Credit card providers have improved the travel insurance perks on offer to cardholders, according to analysis by MoneyExpert.com*.
The average amount of travel accident cover on a credit card has increased by around £23,000 in the last 10 months alone. But the independent financial comparison website says it’s a hidden bonus that many customers will never use.
And although customers have to purchase at least part of their holiday or travel using their credit card to qualify, as many as one in three holiday makers put their summer holidays on the plastic last month alone**. Many travellers will therefore have at least some cover without realising it – and some may be paying for insurance twice over.
Around three quarters of all cards offer travel accident insurance, which covers you for medical, travel and accommodation expenses incurred as a result of accident and injury.
The average cover has increased from around £84,534 to £107,547 over the past 10 months. MoneyExpert.com is urging credit card holders to check that they are not duplicating their travel insurance as a result, as many shoppers are not even aware they might be covered.
Other benefits include some cards with crucial lost luggage cover. The number offering that has doubled from eight to 16 in the same period. Credit card holders lucky enough to be covered if they lose their bags abroad can now expect an average £1,168 worth of cover – almost six times the cover they would have received in April last year.
Sean Gardner, Chief Executive of MoneyExpert.com, said: "Credit card providers are always looking for ways to keep their customers. And with as many as a million people switching a credit card every month, they’ve clearly got some work to do."Travel insurance is one of those bonuses for credit card holders – but only if you know you’ve got it. Many of us will buy travel insurance before a holiday without thinking to check the features of our credit card. It always makes sense to buy specialist travel insurance but you should check what your card offers."
The MoneyExpert.com research shows that some platinum credit cards will offer up to £350,000 in travel insurance. Some 122 different cards will provide up to £100,000 worth of cover or more and the lowest amount available is £25,000. Around 56 cards do not provide travel insurance as standard.
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