At this time of year, thousands of us will be looking forward to jetting off on our summer holidays. If your holiday is just around the corner, you may just now be checking your travel insurance and purchasing a policy that will cover you for every eventuality. However, if you bought your holiday with your credit card you may already have some holiday perks that you just didn't know about.
With research showing that as many as one in three holidaymakers pay for their trip by credit card, it's well worth you looking at what travel bonuses your card may automatically include as part of your purchase. In the past ten months, the average amount of travel accident cover on a credit card has increased by around ?23,000, from ?84,534 to ?107,547.
Such insurance is likely to cover medical, travel and accommodation expenses incurred as a result of accident and injury. Of course, you should always check the extent of the cover offered, especially if you are planning any activities while holidaying. But even if your dream trip is a bungee-jumping adventure across New Zealand, you should still check your existing credit-card cover to ensure you are not paying twice for your holiday peace of mind.
For example, a number of credit cards also now offer free baggage insurance if you use your card to buy your holiday, with an average ?1,168 worth of cover, a huge increase on last year. Okay, some may consider you crazy for wanting to jump off dangerously high bridges, but you'd really feel like the fool if you discovered you'd paid double for your baggage insurance.
Several providers also offer other free travel perks - for example, free purchase protection, which covers against loss, theft and accidental damage for purchases bought while you are holidaying. Again, just be careful to check the cover as there will be limits and excesses apply.
Your credit card provider may also offer an emergency replacement facility, should you lose your card while on holiday. Considering how much we all rely on plastic today, you may see this as vital for a stress-free trip.
If you travel a lot, you might consider applying for a credit card that has a higher fee, but also provides numerous benefits for the regular traveller. The American Express Platinum Card, for instance, has no pre-set credit limit and numerous perks for the holder.
The annual fee is a rather heart-stopping ?225, but for that you not only get free travel insurance for you and your family if you pay for your holiday with your card, but you can also have extra cards for yourself and your family members over 18.
In addtion, there is a reward scheme included in the fee, which awards the holder one point for every pound spent. These points can then be used to buy a wide range of goods, including airline tickets, hotels and car hire. With restaurant discounts, free companion airline tickets, and access to 500 airport lounges worldwide for you and your partner, you might think the fee worthwhile, especially if you are a frequent traveller. Before you set off on your hols this year, or before you book your holiday for next year, take a moment of two to look through potential credit card benefits. In particular, you should ask questions such as:
* If I book with my credit card, will I be able to get any kind of discount on the holiday price? (Many credit cards will offer a percentage discount of approximately 5% ).
* Will I get holiday insurance for free, if I pay with the card?
* What cover does that include? Will I need additional cover or will my credit card insurance be sufficient for my needs?
* Are there any other perks - for example, car hire, hotel discounts etc?
* The benefits are great, but what charges might I incur for using the card overseas? Would a cheaper card with fewer benefits be more cost-effective?
* If I lose my card, will my provider provide an emergency replacement and/or cash holiday cover?
For many of these benefits, you may find you have to pay an annual fee. You may weigh up the costs and decide that the fee is more than worthwhile. Alternatively, you might decide to look for a card that has no fees or benefits, but is cheaper to use abroad. Your decision will depend on your individual circumstances, but whatever holiday credit card you choose, be sure you know what you're getting, so that you can get the very most out of your all-important holiday budget.
