Nationwide FlexAccount travel insurance good deal?
|Protection | Household Insurance
Asked by zoegriffiths, submitted
04 October 2010.
Is the new free Nationwide travel insurance a good deal, or are you better getting extra insurance? - i.e. is it full of hidden catches???
Answered by Justin on 07 October 2010
The travel insurance, which comes free with a Nationwide FlexAccount current account, is a decent policy subject to a few main restrictions:
- it only covers travel in Europe - not worldwide.
- it doesn't cover winter sports, e.g. skiing.
- it's only available to those aged 64 and under.
- you must be resident in the UK.
- you'll need to pay at least £750 into the FlexAccount each month for the cover to remain valid.
- you only get cover if you transfer all your existing direct debits and standing orders from another bank to the FlexAccount.
If none of the above are an issue then it's a good 'freebie' provided you wanted to open a Nationwide FlexAccount anyway.
The travel insurance covers multiple trips subject to a maximum of 31 days per trip, which is pretty standard, and coverage is mostly more generous than average. Medical expenses coverage is £10 million, personal liability £2 million, cancellation charges £5,000 and baggage £1,500. While the excess charge (i.e. the amount you must pay per claim) is generally £50 or less.
To buy a similar policy would cost around £30 a year per person, or around £45 if you want winter sports cover.
As there's no monthly fee on the FlexAccount the bundled travel insurance seems a good deal. If you're likely to travel outside Europe or take a winter sports holiday then Nationwide allows you to upgrade your cover, but the cost of doing so might be higher than simply buying another policy elsewhere - in which case the bundled insurance would be rather pointless.
If you're likely to use an overdraft then the FlexAccount might not be the cheapest option - the interest rate is 18.9% which could soon erode the benefit of the free insurance.
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