Australians are nothing if not confident about packing a bag, booking a flight, and striding through an airport with the faint air of a seasoned world explorer. Yet, when it comes to something as mundane—but utterly crucial—as travel insurance, the nation remains a house divided.
A fresh survey by Money.com.au revealed that 39% of Australian travellers believe the travel insurance bundled with their credit card is good enough to cover them for international hiccups—whether a broken ankle in Bali or a misplaced Louis Vuitton in London.
At the other end of the runway, one in four Australians (25%) say that credit card travel insurance doesn’t cut it, while a further 15% admit, perhaps sheepishly, that they’ve no idea whether their card even includes such a perk.
“It’s value, but with caveats”
Money.com.au’s finance expert Sean Callery quickly set the record straight on the virtues and shortcomings of this oft-misunderstood cover.
“Many travellers don’t realise that the travel insurance bundled with their credit card can offer very similar inclusions and claim limits to standalone policies, as they’re often underwritten by the same major insurers. For some, it can represent good value, since the cover comes at no extra cost beyond the annual card fee,” Callery said.
That sounds almost too good to be true, because, as always, there’s fine print.
“But because the cover is standardised for all cardholders, it may not suit every trip. For example, most travel insurance on credit cards won’t cover adventure sports or allow you to adjust claim limits the way standalone policies do. It’s also worth noting that cover only kicks in if you book your trip using the credit card, so it’s important to check the eligibility requirements before relying on it,” Callery warned.
So if you’re dreaming of skiing in Switzerland or scuba diving in the Maldives, best not to assume your platinum card will be your knight in shining armour.
The generational gap
The survey also revealed a generational twist worthy of a cocktail-party debate. Usually accused of killing everything from chain restaurants to diamond sales, millennials were the most trusting regarding credit card travel insurance. Nearly half (45%) of Millennials believe their card cover is enough. Gen X followed close behind at 42%, with Baby Boomers not too far off at 34%.
Gen Z, however, proved more sceptical than a customs officer eyeing a suspiciously heavy duty-free bag. A mere 28% of them believed in their credit card’s cover. Perhaps their penchant for adventure-heavy travel, think bungee jumping in New Zealand or backpacking across South America, makes them wary of a “one-size-fits-all” policy.
Interestingly, regarding sheer lack of awareness, 22% of Gen Z and 21% of Baby Boomers admitted they didn’t know if their card even included travel insurance. Millennials, in contrast, were the least likely to be in the dark, with only 8% unsure.
Is it enough for your trip?
So, is credit card travel insurance enough? The honest answer is: sometimes.
Suppose your travel plans are relatively straightforward: a week in Singapore, a family holiday in Fiji, or a business jaunt to Hong Kong. In that case, the bundled coverage may be entirely sufficient. Most policies will include the basics: medical emergencies, lost baggage, trip cancellations, and delays.
But, as any seasoned traveller knows, the devil is in the detail. The coverage is standardised and rarely customisable because it’s a group policy. If you’re heading off on a grand multi-month expedition, have pre-existing medical conditions, or crave the adrenaline of adventure sports, a standalone policy is almost certainly the wiser choice.
And no matter which route you take, one golden rule remains unchanged: read the Product Disclosure Statement (PDS). Yes, it’s about as thrilling as waiting for your luggage at baggage claim, but it could save you from financial ruin when things go pear-shaped.
The takeaway
Australians’ trust—or lack thereof—in credit card travel insurance paints a fascinating picture of balancing convenience against caution. With nearly four in ten happy to rely on the freebie cover that comes with swiping plastic, and just as many opting for belt-and-braces standalone policies, the choice ultimately comes down to the traveller’s appetite for risk.
As Sean Callery aptly said, “For some, it can represent good value … but it may not suit every trip.”
A timely reminder that, while we may travel for the memories, it pays to insure against the mishaps. After all, the only thing worse than a cancelled flight is footing the bill yourself.
By My Thanh Pham
