I’m wondering if people have investigated the value of travel insurance included with credit cards. I just read the detailed Product Disclosure Statement for the AMEX Virgin Platinum card and was a bit shocked to see that supplementary card holders are NOT covered! Looks like I will need to take out a specific travel insurance policy to make both my wife & I are covered.
I have noticed this too a couple of years ago and I phoned AMEX about it, I suggest you also call them. if you read the Terms clearly it does mention elsewhere that spouse, dependants are actually covered, and I am very comfortable with their explanation and my new understanding of the terms.\r\n\r\nWhat AMEX has done is rule out the possibility where a cardholder creates additional cards for his mum, neighbour, mistress, and the dog. None of these will qualify for the insurance.\r\n\r\nSo I have the clear understanding that if I go on holiday with my wife, she is also covered by this insurance. Hoewever what I dont recall if my wife goes on a trip alone, and whether she is covered. But thats not a situation I need to cover, if she goes alone, she better be purchasing her tickets with her own flippin credit card!\r\n\r\nRule No 1 for all travel insurance, not only Credit cards. Read the policy before booking every trip, as it can change from last time, and ring them if any questions or doubt.
I know some people who would never rely on travel insurance provided by credit cards. Then there are those who are of the view that it’s unlikely that the banks would provide shonky credit card insurance because it would anger their best customers. I’m of the second view. In fact the only travel insurance claim I’ve ever had to make (for overseas ambulance and hospitalisation expenses) was made through a free credit card-provided travel insurance (with a card issued by NAB), and they accepted the claim and paid up with a minimum of fuss.
But, for reasons you’ve identified, it’s essential that you read the fine print so you know what you are, and are not covered for. AmEx’s included travel insurance is notorious for covering the cardholder only and not his/her family or supplementary cardholders. I believe that recently this has changed in the case of the Platinum Charge card, but not for the other AmEx cards.
In my case, this means that because my next overseas trip will be with my spouse, I’ve taken out paid travel insurance.
This is a long-winded way of saying that sometimes credit-card provided travel insurance is appropriate, and sometimes it’s not. The only way of knowing is to read the fine print, but if you are ok with what the fine print says, my limited experience is that free credit card-provided insurance is as likely to accept a claim as is any other insurance.