Wednesday, 21 May 2008
Using your credit card abroad?
Planning a big shopping trip abroad? In order to bag as many bargains as possible you might decide to take your credit card. But as BBC Watchdog recently highlighted, it may not be a good idea to solely depend on it.
The good thing about using credit cards abroad is that they are widely accepted. In today’s world, a credit card can be the most useful thing of all for getting you out of a scrape. Also the exchange rate offered on credit cards is about the best you can get (but don’t forget that many charge a “loading rate”, typically around 2-3%, and there are charges for using them in cash machines so they are best used for larger purchases and withdrawals).*
But in order to combat card fraud, credit card companies now look for unusual activity on cards, and spending abroad can be considered unusual. If the company decides something is suspicious, they may put a block on the card to prevent any further spending. This may be more likely to happen in countries that don’t have Chip and Pin such as the USA*.
Sometimes they will endeavour to inform you of this, but if you are on holiday you might not receive the message if it goes to your home number. Others might not phone you at all – which means costly international phone calls to the credit card company to sort it out, when you should be enjoying your trip!
If your credit card is your only source of money on holiday you could be left in a perilous position if your card is blocked as the call centres are not always easy to reach, and of course you need the money to make the phone calls. Some holidaymakers have been left unable to buy meals and onward transport due to having no other access to funds.
When BBC Watchdog contacted some banks to establish the best course of action, all of them recommended phoning your bank to inform them of your holiday plans. However as the blocks are applied by computer, there is still no guarantee that your card won’t be stopped. They also recommend giving the card company your mobile number so if they do try to phone you at least you can be contacted. But really the only way around the problem is to take some back-up money with you.
Don’t forget to take travel insurance when you go abroad as well as your credit card. In some cases it may be easier to settle some out-of-pocket expenses upfront with the card and claim them back from your insurer on your return home. Check your policy wording carefully to establish whether your claim will be valid and for any procedures you need to follow. 24/7 travel insurance offers insurance for a weekend break from under £10** including cover for personal money and travel documents of up to £500.
*Source: Moneysavingexpert.com
** Premium £9.75 includes Insurance Premium Tax, based on a couple aged 18-54 taking out a “standard” Single Trip policy for 3 days for European travel and purchased within 14 days of departure date. Cover details and prices are correct at time of going to press and are subject to change.
The good thing about using credit cards abroad is that they are widely accepted. In today’s world, a credit card can be the most useful thing of all for getting you out of a scrape. Also the exchange rate offered on credit cards is about the best you can get (but don’t forget that many charge a “loading rate”, typically around 2-3%, and there are charges for using them in cash machines so they are best used for larger purchases and withdrawals).*
But in order to combat card fraud, credit card companies now look for unusual activity on cards, and spending abroad can be considered unusual. If the company decides something is suspicious, they may put a block on the card to prevent any further spending. This may be more likely to happen in countries that don’t have Chip and Pin such as the USA*.
Sometimes they will endeavour to inform you of this, but if you are on holiday you might not receive the message if it goes to your home number. Others might not phone you at all – which means costly international phone calls to the credit card company to sort it out, when you should be enjoying your trip!
If your credit card is your only source of money on holiday you could be left in a perilous position if your card is blocked as the call centres are not always easy to reach, and of course you need the money to make the phone calls. Some holidaymakers have been left unable to buy meals and onward transport due to having no other access to funds.
When BBC Watchdog contacted some banks to establish the best course of action, all of them recommended phoning your bank to inform them of your holiday plans. However as the blocks are applied by computer, there is still no guarantee that your card won’t be stopped. They also recommend giving the card company your mobile number so if they do try to phone you at least you can be contacted. But really the only way around the problem is to take some back-up money with you.
Don’t forget to take travel insurance when you go abroad as well as your credit card. In some cases it may be easier to settle some out-of-pocket expenses upfront with the card and claim them back from your insurer on your return home. Check your policy wording carefully to establish whether your claim will be valid and for any procedures you need to follow. 24/7 travel insurance offers insurance for a weekend break from under £10** including cover for personal money and travel documents of up to £500.
*Source: Moneysavingexpert.com
** Premium £9.75 includes Insurance Premium Tax, based on a couple aged 18-54 taking out a “standard” Single Trip policy for 3 days for European travel and purchased within 14 days of departure date. Cover details and prices are correct at time of going to press and are subject to change.
Labels: creditcards
// posted by 24/7 Travel Insurance @ 12:01
Wednesday, 14 May 2008
‘Free’ travel cover – are you fully covered?
