Free Travel Insurance With Your Bank? Why Packaged Policies Don’t Always Pay Out

While it may actually be possible to get a free lunch, free travel insurance policies as part of a packaged bank account aren’t the perk they appear to be. Read on to find out what they really do and DON’T cover.

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Bank Accounts with Travel Insurance Included – what’s the catch?

The first alarm bell that sounds should be about the lack of information you give to get that travel insurance! Chances are, with any other insurance purchase, you would have spent a while on the phone or filling out forms that might feel like you are sharing your life story.

There is a reason for that. The insurer wants to make sure that the risk is minimal in relation to the premium a person has paid. The higher the risk, the higher the premium the insurer will ask you to pay.

So for FREE travel insurance…

What kind of risk level is the bank expecting? The answer is VERY VERY low.

What is (and who is) really covered with Free Bank Travel Insurance?

Cover that can be “purchased” with just one click means the bank is making assumptions. The main one being that you won’t read the small print – which will clearly state whether or not it will provide the right cover to meet your needs. The most common criteria are:

  • Within a certain age-group – the younger the more likely
  • No pre-existing medical conditions
  • Not planning any sports or activities

What happens if something happens on holiday and I only have Free Travel Insurance?

As long as you are the right age, and it has nothing to do with a pre-existing condition (as long as they don’t mind that you didn’t tell them about the pre-existing condition, as in some policies that can invalidate the insurance), and the reason you need to claim wasn’t anything to do with an activity or sport, you are probably alright and may make a successful claim.

Having said that – claims are usually rejected over something that wasn’t agreed on, probably COULDN’T be agreed on because it was a one-click-wonder policy.

Whichever way – if you find out that you aren’t covered, you could well be kissing goodbye to your savings to sort out the situation.

What should I do if I already have Free Travel Insurance with my bank?

Read the policy details and make sure that you are VERY SURE that you have the cover you think you need. If you have any doubts, contact your policy provider.

The best way to have the confidence you are covered is to get travel insurance from a specialist provider. It’s not like you’ll be losing money by not using your Free Travel Insurance, and you may well save a lot of money by being covered by the right policy in the event that something goes wrong on holiday.

For more information about comprehensive travel insurance that covers you for what you need contact us at!

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