Save $300+ on travel insurance with your free credit card insurance – but is the cover any good?
Key takeaways
- Your credit card may include complimentary travel insurance, which can save you hundreds of dollars when you go overseas.
- Cover can extend to partners and children, but eligibility, spending requirements and trip limits apply.
- Free cover is usually pretty comprehensive, but check the specifics of your policy before you rely on it.
Many Australians already have travel insurance sitting in their wallet and they don't even realise.
Loads of credit cards come with complimentary international travel insurance, which could save you the cost of a standalone policy.
But cover isn't always automatic; the coverage doesn't always cover your travel companions; and there may be some restrictions.
We looked at 3 holiday scenarios to see where, if you already have travel insurance on your credit card, are you actually covered for what you need? Or is travel insurance still a good idea?
→ For the purposes of comparison: we selected one credit card with complimentary travel insurance (Qantas American Express Ultimate Card) and used it across all scenarios for consistency.
1. Solo trip to Bangkok
- 40-year-old man
- Travelling solo to Bangkok
- Duration of 1 week
For a straightforward 1-week holiday, credit card insurance could be an easy win. If you already have an eligible card, you can book at least some of your trip with the card (there's usually a minimum spend of $250 to $500), and check if you need to activate the cover before you leave.
| Policy | Finder Score | Medical | Cancellation | Luggage & Personal Belongings | Default Excess | Total Price |
|---|---|---|---|---|---|---|
| ReadySet Ultimate Single Trip | 9.9 Excellent | Unlimited | Unlimited | $15,000 | $200 | $77.28 |
| Fast Cover Comprehensive | 9.8 Excellent | Unlimited | Unlimited | $15,000 | $200 | $97.99 |
| Southern Cross International Comprehensive Single Trip | 9.6 Excellent | Unlimited | $2,500 | $25,000 | $200 | $72.24 |
| Qantas American Express Ultimate Card | 9.8 Excellent | $2,500,000 | $30,000 | $10,000 | $0-$250 | No extra cost |
2. Couple heading to London
- The same man above and his 38-year-old partner
- Travelling to London
- Duration of 2 weeks
Adding a partner means checking whether you're both eligible – and most of the time, you will be. Credit card insurance policies often cover your spouse or partner when you're travelling together, provided you're all on the same itinerary.
| Policy | Finder Score | Medical | Cancellation | Total Price (4 travellers) | Excess | Luggage and Personal Belongings |
|---|---|---|---|---|---|---|
| ReadySet Ultimate Single Trip | 9.9 Excellent | Unlimited | Unlimited | $120.28 (promo, was $126.61) | $200 | $15,000.00 |
| ReadySet Premium Single Trip | 9.6 Excellent | Unlimited | $20,000 | $107.40 (promo, was $113.05) | $200 | $6,000.00 |
| World2Cover Travel Insurance | 9.6 Excellent | Unlimited | $25,000 | $176 | $200 | $7,500.00 |
| Qantas American Express Ultimate Card | 9.8 Excellent | $2,500,000 | $30,000 | $10,000 | $0-$250 | No extra cost |
3. Family holiday to Fiji
- The same couple above and their two children, aged 10 and 12
- Travelling to Fiji
- Duration of 10 days
This could offer the biggest potential saving, as some credit card policies cover a cardholder, their partner and their dependent children. When I travelled with my family to Europe for 3 weeks, we were all covered with my credit card travel insurance, which was a huge savings.
| Policy | Finder Score | Medical | Cancellation | Total Price (2 travellers) | Excess | Luggage and Personal Belongings |
|---|---|---|---|---|---|---|
| ReadySet Ultimate Single Trip | 9.9 Excellent | Unlimited | Unlimited | $167.78 (promo, was $176.61) | $200 | $15,000.00 |
| Fast Cover Comprehensive | 9.8 Excellent | Unlimited | Unlimited | $193 | $200 | $15,000.00 |
| Insureandgo Gold Policy | 9.8 Excellent | Unlimited | Unlimited | $330.63 (promo, was $367.37) | $200 | $15,000.00 |
| Qantas American Express Ultimate Card | 9.8 Excellent | $2,500,000 | $30,000 | $10,000 | $0-$250 | No extra cost |
Our verdict on free credit card insurance vs paid policies
The international travel insurance that comes with credit cards is comparable with standalone, paid policies. Both policies require you to disclose pre-existing conditions, and if you have specific concerns – if you're pregnant, for instance – you may want to confirm exactly what's covered.
But generally, your credit card's travel insurance could save you hundreds of dollars on insurance and offer great value, especially if you travel regularly.
One catch: these cards often have a high annual fee of $200 to $450, so don't get a credit card just for complimentary insurance
Compare the cover, conditions and exclusions, and run the numbers on a travel insurance quote vs annual fee to make the right call
Before you rely on your credit card, check:
- Does it cover everyone? Partners and kids may be covered, provided you meet a minimum spend per traveller – check the fine print.
- How do you activate it? Sometimes it's activated automatically once you meet a minimum spend/book travel with the card, like flights or hotels.
- Are there trip limits? Check your holiday falls within the maximum duration. With my card, the limit was 90 days.
- Are my pre-existing conditions covered? Usually, they're not – but paid policies can exclude them, too. If in doubt, ask.
- What's the excess? It's worth checking how much you'll pay if you need to claim.
And the big one: does your card still offer travel insurance? Loads of credit card providers are axing or reducing the complimentary insurance offered with their cards, ahead of the October 1 credit card surcharge ban.
We'll be updating our pages regularly with the latest credit card changes and news, so you can make sure you've got the right card to suit your needs.
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