How does American Express credit card travel insurance work?

Whether you are traveling overseas or in another part of the country, not having travel insurance can have you paying thousands of dollars out of your pocket if something unexpected happens.

Yet, it’s possible to forget about insuring your trip while you’re busy making other arrangements. Having complimentary credit card travel insurance comes in handy at such times by automatically providing a cover for your trips. It also saves you the time and hassle of picking out an insurance policy each time you travel.

Which credit cards offer complimentary travel insurance?

Most premium credit cards offer free travel insurance. For example, American Express provides several complimentary insurance options on its cards, including travel insurance for both international and domestic trips. The Amex credit card travel insurance is provided by Chubb and also covers your spouse and legally dependent children up to a specific age.

What is included in the Amex credit card insurance coverage?

What’s included in your Amex credit card travel insurance coverage depends on the type of card you hold. For example, Amex Platinum Credit Card travel insurance covers you for all of the following:

  • Travel Inconvenience Cover
  • Medical Emergency Expenses Cover
  • Baggage, Money and Documents Cover
  • Travel Cancellation Cover
  • Loss Damage Waiver Cover
  • Transport Accident Cover

The cover extends to you, your spouse and your legally dependent children up to the age of 24. The cover may also be extended to up to 4 additional card members. You can check the travel insurance cover on various cards on the Amex website.

Besides complimentary travel insurance, you may also enjoy free shopping and purchase protection and smartphone screen insurance on select American Express credit cards.

How can I activate my credit card travel insurance cover?

You need to meet a few requirements to use your American Express travel insurance. While it’s best to refer to your card’s terms and conditions for the exact details, here’s a summary of the basic requirements you must fulfill:

  • You’re generally required to book the full fare for a return trip on your Amex credit card or pay with the reward points earned on that card. However, some premium category cards may let you claim the insurance on trips booked with other reward points as long as you’ve used your Amex card to pay the taxes and other additional fees.
  • It’s mandatory that your travel starts and ends in Australia to be eligible for the complimentary cover.

When you’re comparing credit cards with complimentary travel insurance, don’t forget to review the policy exclusions. For instance, does your policy cover accidents due to participation in extreme sports, like canoeing or mountain biking. Or, what are the requirements for claiming missing items? Would you still be able to make a successful claim if there’s no written report from the local police or other such authorities within a specified timeframe?

It’s important to read through the exclusions and other terms and conditions to avoid disappointment over a potential claim in the future.

If you already hold a credit card with complimentary travel insurance, consider reviewing the terms of your cover before you plan your next trip. If you find the cover inappropriate, it’s worth taking out a separate travel insurance policy to protect your trip.

What do I pay for complimentary travel insurance?

That question seems contradictory, but it’s worth assessing the actual cost of complimentary credit card travel insurance. It’s true that you won’t be paying outright for travel insurance with a complimentary cover. However, the cost of travel insurance is usually included in the interest rate or fees charged by your credit provider.

Many credit cards with complimentary travel insurance charge you a moderate to high fee to pay for the perks that don’t come with a standard credit card. Whether or not complimentary travel insurance is worth the cost will eventually boil down to your own personal and financial needs. If you don’t see yourself traveling frequently in the next few years, paying extra for a feature you’re not going to use may not make financial sense. On the other hand, frequent travelers could save a considerable amount of money by avoiding the expense of taking out separate travel insurance each time they plan a trip.

Leave a Comment