Following last week''s tragic rail accident, news has emerged that some passengers on the train are eligible for large insurance payouts. That''s because they paid for their tickets with a credit card. Even frequent travelers might not realize that credit card payment affords greater financial protection for a traveler. We spoke to a financial expert to find out more.

There are more and more ways to pay for train tickets, whether TRA or high speed rail. Most travelers choose cash or credit card. But did you know that with a credit card you get an extra layer of insurance?

Last week the TRA network suffered its most fatal accident in 50 years. The Financial Supervisory Commission revealed that three passengers on the train paid for their tickets with credit card. That entitles them to travel insurance compensation estimated at over NT$10 million. As this expert explains, credit card companies give customers liability insurance and travel insurance.

Credit card expert
I recommend that people pay for tickets for medium or long journeys with credit card, wherever possible. When you apply for a credit card, I recommend applying for the highest grade you can.

Cards from different banks and at different grades offer different levels of insurance. Validity periods, terms and conditions may vary.

Credit card expert
When you get a notice from the bank telling you it''s about to expire, get a new one as soon as possible. They usually remind you a month in advance. To avoid any issues, I recommend use the new card according to its validity period.

Apart from checking validity periods, also take note of which companies, like coach or ferry operators, aren''t included in the bank''s insurance policy. And if the passenger is not the cardholder, that could also void the insurance. Before taking out a credit card, always check the terms and conditions carefully.