Credit cards with the best insurance benefits Often people think credit cards only provide overseas travel insurance – and if you are planning a round-the-world trip or tend to travel frequently, travel insurance benefits will of course be a major consideration. However, there are other, less-known potential insurance benefits you can get when you sign up to a credit card. If you’re deciding which card to go with, we suggest you take a look at what you will be covered for should things go wrong.
What are purchase protection, price protection, and extended warranty insurance? Many credit cards offer these forms of protection in addition to travel insurance. Purchase protection is insurance for any purchases you make, using your credit card, for a limited time: usually 90 days. This means if the item is stolen or damaged, you could be covered for a replacement or refund of the item. Price protection is another interesting feature of some credit cards, and it essentially covers you if you are ripped off. For instance, if a product comes on the market at a price of $1000 and a few weeks later the price drops, for instance to $750, you can claim back $250. The terms of price protection are usually highly detailed and vary according to the credit card you get. Extended warranty insurance is insurance which extends the warranty on goods purchased with your card for a specified time, usually a year.
Important: Note that most, if not all, of these insurance benefits are only available to you if you have made the purchase of the item or the trip on the credit card.
Comparing credit cards There are many banks out there with a wide variety of credit card options available to suit different needs and incomes. Among Quashed’s top picks, in terms of providing comprehensive insurance for New Zealanders, are BNZ, Westpac, and American Express. Of all BNZ’s credit cards, the BNZ Advantage Visa Platinum card appears to come with the most insurance perks. Included in international leisure insurance for this card is insurance against rental vehicle collision and theft, and hijacking and detention, missed connection (you will be covered for alternative travel to an event if your flight is cancelled or something else delays you), loss of income, personal liability (if you cause harm to someone else due to your negligence) and even kidnap and ransom demands. When it comes to other types of insurance, this card also offers PriceGuard (price protection insurance). To be covered by this insurance your purchase must be at least $150 and no more than $5000: there are a number of categories of item that are excluded from this cover, so if this feature is something you are interested in it’s a good idea to read the fine print. Purchase protection on this type of credit card lasts for 90 days after purchase: and loss, theft and damage are covered. This card offers an extended warrantee on products you purchase for a maximum of a year after the original warranty on your purchase expires. If your original warrantee was for less than a year, your extended warrantee period will be as well. Interest rates on this card are 18.95%, the same rate applying to cash advances. Account fees are $45 per half-year. You can check out BNZ’s website to see the other cards they have on offer. Several Westpac credit cards offer overseas travel insurance, extended warrantee and purchase protection. The Hotpoints World Mastercard and the Airports World Mastercard appear to provide the greatest coverage, with up to 120 days overseas travel insurance, along with purchase protection and extended warrantees. Both the Hotpoints World Mastercard and the Airpoints World Master Card interest rates are lower than BNZ rates at 16.95%, with a cash advance interest rate of 22.95%. Account fees for both of these cards are $390 per year. Included in the overseas travel insurance are many of the same types of insurance cover offered by BNZ, but also unexpected accommodation/food costs (in certain circumstances), cover for the death of a relative, loss or damage to luggage, personal effects and travel documents, and delays. If you are a keen skier or snowboarder then it’s worth noting that snow sports are excluded from coverage: you will have to buy an extension to be covered for medical costs relating to snow sport injuries. When it comes to the other types of insurance that come with Westpac cards, the terms of purchase protection are 90 days of cover after purchase, again covering loss, theft and damage. The terms of the extended warrantee are similar to BNZ, with an extended warranty granted for a maximum of a year. These cards do not appear to offer any price protection. Check out Westpac’s website for information on other available credit cards. American Express (Amex): The American Express Platinum Airpoints credit card is available in New Zealand and offers travel insurance, and Smartphone insurance. Among this credit card’s points of difference are, cover for things that happen when you’re travelling around your own country, as well as overseas. Your partner and any dependent children you have (under the age of 24) are also covered by your travel insurance. This credit card rates are 19.95% and the account fee is at $195 per annum. Included in Amex’s travel insurance policy are cancellation cover, resumption of journey cover, damage to rental vehicle, bags, money and documents cover, accidental death and medical expenses emergency cover. However, Amex does not offer insurance against detention or hijacking, or kidnap and ransom, on this card.
Further insurance included with your Amex credit card is purchase protection (again for 90 days). Amex’s insurance providers will also cover the cost of repairing your Smartphone should it get broken: however you also have to pay an excess, 10% of the cost. More options for New Zealanders via American Express, including the more expensive American Express Platinum credit card, are available on the Amex website.
Which card is right for me? If you’re trying to figure out which card suits your lifestyle and your income, the good news is there is a plethora of information online: and there is also Quashed, which allows you to see your credit card insurance benefits when you sign up! Quashed is free and it allows you to see summaries of the different insurance perks that come with different credit cards. Add your credit card to the dashboard if you want to remind yourself of exactly what insurance coverage it includes. For more information on the terms and costs of each credit card, we recommend you take a look at the information provided online by banks or contact your bank directly.
If you want any advice on insurance, you can also always speak to an insurance adviser via Quashed: chats are free and it's easy to find a time that works for you on the platform.