Credit card travel insurance

27 September 2021 By Crystal Moran

Complimentary or 'free' credit card travel insurance is a popular feature which many travellers rely on for cover during their travels. Checking the fine print of your credit card travel insurance policy terms is essential - otherwise, you might find common exclusions leave you out of pocket.

What is credit card travel insurance?

Credit card travel insurance is an insurance policy that is usually included with premium credit cards. While marketed as 'free' or 'complimentary', these policies are typically paid for through your annual card fees. The biggest misconception is that all credit cards come with travel insurance. This simply isn't the case and is usually a bonus reserved for premium cards such as Gold or Platinum.

If you already have a premium credit card, utilising the complimentary travel insurance offered by your bank can be great way to save money. You will need to check the benefits to ensure that the policy meets your needs and is suitable for your circumstances. If you're considering applying for a credit card for the benefit of travel insurance, you should consider the cost of the annual fee against a standalone travel insurance policy.

It is important to know that some policies only activate if you purchased your flights on your credit card, while others need you to call a hotline, and most don't cover pre-existing conditions. Understanding the fine print is essential for keeping eyewatering bills at bay but here we provide a few key pros and cons to look out for.

pros and cons of credit card travel insurance

Here's the top four pros and cons of complimentary credit card travel insurance:

Underwritten by quality underwriters

Most credit card policies are underwritten by the same companies as standalone policies, so you know legitimate claims will be paid.

May not cover pre-existing conditions

Most credit card travel insurance policies specifically exclude pre-existing conditions from cover.

No price increase as you get older

While standard travel insurance gets more expensive as you get older, there's no extra cost on credit card travel insurance policies.

May have age and duration limits

Many cards have an age limit or restrictions once you hit 75 years of age. Trip duration is often limited of 1 to 6 months, so you might not be covered at all even though you've paid your annual fee.

No price increase for expensive destinations

You don't have to pay extra to be covered for places like Japan and the USA, which typically cost more with standalone policies due to .

May not cover your activities

If you're going skiing, riding a motorcycle, or partaking in adventure activities be sure to check the policy detail as they may be excluded.

It's complimentary, or 'free'!

You've already paid for your policy using your annual fees, so there's no additional cost to you.

May cost more than a standalone policy

Annual card fees can be hefty. Depending upon your trip details, a standalone policy may be cheaper than your credit card annual fee.

Activating credit card travel insurance

You might think you're automatically covered by your credit card travel insurance, but most policies have some rules around eligibility and activation criteria so it's important to check the fine print. Common activation rules include:

1. Activation on purchase

your credit card trip insurance is automatically activated once you make a travel-related purchase on your card, such as flights or accommodation

2. Activation on value or percentage of trip purchases

some credit card travel insurance only applies if you've spent a certain value, like $250-$500, or a percentage amount (e.g. 50%, 100%) of travel expenses on your credit card.

3. Activation on flight purchase

Your trip is covered provided you've purchased a return flight on your credit card.

4. Activation on notification

You need to call your card provider or log in to their internet banking or app and notify them of your trip to activate the policy.

Check the table below for activation rules for popular credit cards, and check your policy documents to confirm.

