You’re going on an overseas trip this summer. You booked your flight and hotel using a rewards credit card that offers free international travel insurance, as many do. What exactly does that travel insurance cover? Will you recoup losses if you have to cancel your flight? Will you be covered if you’re injured while on your flight? What about if you’re injured at another time during your trip?

Your credit card travel insurance policy can definitely save you money by protecting you in certain situations, but it also might not be quite as comprehensive as you think. Let’s look at a specific example for the international travel insurance policy currently offered with the Earth Platinum credit card. Note that this is not a comprehensive look at coverage offered. You’ll simply find highlights for illustration purposes. To get the full details about this insurance coverage, please review the policy documentation.

Travel Insurance Policy Benefits

Here are some of the things covered by this example of an overseas travel insurance policy.

1. The insurance covers medical and hospital expenses on an unlimited basis (except for a specific bed care patient allowance of $100 per day) if the medical expenses are incurred because of something that happened while you were overseas.
2. Personal property is covered up $20,000 per person (or $30,000 per family) for loss or damage. This only applies to personal property and there are specific limits for certain types of goods — clothing, cameras, laptop computers, etc.
3. The insurance may cover non-refundable expenses incurred in booking the trip if you suddenly have to cancel that trip. This only applies in certain situations though. Examples include having travel documents lost or stolen while you’re away, becoming seriously ill before leaving, being subpoenaed by a court of law, or the occurrence of a natural disaster at your departing location or intended destination.

Travel Insurance Policy Drawbacks

While it might sound like a fairly comprehensive insurance policy, you still won’t be covered in all scenarios. For example, if you have any pre-existing medical condition that might cause problems while travelling, you’ll only be covered for medical expenses if you have it previously approved (before leaving Australia) and you pay an administrative fee. For medical claims you would also need to provide proof and advice from a qualified medical professional.

You’re also required to take steps to minimise your losses before you can put through a claim. For example, you would need to contact your hotel and airline to try to secure refunds first. Claims can also depend on your own knowledge and behaviour. For example, benefits might not be paid related to a death in the family affecting travel arrangements if you could have reasonably known that the death was likely to happen during your trip. And when dealing with rental cars, if you don’t follow the terms of your rental agreement you might be out of luck if the car is lost or damaged during the trip.

As much as insurance can give you peace of mind, remember that ultimately things are in your hands. Better your chances of having claims honoured by abiding by all rules, being responsible, and being proactive about your security. An insurance policy is not a license to leave things to chance.