SBB Public Transport Letter Of Cover

Dear sir/madame,

I recently received mail from the SBB advertising a "Public Transport Letter Of Cover". What is your opinion on this insurance? Is it useful, necessary or useless?

Hi there,

The Public Transport Letter Of Cover from the Swiss federal railway SBB/CFF is an insurance for users of public transportation. It costs 27 francs per year.

This insurance covers the following hazards:

• Up to 500 francs per year towards the cost of replacing lost or stolen identification documents or personal cards.
• Up to 500 francs per year towards the cost of replacing lost or stolen house keys.
• Up to 1000 francs per year towards unexpected costs resulting from train delays of more than 30 minutes (taxi fares, hotel stays, phone calls, etc.)
• Luggage insurance: Up to 1000 francs per year.
• Up to 2000 francs per year towards costs incurred by fraudulent use of stolen mobile phones.
• Up to 5000 francs per year towards costs incurred by fraudulent use of stolen credit cards.
• Up to 1000 francs per year towards losses incurred through theft incurred in relation to cash withdrawals at ATMs.

No deductible or other out-of-pocket costs apply. The insurance is underwritten by Allianz Global Assistance, a major travel insurance provider.

Limitations:

This insurance only covers you during travel on public transportation within Switzerland. You are covered while waiting for directly-connecting rides on public transportation.

Verdict:

With an annual premium of 27 francs per year, the SBB's Public Transport Letter Of Cover is relatively cheap. However, you are only covered when using public transportation in Switzerland. Unless you use public transportation a lot, you will not likely benefit from this coverage. If your household insurance policy includes coverage for simple theft away from home, then you already have coverage against theft while traveling. However, if you do use public transportation frequently, then getting this insurance can make sense considering that the chances of personal property being lost or stolen while using public transportation are relatively high.

Best regards from Moneyguru

More on this topic:
Simple theft away from home explained
Travel insurance comparison
Travel inside Switzerland: What is the cheapest way to get around?