Certain bank accounts require a monthly fee. But in return, you’ll get access to a range of benefits. One perk on offer from so-called ‘packaged accounts‘ can include travel insurance.
Having travel insurance automatically included with your bank account can be convenient, as you won’t need to take out a travel insurance policy each time you head abroad. But is it the right option for you? We take a look.
Should you get a bank account with travel insurance?
Whether you should get a bank account with travel insurance included ultimately depends on your situation. For a start, you’ll need to be comfortable paying a monthly fee for your bank account. Usually, this will be around £10 to £30 a month, depending on the account.
You should compare the cost of this fee against the cost of buying a separate travel insurance policy to see what works out the most cost-effective. To do this, multiply the monthly account fee by 12 and compare it to a standard annual policy. However, keep in mind that many packaged bank accounts also include other benefits such as mobile phone insurance and breakdown cover as part of the deal, so you’ll need to work out how much these would cost separately to get a fair comparison.
Another key consideration is exactly what the travel insurance policy included in your bank account covers. For example, does it offer worldwide travel insurance, or is it only valid for European countries? Does cover apply to you and your family or only you? If it covers you as a family, do you have to travel together to be insured?
You’ll also need to check the following:
How much cover do you get for lost luggage, medical costs, repatriation, holiday cancellation and so on?
Will you be covered for winter sports or other hazardous activities? Or do you need to pay extra?
Are there any age restrictions? Certain policies won’t cover you if you’re aged 70 or over, for example.
Are pre-existing conditions included?
How long does cover last? Some policies might only offer cover for trips of up to 31 consecutive days, for instance.
Note that many travel insurance policies (whether they’re offered through a bank account or not) won’t cover pre-existing conditions and limit the number of days per trip before cover expires. But it’s important to compare exactly what you’d get with a packaged account and what buying travel insurance separately would cover you for before you can work out whether a packaged account is worth it.
Our expert says: Kate Steere explains whether a bank account with travel insurance is worth it
"It really comes down to convenience. While packaged bank accounts with travel insurance aren’t always the cheapest route, they do cross a major piece of life admin off your to-do list.
That said, check the fine print. A standard policy might not cover everything – especially if you have pre-existing medical conditions or are heading off for winter sports.
Where these accounts truly shine is for families. Bundling coverage across multiple people often makes a packaged account an incredibly cost-effective option."
Pros and cons of a bank account with travel insurance
Pros
Can work out to be cost-effective, especially if it covers the whole family
More convenient than applying for policies separately
Other perks might be included in the account, such as mobile phone insurance
Cons
It won’t necessarily be cheaper than applying for travel insurance separately
Exclusions will apply
If you don’t declare all pre-existing medical conditions, you could invalidate your policy
Bottom line
Applying for a bank account with travel insurance included offers the convenience of never needing to remember to take out a travel insurance policy before you go on holiday. If you have a family, this can be particularly beneficial if the policy covers all of you. Plus, if your policy includes cancellation cover, you’ll be automatically covered from the moment you book your next trip.
However, it’s crucial to check whether family members must travel together or whether cover also applies if you travel separately. You should also check exactly what is and isn’t included in the cover and whether the cost of the account is worth it.
Frequently asked questions
Yes, many packaged bank accounts that include travel insurance can be opened as a joint account. This means you’ll both be covered for the same fee.
This depends on the policy, but often, you’ll need to take out separate cruise cover. It’s really important to check the small print carefully to know exactly what you’ll be covered for. If you regularly go on cruises and the travel insurance included with the bank account doesn’t include cruise cover, a packaged bank account is unlikely to be the best option for you.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time.
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