Australian Banks Scale Back Credit Card Travel Insurance, Leaving Travellers Urged to Check Their Cover
Several major Australian banks have begun reducing or removing the complimentary travel insurance traditionally offered with many credit cards, prompting warnings for travellers to review their policies before heading overseas or embarking on domestic trips. The changes, affecting both new and existing cardholders, mean that relying on a credit card for travel insurance may no longer provide the protection Australians have come to expect.
Complimentary travel insurance has long been considered a convenient perk, with many travellers activating their cover simply by booking flights or meeting minimum spend requirements. But banks across the country are now adjusting their policies, with some removing travel insurance entirely and others significantly reducing benefits. These changes are being rolled out progressively through 2026 and 2027, and may impact customers regardless of when they originally obtained their card.
The extent of the changes varies widely between institutions. Some banks have shortened the maximum coverage period for international trips, while others have reduced or removed benefits such as medical cover, cancellation protection, luggage insurance and rental vehicle excess. In certain cases, domestic travel insurance has also been affected. As a result, travellers who previously relied on their credit card for comprehensive protection may find themselves underinsured.
Importantly, these changes apply not only to newly issued cards but also to existing accounts. Even if a traveller has used their credit card’s insurance before, they should not assume the same level of cover still applies. Policies may have been updated since their last trip, and benefits that were once included may now be limited or removed.
Travellers are being urged to check whether their card still provides any complimentary travel insurance at all — and if it does, whether the remaining cover is sufficient for their needs. Some cards may still include basic protection, but with reduced claim limits or stricter eligibility requirements. Others may now require cardholders to activate their insurance manually before departure, meet minimum spend thresholds, or comply with new conditions relating to trip duration or destination.
To avoid unexpected gaps in coverage, cardholders should carefully read the Product Disclosure Statement (PDS) associated with their credit card. Key details to check include eligibility criteria, activation steps, maximum trip lengths, covered activities, exclusions, excess amounts and whether family members travelling with them are included. Travellers should also pay close attention to effective dates listed in the policy, as coverage may differ depending on when the trip was booked or when the insurance was activated.
With many Australians preparing for holidays or already travelling, consumer advocates stress the importance of contacting credit card providers directly if there is any uncertainty about coverage. As complimentary travel insurance becomes less predictable across the banking sector, travellers may increasingly need to consider purchasing standalone travel insurance to ensure they remain fully protected.