The True Cost of Free Travel Insurance

Research by Post Office Travel Insurance reveals that 46 per cent of people are looking for ways to reduce the cost of their holiday, and travel insurance (http://www.postoffice.co.uk/portal/po/jump1?catId=63300708&mediaId=19300208) is just one of the ways they're looking to cut back. Some consumers may be tempted to rely on freetravel insurance (http://www.postoffice.co.uk/portal/po/jump1?catId=63300708&mediaId=19300208) that comes with their credit cards. However, Post Office Travel Insurance urges holidaymakers to fully understand what free credit card travel insurance actually covers them for.

Whilst some credit card providers offer comprehensive travel insurance to their cardholders, the majority provide a very different free travel insurance policy known as "travel accident insurance". Many holidaymakers are under the mistaken belief that the travel accident insurance will provide the same cover as a traditional travel insurance policy, yet this is not the case.

More often than not, credit card travel accident insurance will not cover the traveller before they travel to or when they arrive at their destination - meaning they will be unable to claim compensation for cancellation, travel delay, missed departure and lost or stolen possessions. Furthermore, such policies are likely to include only very limited personal accident insurance, which means travellers could be hit by costly medical expenses if they are struck by illness whilst away.

Post Office Travel Insurance is therefore warning travellers that it is imperative that they are fully aware of the terms of their credit card travel insurance policy, and that they take out additional travel insurance if they are in any doubt about level of cover.