What is complimentary credit card travel insurance?

When planning a holiday, there are many choices of places where travellers can purchase travel insurance. Complimentary credit card travel insurance is what credit providers offer their customers as an added incentive to their policies. This type of policy may seem a little more restrictive as it doesn’t have the full range cover that a specialised travel insurance provider can offer. Depending on the tier of your credit card – silver, gold, platinum or the elusive black card, there are different levels of cover to consider.

VISA travel insurance, Mastercard travel insurance, Diners travel insurance, Amex travel insurance or smaller credit card issuers offer complimentary credit card travel insurance for cardholders. It is best to consider checking out their Product Disclaimer Statements for inclusions and exclusions of insurance cover.

Often, you will need to have purchased some amount of your flights or accommodation on the card for it to activate complimentary credit card travel insurance. Some credit card providers require you to contact them to activate the complimentary travel insurance.

Though it can certainly seem like an easier and often cheaper alternative to purchasing travel insurance from a travel insurance provider, certain benefits may not be covered and the benefit limits may not be as high. Although travel insurance provided by your credit card may not cater to every traveller like travel insurance from a travel insurance provider does, many travellers choose complimentary credit card travel insurance because of the convenience.

Why do credit card companies offer complimentary travel insurance?

About 70% of Australians adults own a credit card which is a whole lotta moula! Credit card companies like VISA, Mastercard, Diners and Amex want you as a customer and offer incentives such as Frequent Traveller Points, interest free periods and of course, complimentary ‘travel insurance’. This means that customers are able to be covered for their travel insurance through their credit card provider, so long as they meet the eligibility criteria.

It is important to know that if you need to make a claim you would do so directly with the travel insurance provider and not the credit card provider.

As an example, Commonwealth Bank Gold, Platinum and Diamond credit card have different levels of medical and contents benefits with the same benefits for travel. If the traveller pays $1000 of their travel costs on the card they are eligible for travel insurance, including for their spouse and children. If the traveller takes Diamond cover the insurance is for 12 months, the Gold covers you for 3 months*.

Some of the well-known credit card travel insurance providers include:

• Mastercard Travel Insurance
• Westpac Travel Insurance
• VISA Travel Insurance
• Amex Travel Insurance
• ANZ Travel Insurance
• Bendigo Bank Travel Insurance
• Commonwealth Bank Travel Insurance
• HSBC Travel Insurance
• Bankwest Travel Insurance
• Bupa Travel Insurance

Hidden costs of complimentary credit card travel insurance

In theory, it may seem as though you are not ‘paying’ and getting free travel insurance. However, keep in mind that you may be paying for annual fees or interest on outstanding payments. On top of this, be mindful of potential hidden costs or fees if the unexpected happens on your holiday! These could include:

• Higher excesses
• Benefit limits not being extensive enough to cover your expenses
• Not having a dedicated travel insurance claims team that are easily accessible
• You may have to activate a card or purchase your trip under specific conditions.

What are the differences between complimentary credit card travel insurance and sought out travel insurance?

‘Intended’ or ‘sought out’ travel insurance from a travel insurance provider offer specific levels of cover to suit your travel needs. Some travel insurance companies may not require medical checks before taking out a policy whereas some may require a verified medical record before offering you a policy. The questions a travel insurance provider may ask include whether you have any pre-existing medical conditions and whether this may require a letter of approval from your doctor. It is important to ask your travel insurance provider about their requirements for taking out a policy as most have exclusions that should be taken into account before purchasing a policy.

Complimentary credit card travel insurance is considered a luxury add-on to your normal credit card provider. Even though taking out complimentary credit card travel insurance such as those offered by Westpac Travel Insurance, Amex Travel Insurance or VISA Travel Insurance may be considered ‘complimentary’, this may not necessarily be the case. Travel insurance from a credit card provider or your bank is considered complimentary because you do not have to pay upfront for the coverage. Travel insurance cover can include ambiguous conditions or varying exclusions. It is worth researching if there is an age limit on travel insurance policies issued by a credit card provider. There would most certainly be General Exclusions along with a claims process that is best looked into, before committing to complimentary travel insurance from your card provider.  

Both complimentary travel insurance and travel insurance purchased through a stock standard travel insurance provider should offer luggage coverage – to a specific limit and other benefits like cancellation, trip delays and personal liability. Always read the policy wording to be sure.

Companies that offer complimentary credit card insurance include:

• Amex Travel Insurance*
  • Underwritten by Chubb Insurance Australia Limited
  • Started over 50 years ago
  • Based in Sydney
• VISA travel insurance or Mastercard Travel Insurance*
  • Depending on which provider you go with VISA or Mastercard travel insurance can be underwritten by companies like Allianz
  • Branches in Sydney and Queensland

Limitations and restrictions of Credit Card Travel Insurance

Travel insurance with your credit card provider is a luxury that can come with possible restrictions including:

• If you don’t have a credit card, you’ll need to apply and pay an annual fee
• Travel insurance with the card may require ‘activation’ by contacting your credit card company. Never assume you are automatically covered.
• You may need to pay for a portion of your trip on the credit card to activate the travel insurance
• There may be an extra charge to cover your spouse and dependents not on your credit card
• Needing to have a return ticket
• Partial medical coverage or limited medical benefits
• Some regions may not be covered 
• There may be a time limit you can have the insurance cover for
• Higher excess
• Pre-existing medical conditions that are not automatically covered
• No domestic travel insurance cover
• There may be an age cut off
• If you are booking a hotel or ticket with your credit card there may be a surcharge, especially when activating the insurance.

It is important to remember credit card providers are not specialised travel providers. Travel insurance is a legal contract between you and the insurance provider to cover you for unforeseen and unexpected costs. It is important to remember that credit card providers may not have the same level of dedicated expertise that travel insurance companies have.

Complimentary Credit Card Travel Insurance inclusions

It is important to check with your credit card provider the level of cover you have, as the benefits and benefit limits are likely to vary depending on the type of credit card you have. For example, a standard credit card is unlikely to offer the same level of travel insurance cover as a double diamond platinum credit card, but this depends on your card provider and their PDS*.

Typical benefits that credit card companies offer on their travel insurance policies:

• Medical cover and assistance*
• Cancellation*
• Cover for luggage, travel documents and credit cards*
• Dependent under 21 are covered for free*

Why choose Fast Cover travel insurance?

• Fast Cover only sells travel insurance, making us travel insurance specialists
• Dedicated 24/7 Emergency Medical Assistance team
• Customer service and claims team based in Sydney
• You don't have to 'activate' your travel insurance before you go, simply complete a fast quote and purchase online or over the phone in minutes.

Though it may seem cheaper to just take out credit card travel insurance, cheaper is not always better if it isn’t suitable for your needs.

Do you trust your credit card provider in an emergency situation whilst travelling?

This is the question you should ask yourself when you are considering whether you should utilise the complimentary insurance that comes with your credit card or instead purchasing a policy from a travel insurance company. If you’re confident that your credit card travel insurance can offer you the assistance you need if you end up sick or injured in a Thai hospital, or are robbed of all of your belongings in South America, or you need to be airlifted from a cruise ship, then credit card travel insurance may very well suit your needs.

The choice is yours

Many who believe that travel insurance is not a compulsory purchase have probably never had anything happen to them while travelling. Regardless if you are taking out travel insurance from a credit card provider like VISA travel insurance, Amex travel insurance, or taking out a travel insurance policy with a specialised travel insurance provider like Fast Cover, travel insurance should always be seen for what it is – a necessity.

*All information is subject to terms and conditions according to their Product Disclosure Statement (PDS). Fast Cover PDS can be found here

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