According to new research by US-based credit and debit card comparison site CompareCards, nearly half of US travellers are not using the travel insurance policies that accompany their credit cards.
CompareCard surveyed 1,050 US travellers, finding that 47 per cent did not use the travel insurance plan that came with their credit card. It also found that of those that did use the policy and also filed a claim, 76 per cent were fully compensated afterwards.
Purchase protection is the most commonly utilised add-on that US travellers use, with 46 per cent of those that have used their card’s policy using it for that purpose, followed by car rental collision (37 per cent) and price protection (35 per cent). Only six per cent have used the card policy for medical evacuation purposes, while lost/delayed baggage and trip delay also ranked low at 18 per cent and 12 per cent respectively. Furthermore, two-thirds of cardholders said that they would feel confident relying on card cover in the future.
“Many people simply aren’t aware of the deep level of benefits that are attached to credit cards. These are, in essence, free insurance policies that are often neglected,” said Thomas Donaldson, senior credit card specialist at CompareCards.
However, as previously covered in ITIJ, credit card cover has come under attack recently, specifically by the Australian Federation of Travel Agents, which called products offered by several banks in the country as ‘Mickey Mouse products’.