compare credit card travel insurance conditions

Credit Card Company	Insurance Activation Rules	Eligible Cards	Underwriter
American Express	1. Ensure that you have one of the eligible Amex cards. 2. Buy a return flight from Australia. The full return airfare must be paid on your Amex card in order to activate your card. However, this is the only cost you must pay on your card to activate your cover. Your spouse and dependants are covered provided that their full return airfares were also paid for using your eligible Amex card.	American Express Credit Cards: Amex Explorer Credit Card, Amex Platinum Edge Credit Card, Amex Velocity Platinum Credit Card, David Jones Amex Platinum, Qantas Amex Premium, Qantas Amex Ultimate	Chubb View policy wording for various cards.
ANZ	1. Ensure that you have one of the eligible ANZ cards. 2. Spend at least $250 of your prepaid travel expenses on your eligible card. 3. Have a return flight booked. Your spouse and dependants are covered provided that they also have $250 of their prepaid travel costs paid on the card.	ANZ Credit Cards: ANZ Frequent Flyers Black, ANZ Frequent Flyer Platinum, ANZ Low Rate Platinum, ANZ Platinum, ANZ Rewards Black, ANZ Rewards Platinum, ANZ Rewards Travel Adventure	Allianz Australia Insurance Limited View the Premium Cards Insurances booklet (to be read with the Premium Cards Insurances Notification).
Bankwest	1. Ensure that you have one of the eligible Bankwest cards. 2. Spend at least $500 of your prepaid travel expenses on your eligible card, or redeem Bankwest More Rewards points. 3. Have a return flight booked. Your spouse and dependants are covered provided that they meet the same criteria as having $500 of their prepaid travel costs paid on the card.	Bankwest Credit Cards: Bankwest Breeze Platinum MasterCard, Bankwest More Platinum MasterCard, Bankwest More World MasterCard, Bankwest Qantas World MasterCard, Bankwest Zero Platinum MasterCard.	Zurich Insurance Group
Citibank	1. Ensure that you have one of the eligible Citibank cards. 2. Buy a return flight with one of the eligible Citibank credit cards. 3. Have a return flight booked. Your spouse and dependants are covered provided that they meet the same criteria as having their prepaid flights paid on the card.	Citibank Cards: Citi Prestige, Citibank Rewards Credit Card, Signature Citibank Rewards Credit Card, Platinum Emirates Citibank World MasterCard, Emirates Citibank Platinum MasterCard, Citibusiness Gold Credit Card	Allianz Australia Insurance Limited View Complimentary Insurance Terms and Conditions.
Commonwealth Bank	1. Ensure that you have one of the eligible Commonwealth Bank credit cards. 2. If you're looking for medical emergency and personal liability cover only, you're automatically covered with Commbank once you've booked your trip. If you're after more comprehensive cover including benefits such as luggage and cancellation, you will need to login to Netbank and follow the prompts to activate your cover. You will need to do this each time you travel, otherwise your cover reverts back to the basic cover. 3. You need to have a return flight booked in order to be covered. Spouse and dependants are covered provided that they are travelling with the cardholder during the trip.	CommBank Credit Cards: Commonwealth Bank Diamond Awards Credit Card, Commonwealth Bank Gold Awards Credit Card, Commonwealth Bank Low Fee Gold Credit Card, Commonwealth Bank Low Rate Gold Credit Card, Commonwealth Bank Platinum Awards Credit Card.	QBE View Credit Card Insurances Product Disclosure Statement and Information Booklet.
NAB (National Australia Bank)	1. Ensure that you have one of the eligible NAB credit or debit cards. 2. Spend $500 or more on your eligible card before you take off. Remember that the purchases need to be related to your trip, such as pre-booked airfares or accommodation. 3. Have a return flight booked. Your spouse and dependants are covered provided that they meet the same criteria as having $500 of their prepaid travel costs paid on the card.	NAB Credit Cards: NAB Signature, Platinum or Premium credit or debit cards. NAB Flybuys Rewards Card, NAB Qantas Rewards Premium Card, NAB Velocity Rewards Premium Card.	QBE View NAB Card Insurance policy wording.
Westpac	1. Ensure that you have one of the eligible Westpac credit cards. 2. Spend $500 or more on your eligible card before you take off. Remember that the purchases need to be related to your trip, such as pre-booked airfares or accommodation. 3. Have a return flight booked. Your spouse and dependants are covered provided that they meet the same criteria as having $500 of their prepaid travel costs paid on the card.	Westpac Credit Cards: Westpac Black Cards (Altitude Black and Earth Black); Westpac Platinum Plus Cards (Westpac Earth Platinum Plus, Westpac Altitude Platinum Plus, Altitude Qantas Platinum Plus); Platinum A Cards (Singapore Airlines Westpac Platinum credit card, 55 Day Platinum credit card, Low Fee Platinum credit card); Platinum B Cards (Earth Platinum credit card, Altitude Platinum credit card - including Altitude Qantas Platinum); Westpac Gold Cards (Singapore Airlines Westpac Gold credit card, Private Bank Gold Mastercard® credit card).	Allianz Australia Insurance Limited View Westpac Credit Card Insurance policy wording.

The information provided is factual at the time of writing and general in nature. We have not considered your personal circumstances. Eligibility requirements and terms and conditions for cover are subject to change from time to time. Please refer to your credit card provider and the latest policy wording prior to your travels.

Will credit card insurance cover you?

Spouse or family members

Some credit card travel insurance policies only cover the primary cardholder, while others will cover secondary cardholders, spouses and dependents, provided that they meet similar activation criteria.

Age limits

Many credit card travel insurance policies have an age limit of 75-80, so if you're a senior traveller, make sure that you know what your policies age limit is before you travel.

