Do Aussies Really Trust Credit Card Travel Insurance? New Survey Reveals Surprising Insights

Credit Card Travel Insurance Under the Spotlight

A new survey by Money.com.au has revealed that 39% of Australian travellers trust the travel insurance bundled with their credit card to cover them in the event of overseas mishaps or emergencies. While this suggests a significant portion of travellers rely on their card’s benefits, the research also highlights uncertainty and scepticism among many Australians.

One quarter of respondents (25%) said they believe credit card travel insurance does not provide adequate coverage, while another 15% admitted they don’t know whether their credit card even includes such a feature.

What Experts Say About Credit Card Travel Insurance

Money.com.au’s Finance Expert, Sean Callery, explains that credit card travel insurance can be good value but comes with important conditions. Many policies are underwritten by the same major insurers as standalone policies, meaning inclusions and claim limits can be very similar. For some, it represents excellent value since the cover is effectively included in the annual card fee.

However, this type of insurance is standardised for all cardholders, which means it may not suit every trip. For example, adventure sports are rarely covered, and claim limits cannot be adjusted. In addition, cover usually only applies if the trip is booked using the credit card, making it essential to check eligibility requirements before travelling.

Generational Differences in Trust

The survey also revealed generational differences in attitudes towards credit card travel insurance. Millennials were the most likely to trust the cover (45%), followed closely by 42% of Gen X and 34% of Baby Boomers. Gen Z were the least trusting, with just 28% expressing confidence in their card’s travel insurance.

Interestingly, a significant number of travellers remain unaware of their coverage. More than one in five Baby Boomers (21%) and Gen Z (22%) said they didn’t know whether their credit card offered travel insurance, compared with just 8% of Millennials.

Is Credit Card Travel Insurance Enough for Your Trip?

Credit card travel insurance can provide sufficient cover for common travel issues, such as medical emergencies, trip cancellations, lost baggage, and travel delays. However, because it is a “group policy,” travellers cannot customise the cover to suit individual needs.

For longer or more expensive trips, pre-existing medical conditions, or activities such as skiing, scuba diving, or other adventure sports, a standalone policy may be a safer choice. Travellers are encouraged to carefully read the Product Disclosure Statement (PDS) before relying solely on credit card insurance.

What This Means for Australian Travellers

With 21% of respondents reporting they own a credit card without any travel insurance, the survey results highlight the importance of checking card benefits before planning an overseas trip. While credit card travel insurance can save money, travellers must understand its limitations and ensure they are adequately protected for their specific journey.

Planning Ahead for Peace of Mind

Whether relying on credit card travel insurance or purchasing a standalone policy, preparation is key. Taking the time to understand what is covered, and ensuring it aligns with the type of trip planned, can make all the difference in avoiding unexpected costs while travelling abroad.

For more details on travel cover options, visit www.money.com.au.

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