What to know about travel insurance for your working holiday abroad

Chapter 5 of 7

Can’t I just rely on my credit card travel insurance?

Many credit cards such as Mastercard, Visa Premier, Visa Gold and more offer complimentary travel benefits—including medical insurance and trip cancellation—if you’re using your card to buy your plane ticket. 

All set? Not quite.

Shorter coverage period

Credit card travel insurance typically offers short-term coverage because their solution is designed for tourists. Some policies explicitly exclude “long trips”, which are sometimes defined as trips over 90 or 180 days. 

So you’re covered if you’re planning a three-month Working Holiday experience but you’re not if you’re going for the standard 12- or 24-month adventure—and some credit card companies won’t even offer coverage for the first three months of your trip because the duration of your stay abroad makes you ineligible. 

Limited coverage, lower limits and higher deductibles

This is a case of “read the fine print.” Plans that came at no extra cost with your credit card typically don’t offer extended or full coverage. For instance, they may not include hospitalization, repatriation, emergency medical care, accidents, etc.,—or only as an option. Sometimes, claims due to an accident are accepted but not claims due to an illness. 

Credit card travel insurance also tends to come with limited coverage amounts. For instance, medical expenses can be capped and this maximum is easily reached in case of major issues. Deductibles may be higher as well.

Finally, the claim process can be complicated and long, which isn’t great when you paid out of pocket and see your travel budget cut for weeks or months.

Read the fine print and watch out for exclusions limiting your coverage. Oh, and make sure your credit card doesn’t expire during your trip because it could affect your travel insurance!

The bottom line is, these credit card travel insurances are perfect for long weekend getaways and short trips but they aren’t designed for months-long adventures. 

Top-up with other insurers

If after reading the full terms and conditions you choose to go with your credit card travel insurance for the first few months of your adventure, you should still top it up with another travel insurance:

• To be covered for the entire duration of your stay abroad
• To have proof of insurance to show if needed 
• To make sure you get comprehensive healthcare coverage with hospitalization and repatriation

Don’t leave any gap between your credit card travel insurance and your own travel insurance. For instance, if your credit card travel insurance provides coverage for 3 months, let’s say from January 1 to March 31, choose March 31 as the start date for your own travel insurance. Coverage gaps could create issues with any claim you may have later on. 

And what if I have travel coverage through my bank, my healthcare system or another work-provided insurance?

The same caveat applies. Most of the time, travel coverage provided as a “side perk” is designed for short trips and it’s very limited. Read the contract and get the full details before considering yourself covered and good to go!