Aussies risk travelling uninsured as credit card changes take effect
Aussie travellers are being warned they could unknowingly be going on holidays uninsured after major changes to complimentary credit card travel insurance came into effect.
People are being urged to check their cover before their next overseas trip, due to significant changes being made to credit card travel insurance offerings.
Travel insurance is a need for any holiday. iStock
Reserve Bank of Australia reforms introduced on October 1 have removed card payment surcharges and reduce the interchange fees banks can earn from card transactions.
With banks set to earn less from card transactions, several have announced changes to the complimentary travel insurance benefits attached to some cards.
“If you’ve always relied on credit card travel insurance, check whether your card still provides cover and whether the terms have changed,” Natalie Smith, Marketing Director at Comparetravelinsurance.com.au, told nine.com.au.
“Check the medical, cancellation, luggage and delay cover, as well as any eligibility requirements. If it no longer meets your needs, compare standalone policies before you travel.”
Which banks have made changes to travel insurance?
NAB has removed complimentary international and domestic travel insurance from a number of cards from 15 May 2026, while other NAB cards now offer a shorter period of international travel cover.
Westpac is also scaling back its complimentary cover from 1 October, removing benefits including trip cancellation, travel delay and luggage cover from its international travel policy.
ANZ has also changed its complimentary travel insurance, including increasing the excess on eligible international travel insurance claims from $350 to $500. And CommBank is restructuring its credit card and rewards offering from 1 October.
A range of major credit cards have changed their fees and rewards as of October 1. Dominic Lorrimer
Do you really need travel insurance?
The simple answer is yes – every time you travel, as you never know when you’re going to need it.
Victoria’s RACV Travel Insurance, for example, received more than 4,000 claims in the past financial year alone and more than 9,100 claims over the past two years.
Data shows overseas medical incidents were the most common travel insurance claim received in FY26, accounting for 37 per cent of claims, followed by cancellation fees and lost deposits (27 per cent), lost and damaged luggage (21 per cent), emergency expenses (18 per cent) and travel delays (five per cent).
Travel insurance can really help you out in a jam. iStock
With these new changes, RACV Travel Insurance Manager Judith Gamble said many travellers could mistakenly assume they still have the same level of cover they’ve relied on in the past.
“Several major banks have already reduced or removed complimentary travel insurance benefits, with more changes taking effect this week. Travellers shouldn’t assume the cover they’ve relied on previously is still in place,” she said.
"Many people only discover their cover has changed after something goes wrong overseas, leaving them unexpectedly exposed to costs and disruptions."
Tips for taking out a new policy
“Don’t just look at the price. Check the medical cover, cancellation and luggage limits, excesses and exclusions, and make sure any activities you’re planning are covered,” Natalie told nine.com.au.
“If you have a pre-existing medical condition, check whether you need to disclose it and whether it’s covered.”
She said a simple way of saving money is checking the optional extras and whether you really need them.
“Compare policies based on what you actually need rather than automatically choosing the cheapest or most comprehensive option,” she said.
Natalie said many travellers risk leaving uninsured without realising. Supplied
Don’t assume your card travel insurance is automatically active
Even if your credit card still offers complimentary travel insurance, travellers may need to meet specific eligibility requirements before they are covered.
For instance, depending on the card and insurer, this can include paying for a minimum amount of the trip using the eligible card, activating the insurance before departure and meeting other conditions. Travellers should also check whether points-only bookings qualify and whether their particular card level is eligible.
“Complimentary doesn’t necessarily mean automatic,” Natalie said,
“Travellers need to know exactly what they need to do to activate their cover and make sure they’ve met those conditions.
“For example, while cover may previously have been activated automatically, some providers now require travellers to manually activate their cover. Always check the details of your credit card cover before you travel to avoid any surprises.”