Trip length

While some credit card travel insurance policies will cover you for travel upto twelve months at a time, most have a limit of one to six months. If you're relying on credit card travel insurance and realise that it will run out before you get home, consider looking into a standalone comprehensive travel insurance policy for the whole trip, or for an already overseas policy for the remaining time.

what credit card travel insurance may not cover

As most credit card travel insurance policies are one-size-fits-all, they may not account for your specific travel needs.

Pre-existing conditions

Most credit card holiday cover has general exclusions for pre-existing medical conditions. If you have a pre-existing medical condition, like diabetes, asthma, or cancer, make sure your credit card travel insurance policy will cover you. If not, you may face hefty medical bills if something goes wrong overseas, or big losses if you have to cancel your holiday for health reasons.

Holiday activities

If you're looking to go skiing, cruising, riding scooters or motorbikes, or try adventure activities like scuba diving or hiking at high altitudes, check that these are covered by your credit card cover, as many brands exclude cover for these activities. Many credit card travel insurance policies are better for being beachside in Bali than basking in the view at Basecamp.

High-Value Items

Unless your policy has new-for-old replacement terms, high-value electronics like mobile phones, laptops, cameras and hearing aids may not be covered for their full value, as they will be subject to depreciation.

what credit card travel insurance covers

Generally speaking, most credit card travel insurance policies mimic many of the features of standalone comprehensive travel insurance products. However, as per the table above, some credit card travel policies only cover for medical coverage and public liability unless you activate comprehensive benefits prior to your trip.

Overseas emergency medical treatment

Cover for hospitalisation, general practitioner fees, surgery, and other medical treatment you experience a medical emergency overseas which is not due to a pre-existing condition.

Cancellation fees and lost deposits

Cover if you have to cancel your trip due to illness or injury, family emergencies, natural disasters or striking and rioting. Visit our cancellation cover page for more information.

Luggage and personal effects

Cover for items you take with you on your journey, and typically any items you buy overseas. Visit our luggage cover page for more information.

Public liability

Cover if you become liable for injury to another person or for damage to their property. Cover is generally excluded if you are operating a motor vehicle.

CREDIT CARD travel COVER FAQs

We get a lot of questions on credit card travel insurance. Here's some answers to our most common ones.

Is credit card travel insurance any good?

Whether credit card travel insurance is as good as or better than standalone travel insurance depends entirely on you and your circumstances. If you're going for a short trip, you've paid for your flight on your card, and you have no pre-existing medical conditions, taking advantage of 'free' credit card travel insurance might be a winner. But if you're going for a while, doing any adventurous activities, or you're got existing health issues, a standalone product may offer you the coverage you're looking for.

Which Australian credit cards come with travel insurance?

Not every credit card comes with travel insurance. Complimentary travel insurance is typically offered on premium credit or rewards cards that have higher annual fees. Check your policy documents for details or contact your bank. You can also check the table above for some of the more popular credit cards.

What is the best credit card for travel insurance?

The benefits you get with credit cards varies based on the type of card you have, the policy provider and your individual circumstances, so there isn’t actually a “best” credit card for travel insurance. Our table lists Australia's premium cards that provide travel insurance and outlines any activation criteria.

Can I cover my medical conditions with my credit card cover?

In most cases, pre-existing medical conditions will not be covered by travel insurance that comes with your credit card, but you may be able to get cover for this by contacting the insurer and paying an additional premium. You will need to check the Product Disclosure Statement (PDS), also known as policy wording to find out whether pre-existing medical conditions are covered. The alternative is a standalone travel insurance, learn more about covering your medical conditions.

Am I covered if I go skiing?

Like all insurances, some limitations apply to the travel insurance that comes with your credit card or rewards card and skiing is often one of them. Winter sports activities such as skiing and snowboarding are often excluded from credit card travel insurance, so if you're planning on hitting the slopes you should contact your provider to ensure that you have adequate cover for your planned activities. If not, opt for a standalone ski insurance policy.

Crystal Moran

With a research and journalism background, and certified in Tier 2 General Insurance General Advice, Crystal is passionate about investigating customers’ tricky travel questions and helping them find the answers they’re looking for. A writer and filmmaker whose favourite trips have been to film festivals in Cuba and South Korea, and campervanning around the USA, she loves getting to know new people and seeing a glimpse of the world through their eyes.

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pros and cons of credit card travel insurance