof of eligibility, for them to deal direct with the medical people.

 

[BAM1748]

You only know you've saved when you make a claim and you get your payout.

 

[straitman]

You only know you've saved when you make a claim and you get your payout.

Not sure I agree there.

If you have a policy that is appropriate and pays when where needed and is cheaper than another policy then you have saved. You could just as easily say that you don't know the value of a paid policy until you make a claim and get your payout.

 

[Dr Ralph]

Given the small annual fee on the card, this is exceptional value in my opinion, for anyone doing some regular vacation travel.

Perhaps, but every policy I have seen has far too many exclusions for my liking. If I had a credit card insurance policy I'd expect never to make a successful claim and be delighted if I actually got anything.

 

[Renato1]

Been using CC TI happily for years. Just need to be mindful of the specific T&Cs of the specific card. Plus when you are on trip, in the event of wanting CCTI to pick up costs such as hospital etc, you need copy of credit card statement showing qualifying booking on card and other material.

Thanks. Yes, very important to have all the paperwork including required receipts. I've done that in the past, but with CBA Credit cards, Allianz actually e-mails you a policy document with policy number which you quote when ringing them up (as I did in Bali).
Regards,
Renato

You only know you've saved when you make a claim and you get your payout.

True - and that puts a lot of people off, worried about the uncertainty. Two of my friends went and got Westpac Credit Cards which uses Allianz, only after I told them I had claimed twice with Allianz, and been paid twice.
Regards,
Renato

Perhaps, but every policy I have seen has far too many exclusions for my liking. If I had a credit card insurance policy I'd expect never to make a successful claim and be delighted if I actually got anything.

I can't really spot much difference between the CBA complimentary Allianz policy and the Defence Health Allianz policy.
That said, my wife and I are so unadventurous, I can't think what exclusions would be applicable to us.
Regards,
Renato

 

[moa999]

I used to use the Amex Plat Charge for a few years,
Till they substantially loosened the t&C so dropped it, and flip between annual policy and individual trip depending on plans.

My biggest concern is probably on hire cars where often there is a gap between excess and amount covered (particularly as the AUD varies) and the risk of covering amounts in the mean time

 

[RB]

Perhaps, but every policy I have seen has far too many exclusions for my liking. If I had a credit card insurance policy I'd expect never to make a successful claim and be delighted if I actually got anything.

You may or may not be right!

 

[Renato1]

I used to use the Amex Plat Charge for a few years,
Till they substantially loosened the t&C so dropped it, and flip between annual policy and individual trip depending on plans.

My biggest concern is probably on hire cars where often there is a gap between excess and amount covered (particularly as the AUD varies) and the risk of covering amounts in the mean time

That was my concern too.
The CBA complimentary travel insurance allowed me to buy $6000 additional hire car cover (beyond the $2250 cover that came with the policy) for and additional payment of $90 for the period I'll be over there. Which from memory is a lot cheaper than if I had paid Hertz for that additional cover to wipe out the excess - though the complimentary cover requires that I must have purchased some rental insurance from the rental agency.

Regards,
Renato

 

[BAM1748]

Not sure I agree there.

If you have a policy that is appropriate and pays when where needed and is cheaper than another policy then you have saved. You could just as easily say that you don't know the value of a paid policy until you make a claim and get your payout.

Insurance is a promise to pay nothing more. Ever read the fine print of a rental car policy, if they want to not pay out they can.

What I was getting at is Insurance is only as good as the company behind it so having a premium half the price is only good if you get the full payout.

 

[TheRealTMA]

Perhaps, but every policy I have seen has far too many exclusions for my liking. If I had a credit card insurance policy I'd expect never to make a successful claim and be delighted if I actually got anything.

As I have said elsewhere, Earth Black CC TI (Alliance) paid out my claim for $32550 for a medical issue and extra expenses in Vienna a few years ago. No argument, no deductions, no whinges. Very impressed with the service.

 

[flying_duck]

Unfortunately whilst three of my cards have travel insurance on them, all three of them exclude the types of activities I engage in (risky sports). I have year round covermore insurance, with extra luggage cover for all my equipment, for about $900. I pay it happily knowing others have claimed successfully for the types of accidents I'm likely to find myself in.

I consider credit card travel insurance worthless and do not factor it into card decisions.

 

[Dr Ralph]

Unfortunately whilst three of my cards have travel insurance on them, all three of them exclude the types of activities I engage in (risky sports). I have year round covermore insurance, with extra luggage cover for all my equipment, for about $900. I pay it happily knowing others have claimed successfully for the types of accidents I'm likely to find myself in.

I consider credit card travel insurance worthless and do not factor it into card decisions.

I too take out the annual policy with Covermore. I could never trust any credit card coverage. I'd encourage people to actually read these policies. Exclusions are much more severe than you may think. You may well be covered and you may get a pay out, but I wouldn't assume this to be the case. Be informed is my advice.

 

[RB]

I too take out the annual policy with Covermore. I could never trust any credit card coverage. I'd encourage people to actually read these policies. Exclusions are much more severe than you may think. You may well be covered and you may get a pay out, but I wouldn't assume this to be the case. Be informed is my advice.

I think the point is that paid annual cover also has exclusions. All covers, paid or otherwise require reading & consideration of wording. Credit card coverage is no more untrustworthy if all conditions are met.

 

[Dr Ralph]

I think the point is that paid annual cover also has exclusions. All covers, paid or otherwise require reading & consideration of wording.

Of course. I don't dispute that and never suggested otherwise either explicitly or implicitly.

Credit card coverage is no more untrustworthy if all conditions are met.

I don't agree with this. But the point I have made is that what you term 'conditions' are greater in these types of policies.

As I have already indicated be informed, don't assume.

 

[TheRealTMA]

I too take out the annual policy with Covermore. I could never trust any credit card coverage. I'd encourage people to actually read these policies. Exclusions are much more severe than you may think. You may well be covered and you may get a pay out, but I wouldn't assume this to be the case. Be informed is my advice.

One of the reasons we started using bCC TI many many years ago was after a trip to France using Covermore. Put in claim for stolen luggage and took 8 weeks to process, then they paid only $400 (less $200 excess) on a $1200 claim and it took another two letters to them for them to admit they under paid and we finally received a cheque for the extra $800. Never touched them again. Whereas, (just lucky I guess) all three times we have claimed on CC TI, it was paid out within 2 weeks for the full amount of the claim with no drama.

But obviously YMMV.

And at the end of the day, travel insurance is only good when you do not have to make a claim.

 

[ozjuice]

I've always had a very uneasy feeling about CC TI policies and therefore opt for Allianz as back up.

"$1117 for our trip to Europe" Wow that seems very excessive!

 

[TheRealTMA]

I've always had a very uneasy feeling about CC TI policies and therefore opt for Allianz as back up.

"$1117 for our trip to Europe" Wow that seems very excessive!

Does seem a little, yes!

Have a look at RACQ travel insurance. They seem to offer reasonable deals but CC TT looks attractive.