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Holidaymakers waste money on travel insurance

Holidaymakers waste hundreds of dollars on travel insurance every year.

A study conducted by Sift revealed that a number of families were paying over the odds for insurance for their travels and the various activities they partake, with some of the cover they're paying for already protected just by using a credit card.

And Sift believe by using a credit card to book their trip, a family may be able to save up to $1000 - which is a neat sum given that the average family spend $4,700 on their vacations.

Writing in a foreword for the study, they shared: "The average family spends a whopping $4,700 on their vacations. From the airfare and rental car to the hotel, food, and activities, the cost adds up quickly. That's why the Sift team decided to take an in-depth look at the 20 most commonly used credit cards on the Sift app to see how to save you the most money on your next vacation. In the following study, we'll look at these cards to analyze things like money back on delayed flights and baggage, travel accident insurance, and restaurant reward points - added up, these perks could save you over $1,000 on your next trip!

"Travel insurance for a trip typically costs 4-10% of the total cost of the trip. That means if you're paying what the average family does for a vacation, you're looking at tacking on an additional $200 to $470 to your bill. What many don't know, however, is that credit cards come with many of these benefits! In this piece, we'll take a look at what your credit card comes with at no cost to you other than using your card to book your trip while also noting how the insurance compares to traditional travel insurance."

The study of the offers credit card companies give to consumers revealed there were benefits like up to $500 back for delayed flights or $3000 for delayed or lost luggage. They also discovered some credit card companies offered up to $10,000 in trip cancellation or interruption and up to $1,000,000 in travel accident insurance.

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