Several major Australian banks are reducing or removing the complimentary travel insurance they provide to credit card customers. If you're travelling soon, or are currently overseas, check what's changed before relying on your credit card for insurance.
Which credit cards are affected?
Any credit card that includes complimentary travel insurance may be affected by these changes. While some banks have already made changes to their policies, some may make them in the coming months. Some cards may remain unchanged.
Pay close attention to any communication from your credit card provider, as changes to your cover may affect your travel plans.
What's changing?
The changes vary widely between banks and credit cards. Some banks are removing complimentary cover altogether. Others are reducing what they cover by shortening the maximum coverage period or limiting benefits. The changes apply to domestic and international travel.
Are you still covered?
These changes don't just affect new cards.
The policies for existing credit cards are also changing. Don't assume your credit card still comes with travel insurance for your next trip, even if you have used it before.
Before you travel, find out if:
- your card still comes with any complimentary travel insurance cover
- the insurance that comes with your credit card still provides enough cover for your trip.
If your credit card still includes some level of travel insurance cover, the types of claims and expenses may now be reduced. You may have lost cover for:
- medical expenses
- delays and cancellations
- luggage loss and damage
- rental vehicle excess.
Your trip may also now be longer than the maximum period covered by your insurance.
Carefully read the Product Disclosure Statement (PDS) for your credit card. Check:
- what the eligibility and activation requirements are
- if there are limits on trip duration or location
- what activities and claims are covered
- what the excess is
- what the exclusions are
- if the insurance covers family members travelling with you.
When you check your credit card, pay attention to any effective from or to dates in the policy. Your cover may be different depending on when you booked your trip and when you're travelling.
If you have any questions about how your travel insurance may be affected, contact your credit card provider.
Comprehensive travel insurance is always the best option for overseas travel. Read the CHOICE travel insurance buying guide for advice on how to choose the right policy.