If you’re a regular reader of this blog you are probably a savvy traveller with an eye for a bargain. So you might have noticed that you already may have free travel cover with your credit card or bank account. Excellent, you think, I don’t need to buy travel insurance for my next holiday! Right?
Not necessarily. Many of these policies are known in the industry as “Travel Accident Insurance”. In spite having the words “travel” and “insurance” close together, the cover usually extends only as far as you having an accident while you are travelling to or from your holiday destination on public transport. Once you are “on holiday”, the cover ceases. If you are taken ill, that isn’t an “accident” so you are also not covered.
Given the cover limitations, and that the odds against you being involved in an air accident are pretty remote, your “free” travel insurance isn’t really that much of a perk. A better use for your credit card would be to purchase your holiday with it if it is over £100, as credit cards give you some extra protection by law under the Consumer Credit Act if there are problems with the holiday caused by the tour operator failing to honour their contract.
According to the Ombudsman, complaints regarding travel insurance are decreasing overall but are increasing in the area of free travel cover. About one in eight travel insurance complaints relate to this type of policy.*
Even if you have been offered free travel insurance – the real thing – check the policy wording very carefully. If you are over 55 or taking part in winter sports, you may well not be covered at all. Some of the policies offer Medical Expenses cover only up to £350,000*. Loads of money, you might think, but many claims exceed this figure, particularly those in the USA. Other policies may have serious restrictions on cancellation cover or on claims relating to sporting activities – with very different definitions on what constitutes a “dangerous activity”.
Travel insurance is not expensive when balanced against the savings that can potentially be gained in the event of a claim. For example, a 3-day trip to Europe costs from just £4.38** with 24/7 Travel Insurance http://www.247travelinsurance.co.uk/ .
If your credit card or bank account is offering free travel insurance, the chances are that the costs of the insurance are being covered by other means such as high interest rates or fees. It may be better value to seek out a card which offers a lower interest rate or without a fee, and take out travel insurance separately – and have peace of mind on your holiday. Now that’s savvy!
*Source: Scotsman.com Business, 28th October 2007
** Premium £4.38 includes Insurance Premium Tax; based on an individual traveller aged under 55 taking out a "Standard" Single Trip policy for 3 days in Europe excluding personal possessions cover and purchased within 14 days of departure date. Cover details and prices are correct at time of going to press and are subject to change.
Not necessarily. Many of these policies are known in the industry as “Travel Accident Insurance”. In spite having the words “travel” and “insurance” close together, the cover usually extends only as far as you having an accident while you are travelling to or from your holiday destination on public transport. Once you are “on holiday”, the cover ceases. If you are taken ill, that isn’t an “accident” so you are also not covered.
Given the cover limitations, and that the odds against you being involved in an air accident are pretty remote, your “free” travel insurance isn’t really that much of a perk. A better use for your credit card would be to purchase your holiday with it if it is over £100, as credit cards give you some extra protection by law under the Consumer Credit Act if there are problems with the holiday caused by the tour operator failing to honour their contract.
According to the Ombudsman, complaints regarding travel insurance are decreasing overall but are increasing in the area of free travel cover. About one in eight travel insurance complaints relate to this type of policy.*
Even if you have been offered free travel insurance – the real thing – check the policy wording very carefully. If you are over 55 or taking part in winter sports, you may well not be covered at all. Some of the policies offer Medical Expenses cover only up to £350,000*. Loads of money, you might think, but many claims exceed this figure, particularly those in the USA. Other policies may have serious restrictions on cancellation cover or on claims relating to sporting activities – with very different definitions on what constitutes a “dangerous activity”.
Travel insurance is not expensive when balanced against the savings that can potentially be gained in the event of a claim. For example, a 3-day trip to Europe costs from just £4.38** with 24/7 Travel Insurance http://www.247travelinsurance.co.uk/ .
If your credit card or bank account is offering free travel insurance, the chances are that the costs of the insurance are being covered by other means such as high interest rates or fees. It may be better value to seek out a card which offers a lower interest rate or without a fee, and take out travel insurance separately – and have peace of mind on your holiday. Now that’s savvy!
*Source: Scotsman.com Business, 28th October 2007
** Premium £4.38 includes Insurance Premium Tax; based on an individual traveller aged under 55 taking out a "Standard" Single Trip policy for 3 days in Europe excluding personal possessions cover and purchased within 14 days of departure date. Cover details and prices are correct at time of going to press and are subject to change.
Labels: Free-travel-cover
// posted by 24/7 Travel Insurance @ 11:19
Tuesday, 6 May 2008
Mobile phones on planes – good or bad?
Plans were recently announced by Ofcom to allow mobile phones on flights in EU airspace thanks to new developments in technology which eliminate the danger to navigational systems. The airlines were delighted – here was a new attraction to passengers which didn’t cost them much money to implement. They were most probably very surprised when the news was received to a chorus of disapproval.
We are used to not using laptops and mp3 players during take-off and landing, but mobile phones were banned on planes altogether because of two reasons: radiowaves emitted by handsets can interfere with the two-way radio used by pilots, and they can skew the avionics (the on-board systems which control the plane).
However, airliners can now carry a hub (rather like a wireless broadband router) which makes the use of mobile phones safe. But the news was not well received. Why could this be?
After all, long-haul flights are tedious. Being able to chat or text a friend is great for relieving the boredom. Not to mention being able to make contact with people if your flight is stuck in the Heathrow holding pattern. Perhaps you could also play some games on your phone or surf the net while the hours fly by.
On the other hand, planes are a confined space. Everyone has sat next to someone on the train who natters all the way home, usually shouting, and giving far too much information about certain things. Train journeys are already made miserable enough thanks to mobile phones, but if things get really bad you can at least move carriage or get off and walk around until the next train – but the thought of similar happening all the way through a flight is enough to make most people look into the costs of parachutes!
Also, just as you’re settling down to sleep, imagine how you would feel when your neighbour’s phone serenades us with it’s very witty (to the owner) ringtone, and he searches all his pockets looking for it while jabbing you with his sharp elbows.
Ofcom has left it to the airlines to sort out these issues. How they do this remains to be seen. Maybe the airlines will accept this as a good excuse for an upgrade...
If you are taking your mobile phone on a trip – whether you are using it on a plane or not – make sure it is sufficiently insured. http://www.247travelinsurance.co.uk/ offers valuables cover of up to £150 on their Standard policy, and £300 on their Premier travel insurance policies* and cover starts from under a fiver**. But don’t put it in your hold baggage as you will not be able to claim for losses arising from that!
*Single Trip and Annual Multi-trip policies only
**Premium £4.86 includes Insurance Premium Tax; based on an individual traveller aged under 55 taking out a ‘standard’ Single Trip policy for 3 days in Europe and purchased within 14 days of departure date. Cover details and prices are correct at time of going to press and are subject to change.
We are used to not using laptops and mp3 players during take-off and landing, but mobile phones were banned on planes altogether because of two reasons: radiowaves emitted by handsets can interfere with the two-way radio used by pilots, and they can skew the avionics (the on-board systems which control the plane).
However, airliners can now carry a hub (rather like a wireless broadband router) which makes the use of mobile phones safe. But the news was not well received. Why could this be?
After all, long-haul flights are tedious. Being able to chat or text a friend is great for relieving the boredom. Not to mention being able to make contact with people if your flight is stuck in the Heathrow holding pattern. Perhaps you could also play some games on your phone or surf the net while the hours fly by.
On the other hand, planes are a confined space. Everyone has sat next to someone on the train who natters all the way home, usually shouting, and giving far too much information about certain things. Train journeys are already made miserable enough thanks to mobile phones, but if things get really bad you can at least move carriage or get off and walk around until the next train – but the thought of similar happening all the way through a flight is enough to make most people look into the costs of parachutes!
Also, just as you’re settling down to sleep, imagine how you would feel when your neighbour’s phone serenades us with it’s very witty (to the owner) ringtone, and he searches all his pockets looking for it while jabbing you with his sharp elbows.
Ofcom has left it to the airlines to sort out these issues. How they do this remains to be seen. Maybe the airlines will accept this as a good excuse for an upgrade...
If you are taking your mobile phone on a trip – whether you are using it on a plane or not – make sure it is sufficiently insured. http://www.247travelinsurance.co.uk/ offers valuables cover of up to £150 on their Standard policy, and £300 on their Premier travel insurance policies* and cover starts from under a fiver**. But don’t put it in your hold baggage as you will not be able to claim for losses arising from that!
*Single Trip and Annual Multi-trip policies only
**Premium £4.86 includes Insurance Premium Tax; based on an individual traveller aged under 55 taking out a ‘standard’ Single Trip policy for 3 days in Europe and purchased within 14 days of departure date. Cover details and prices are correct at time of going to press and are subject to change.
Labels: Mobile-phones
// posted by 24/7 Travel Insurance @ 09:38
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