Beware of credit card insurance

[Vet]

I've aired my concern about this possible 'escape clause' before, and now it looks like a forumite was stung. As the escape clause is in every cc policy I've seen, it might be in your m/card, visa or whatever 'policy' too. Here's Tryhard's post:

"Just a word of warning for anyone who is thinking of utilising the "complimentary" travel insurance you receive with an American Express gold charge card. We booked and paid for our Sydney- LA flights with our Am Ex card, but because we subsequently paid for an LA- Denver airfare with our Visa card, the whole policy became null and void. We had to cancel our trip after my husband hurt his back and couldn't travel. We put in our claim, but because we hadn't paid for the "entire trip" on Am Ex, the whole policy was therefore invalid. So heads up. Either DON'T rely on this travel cover, or lie through your teeth when putting in a claim and don't give full disclosure. My biggest warning is for those who use owner direct websites as we did for our Breckenridge accomm (VRBO) as this was deposited using Direct deposit into the owners bank account, and therefore is also in contradictiont the "Entire trip must be paid for on am ex" clause, so could also jeapordies your insurance. Just glad we were only claiming a few thousand for cancelled airfares and not been injured while in the USA and then discovered we weren't covered at all. Beware and read ALL of the fine print. "

[Paul Oberin]

I usually pay as much as I can with my CBA Gold card, CBA say a certain percentage must be paid for by the Gold card not sure how much now, it is unrealistic to expect 100% of it to be paid by card, you do need to pay for some things with cash.
I inquired on my last rip about making a claim with CBA only to find out that our trip to Sydney on the Tusday night so we could catch the 6am international flight the next morning was not covered as it was not the same day.

[Xena]

I booked similarly for two separate trips to Canada and USA in 2008 and 2009 on Citibank Visa (owner direct accom, not whole trip paid on the card). Both times I used the 'free' travel insurance for claims and was successful. I was happy. However, my claims were for medical and small amoutns of stuff like days we couldn't ski due to the injury etc - no change to flights involved.

[Vet]

For centuries judges decided that insurance was an illegal contract because the contracts really were 'cons'.

The wording I've seen always said 'entire trip' so I smelt a rat. With other clauses I'm smelt armpits too. The policies really stink when you get right into them.

[blutek]

Probably still depends on your card and status. I still have to read our current PDS, but our understanding was that all or part of the airfare had to be purchased on our AmEx Plat. We just burnt a large amount of QFF points this week for Feb 2012 travel, so it's timely for me.

About 2 years ago, my Citybank Plat insurance (helpline) arranged another flight for us, when we missed ours at Narita (midnight negotiations with QF to get us on a full flight next day - a couple of QFF Elites must have got an unexpected Op Up - lucky for us it wasn't Jet*). However, the insurer didn't pay the claim, as it was our fault we missed the flight. Still, the after hours service support was excellent and far more valuable than the small $$'s an extra day cost us.

There's still plenty of complaints about travel insurance particularly when it comes to snowsports (there's older threads on that one).

[SA]

FWIW, CBA Gold card complimentary insurance, at least for the last 3 years, has kicked in when:

A$950 of each of a cardholder, spouse or dependant's prepaid travel costs (which includes overseas travel tickets, airport/departure taxes, and prepaid overseas accommodation or travel) OR 90% of the overseas travel tickets is charged to the card. Overseas travel ticket means the return ticket out of, and back into Australia.

None of this 'entire trip' stuff.

As always, read your PDS very very carefully.