Is credit card travel insurance enough?

Lots of credit cards come with complimentary travel insurance, as part of their special perks. The cover is included at no extra cost, which means you don't have to purchase a seperate travel insurance policy.

But card policies aren't all the same. What's covered, who's covered and what you need to do to activate it can vary a lot from card to card. Some banks have also changed their cover recently, as part of the October 2026 credit card changes.

So, is credit card travel insurance still enough to cover you for a trip abroad? Find out how credit card travel insurance compares with a standalone policy below.

What is credit card travel insurance?

Credit cards often come with benefits and perks; a really common one is complimentary travel insurance. Credit cards with travel insurance included are often offered by the companies that also have frequently flyer programs, like Qantas and AMEX, because they're targeting the regular jet setter.

You'll generally get basic international and/or domestic coverage for you, your partner and your direct family, if you're traveling together. While the insurance is free, you typically have to pay for your return travel with the credit card.

Credit card travel insurance pros and cons

Here's a really quick breakdown of the pros and cons of credit card travel insurance:

Is credit card travel insurance worth it?

Your credit card's travel insurance is sometimes all you need, but there are still reasons to take out a standalone policy. Certainly it's worth it if the alternative is not having travel insurance at all! But there are definitely situations where you should look at a standalone policy, including:

• You want a low excess: Credit card travel insurance often has a $500 excess minimum. That means you can't really make claims for anything under that price.
• You need multiple people covered: Most credit card travel policies cover your partner of family as well, but not always.
• You have a medical condition: Credit card policies won't always cover a pre-existing condition.
• The limits are lower: Free travel insurance from your credit card is generally a fairly basic policy, and could leave you with out of pocket costs if things go wrong.
• No ski or cruise cover: Credit card travel insurance generally doesn't cover you on a ski or cruise holiday, and won't have the option to add it.

Our expert says: Don't make these mistakes!

"Travelling as a couple? Some credit card insurance covers you and a partner, but others don't. So check the fine print. Remember credit card insurance generally requires you to register, it isn't enough to just pay using your card. And it's rare for credit card insurance to cover domestic travel, for that, you'll usually need a separate policy."

Angus Kidman

Editor-at-large

Credit card vs standalone travel insurance

Excess amounts for credit card travel cover

Most credit card travel insurance policies have a $500 minimum excess, much higher than the $200 figure which is more common for stand alone policies. The excess is the amount you will pay out of pocket when you make a claim, so a higher excess makes it harder to claim in some situations.

For example, my luggage was delayed for just over 24 hours on a trip to Scotland. I could have made a claim to buy some essentials, but I'd have had to pay that $500 excess. Instead, I persevered with what I had in my hand luggage, since there's no way essentials would have cost me as much as $500.

Credit card travel insurance for multiple people

You'll generally want travel insurance for your entire party, especially if you're travelling with your family. While some credit card travel insurance offers free cover for your partner and children, not all of them do. On the other hand, traditional travel insurance for multiple people often comes with a discount.

If you're not sure, you should call and ask your credit card company. I looked through the product disclosure statement (PDS) of several complimentary travel insurance policies and it wasn't always clear it would cover more than the cardholder.

Credit card travel cover for pre-existing medical conditions

Standard travel insurance can can cover some pre-existing medical conditions. Insurers have made it a fairly straightforward process. If your conditions aren't listed in the PDS as automatically covered, you'll need to fill out a short questionnaire. You'll then find out, typically online within minutes, if your condition can be covered, and whether it will be more expensive.

Credit card travel insurance doesn't typically have this flexibility. It will simple not cover you for claims related to a pre-existing condition, which could be as simple as having asthma.

It's a similar issue if you're over 79. Lots of standard travel insurance policies can cover you, but many credit card policies won't.

Benefit limits and credit card travel insurance

Some complimentary insurance products come with lower limits than standard travel insurance. As a benchmark, a standalone comprehensive travel insurance policy can offer unlimited medical cover, unlimited cancellation, $25,000 for lost or stolen luggage and $30,000 for travel delay expenses. Credit card travel insurance policies often come in way below that.

Think of it this way: credit card travel insurance generally doesn't have a price increase for countries like the USA or Japan, despite those countries having extremely expensive healthcare systems. Now that might sound great, but there's a reason these destinations should cost more for insurance. Not only is medical care expensive, flights and accommodation are also really pricey.

If you wind up in trouble in a really expensive country, you'd be glad to have taken out a more comprehensive travel insurance policy than your credit card offered.

Check you cover before you fly

If you're confused, call your credit card provider and find out what's covered. Some cards offered super basic cover, with travel insurance protection only for limited circumstances like transit accident insurance. But some cards will cover you for a much wider range of mishaps, including rental vehicle excess cover, cancellation or travel inconvenience cover and medical cover.

Keep in mind you generally have to pay more for better cover.

When a standalone policy makes more sense

Card cover can still work well for a simple trip if your card includes comprehensive cover and you meet all the conditions. But a standalone travel insurance policy is probably the better option if:

• Your card no longer offers cancellation, delay or luggage cover
• You have a pre-existing medical condition
• You're going on a cruise, skiing or doing anything adventurous
• You're heading somewhere with expensive healthcare, like the US or Japan, and want higher limits
• You want cancellation cover from the day you book

Frequently asked questions

• Is travel insurance on credit cards worth it?

  If you already have a credit card and use it regularly, the complimentary travel insurance included with your card can save you money. However, not all policies are created equal. Most do not cover pre-existing conditions and there are still some that do not cover claims related to COVID.

• Do credit cards automatically have travel insurance?

  Credit cards will typically include some travel insurance but don't just assume that they do. Call the provider to find out and make sure it covers more than the basics (e.g. medical expenses and personal liability).

• What is the difference between credit card travel insurance and travel insurance?

  Many credit card travel insurance policies cover the same things as standard travel insurance now. This can include medical expenses, cancellation cover, lost luggage and COVID-related expenses. However, this can vary. Credit card insurance typically doesn't cover pre-existing conditions, standard travel insurance can. Similarly, many credit card policies don't offer cover if you're over 79 and charge a bigger excess than a standalone policy.

• What does credit card international travel insurance cover?

  If you get a credit card with comprehensive overseas travel insurance, it will typically include cover for:

  • Emergency medical issues
  • Cancellation (for specific situations)
  • Major flight delays
  • Lost and stolen baggage, travel documents and valuables
  • Hijacking, kidnap and ransom
  • Personal liability
  • Accidental death
  • Funeral expenses

• Do I need to activate my credit card travel insurance?

  It depends on your card. Some cards now need you to activate your cover before you leave Australia, while others need you to pay for some or all of your travel on the card. It's a good idea to check your card's latest policy booklet for the exact rules on cover activation.

• What happens to trips I booked before the credit card changes?

  It depends on your bank. Some will honour the old cover for trips booked before the change, as long as you met the conditions at the time. Others base your cover on the policy in place when something goes wrong, not when you booked. It's best to check your bank's website or give them a call to be sure.

• Does credit card travel insurance cover domestic trips?

  Yes, but credit card travel insurance is more geared towards overseas travel, so domestic cover can be limited. If you're travelling within Australia, check what your card includes or consider purchasing a domestic travel insurance policy.

• Can I use credit card insurance and a standalone policy together?

  You can have both, but you can't claim the same costs twice. Some people use a standalone policy to fill the gaps their card doesn't cover, so it's worth comparing what each one includes before making a decision.

To make sure you get accurate and helpful information, this guide has been edited by Tim Bennett as part of our fact-checking process.

Written by

Ceyda Erem

Senior writer

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Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

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