Credit card travel insurance
Travel insurance with your credit card
Many credit cards come with 'complimentary' travel insurance but
will you be covered if something goes wrong on your trip? We
explain how you can check what you are covered for and how this
type of travel insurance works.
How credit card travel insurance
Many credit cards offer 'extras' to attract consumers in the
competitive credit card market. One common extra is overseas travel
insurance, covering you for your trip overseas in case something
goes wrong. Find out more about travel insurance.
The cost of the travel insurance that comes with some credit
cards may be called 'complimentary' but the cost of it is often
included in the credit card's fees (like the application cost,
annual fee or interest rate).
insurance through your credit card
To be covered you will need to activate the travel insurance.
You can usually do this by paying for part of your trip with your
credit card, for example:
- Paying for your overseas return flight with your credit
card - Some credit card providers will also cover you if
you use reward points to purchase your overseas return flight but
others will not.
- Paying a set amount of your overseas trip with
your credit card - For example, if you pay $1,000 of your
travel costs with your credit card before you start your trip. This
could be for your airfare, prepaid accommodation or airport
Each policy is different so make sure you check with your
provider how to activate it.
Whether to get separate
travel insurance or credit card travel insurance
When you're shopping around for travel insurance it is a good
idea to compare the cover you can get from your credit card, if
any, to the cover you can buy from a separate travel insurance
Many banks offer separate travel insurance as well as
complimentary travel insurance through their credit cards. Be
careful because there may be differences in the cover provided,
even when they are from the same bank.
Differences between separate and complimentary travel insurance
- How the cover is activated - separate
travel insurance usually does not need to be activated like credit
card travel insurance
- Who is covered - some policies don't
cover a spouse, children or additional cardholders, but others
- Cover limits - the amount you'll receive
if you successfully make a claim
- Exclusions - some exclude more events
than others (see
travel insurance exclusions)
Make sure you know which type of cover you are relying on and
check the terms and conditions of your policy.
Check what you're covered for
Most credit card providers have a booklet containing the terms
and conditions of their credit card travel insurance. You can
usually find this in the welcome pack for your credit card, on the
provider's website or you can ask them to send you a copy.
Be aware that most credit card travel insurance usually only
covers you for the trip you have paid for on your credit card and
only for overseas travel. If you want travel insurance for trips
within Australia, you should consider taking out separate travel
No policy is the same, especially when it comes to what's
covered and the exclusions. You should check the terms and
conditions to check you'll have enough cover.
If you are aged over 80, check your policy to see if you are
covered by your credit card travel insurance. Some policies have
Make a claim on your credit card
Many policies require you to take documentation overseas to be
eligible for travel insurance. These documents may include:
- A booklet explaining the terms and conditions
- Copies of your travel tickets
- Copies of your credit card statements
To make a claim you will need to contact the insurer that
provides the cover. The details of the insurer will be in the terms
Travelling overseas can create some great
memories. It pays to spend some time checking you've got the cover
you need before you go. You'll need this information to decide if
credit card travel insurance is enough for you.
Last updated: 12 Apr 2016