Frequent Flyer Points Credit Cards

[Redbaron]

While I've never been a fan of credit cards, and paying interest and fees to banks and financial institutions have always made my skin crawl, I might be ready to take the plunge... I'm a Qantas Frequent Flyer Card holder (though I can't remember the last time I flew with them), and looking at the HSBC card. Obviously I'll be paying the thing off in full each month - 20% interest rate (as they all are) is highway robbery.

 

 

While the annual fee seems steep ($200) it covers travel insurance, and looking at the fine print (through Zurich Insurance) it seems to cover all that I would need. Medical unlimited, and a few grand on personal effects. The only personal items I have ever worried about insuring whilst abroad is my camera gear (worth a few thousand dollars) as everything else is easily replaceable (clothes etc) cheaply.

 

Question - Is the insurance which comes with the credit card generally regarded as enough for trips to LOS? The CC annual fee of $200 is less than what I pay for insurance anyway for one trip, and as I rapidly approach 40, I find myself in the position to take 8 to 12 weeks off a year which would equate to 2 or more overseas trips. Therefore the fee would actually save me money by not having to pay for travel insurance.

 

The 20,000 free points and 2 free trips to the Qantas club per year are added sweeteners. For what it's worth, 60,000 points gives me a free return flight to LOS, and as Qantas for whatever reason is now comparable to the Asian airlines, if I'm flying them I may as well make use of the rewards. With or without the Credit Card, I will be earning points on flights, groceries and fuel - if I get the card, I'll earn it on anything I buy using the card, even if I pay the card off instantly. Bills, toys, and double dipping on certain things.

 

Any advice, as always, greatly appreciated.

[dean]

You would probably get a more knowledgeable response by asking the same question on flyertalk.com Mt only concern would be how easily can you use Quantas points/miles. If you are extremely flexible on travel dates, it should not be a problem, but I know nothing of Quantas FF program.

[Horneytorney]

read the fine-print! there are usually certain conditions (like pay for the entire trip like air fare and accommodation) by credit card etc.) for coverage. also a lot of exclusions.

I consider such travel insurance by credit card as a non value; I am insured for health and accident separately

[pasathai1]

I have American airlines card, fly free every year ( I use it for my business, so lots of points)

 

I also have ( not for much longer though) A Korean air card, the down side with that card, and others I have looked into like British air ( 50K points sigh up bonus in some cases) is the fuel and tax charges.

 

AA card first/business class san/bkk/san total out of pocket cost $47, Kal lax business class/hkt/lax cost $480.

[Redbaron]

Thanks lads, not really concerned about how easy it is to redeem points/miles (a mate of mine tells me he has no trouble, and does it regularly), just if the insurance is enough to cover me.

FWIW I read the fine print and yes, HT it does state the travel tickets (flights) must be paid for using the ccard.

[WorldFun]

seems like a fine deal

i've used the medical (travel) insurance on my credit card occasionally without much hassle

[Horneytorney]

seems like a fine deal

i've used the medical (travel) insurance on my credit card occasionally without much hassle

like for what? cure your STD, that you caught in SEA?

[kamui]

Thanks lads, not really concerned about how easy it is to redeem points/miles (a mate of mine tells me he has no trouble, and does it regularly), just if the insurance is enough to cover me.

FWIW I read the fine print and yes, HT it does state the travel tickets (flights) must be paid for using the ccard.

 

I hope the insurance offered with credit cards in your country is better than for German credit cards. Just last week 20 cards were tested (including Lufthansa), and _only one_ card was recommended. All other card's travel insurance was worse than any common travel insurance you can by for cheap (around 20 € for 3-4 weeks holiday) in Germany. In Germany it is recommended to take the cheapest miles point card and buy travel insurance separately.

 

As always the devil is in the details: For some medical travel insurances you'll have 20% patients contribution, which of course could add up to thousands of EUR in case of a severe accident. Other insurances decide by themselves (not the meds) if you need a special flight back home, e.g.

[kamui]

FWIW I read the fine print and yes, HT it does state the travel tickets (flights) must be paid for using the ccard.

 

This is one of the major problems with these cards. For example some require, if you have a crash with a rental car it must have been paid with the credit card, e.g. I would never trust this kind of insurance. I would only trust a card which covers you regardless how you paid the flight, train, car whatever.

[Redbaron]

Yeah it is a bit of a conundrum. Going to see my Dad this afternoon, he's an expert on these things.

 

Two points on the insurance - the flights (nothing else) needs to have been paid using the card (or 90% of the flight), something I don't see as an issue since I generally buy online anyway. Car rental is covered and does not have to be paid with the card. Obviously need receipts etc though. I'm tipping hiring a car from a bar paid in cash etc would not be covered with any insurance unless they are a licenced car rental mob.

 

As stated, all I'm really considering is the health/repatriation part of it and if it's "safe" to rely on. I have no pre existing conditions, don't hire cars and don't carry anything with me on holidays that would be devastating to lose (apart from the camera).

 

Regarding the $199 annual fee - this could be offset by the cost of the insurance (last trip cost me $100 for 3 weeks, which was a cheap one) and the two Qantas club tickets which are selling on ebay for $45-$60 each, effectively making up for the annual fee.