is yours enough or do you need extra coverage?

A significant proportion of Australians own one or more credit cards. But is the travel insurance often included with this popular payment method enough for your next trip abroad?

The last payment data published by the Reserve Bank of Australia (RBA) revealed that more than 13 million Australians held credit card accounts, while there were 17.5 million credit cards in circulation in June 2022. It is the equivalent of almost one credit card per adult.

Many credit cards offer a range of rewards and additional features, including travel insurance. Every Australian should consider travel insurance when venturing overseas. Many incidents can occur at any time and disrupt your travel plans. It is therefore a good idea to be prepared for unforeseen circumstances such as travel delays and cancellations, accidents and injuries, extreme weather events, global pandemics, civil unrest, etc.

When you could be happy to use your credit card for vacation expensescomparing your travel insurance options can provide you with more comprehensive and specialized coverage.

How does credit card travel insurance compare to standalone providers?

Travel is back on the cards for many Australians. In preparation for your next adventure, we’ve compiled a basic checklist to roughly compare the differences between credit card travel insurance policies and the coverage offered by stand-alone providers.

At first glance, it appears that standalone travel insurance policies offer a greater degree of flexibility and coverage for travelers. However, the above information should only be used as a guide in choosing the best policy for your needs.

What should you take into account when taking out travel insurance with a credit card?

Activation

A number of credit card companies will require you to activate your travel insurance policy before embarking on your trip. You may also be required to book return travel within Australia, as a one-way trip may not be covered. Check with your card issuer for details.

Excess

Excess fees for credit card policies are usually higher than for stand-alone insurance. Some card providers require a deductible of up to $500 when you make a claim, while standalone policies generally limit excess amounts to $100.

Family coverage

If you are traveling as a family, it may be beneficial to compare standalone travel insurance packages. Some credit card policies only apply to the primary cardholder and may not cover children or other family members. Others might apply a “minimum spend per person provision” to unlock coverage for additional travellers.

Additional activities

You can choose to participate in extracurricular activities such as renting a motorbike, skiing, canyoning, renting a boat, bungee jumping, attending music festivals, etc. Often these activities are not covered by credit card travel insurance. Finding a tailored solution that encompasses these efforts can be more beneficial.

Expensive items

When traveling, it may be useful to bring high-value personal items such as cell phones, jewelry, laptops, cameras, and hearing aids. Credit card travel insurance can be basic and generally does not cover these items.

Cash

Although we don’t use it often at home, when traveling cash can still be king depending on your destination. For this reason, credit card travel insurance can be useful as policies typically cover up to $500 in the event of cash being stolen from your person, while stand-alone providers typically offer coverage up to $200. .

For more details and to see what’s on offer, compare a range of credit cards that include free travel insurance.

Every travel insurance policy is different and it is advisable to read the Product Disclosure Statement (PDS) to determine all relevant details relating to your particular deal. The PDS describes the level of cover provided in each scenario where you may be able to make a claim.

Compare credit cards with free travel insurance: