How much cover does credit card insurance actually offer?

20 February 2020

There are two kinds of people, those who rely on their credit cards for insurance, and those who believe that only dedicated travel insurance companies offer the real deal. If you find yourself in the credit card camp, read on for an indepth look at what is  – and is not – covered by your bank.

Almost every credit card offers some level of travel insurance. The trouble is, those levels vary as greatly as the interest rates they come with. Even at the top level, where complimentary travel insurance is marketed as a premium perk, the coverage can fall short of the mark.

In this guide we’ll help you to navigate the differences that can exist between the cover offered on various credit cards,  with the cover offered by a standard provider, in our case, Travel with Kit. This article is designed to hopefully help you make an informed decision.

‘My credit card will cover it’

If you are about to go on holiday overseas and are relying on the automatic travel cover that comes with paying by credit card, you might need to take a closer look at what the policy covers. The list below looks at the major requirements travellers have of their cover, with a comparison between the cover provided by top end credit cards and Travel with Kit. The list is not comprehensive, and some insurers may not apply all the exclusions – you need to study your policy document for all the details.

Let’s compare our travel insurance with credit card cover

The table below describes some of the key differences between most credit card travel insurance policies and the cover offered by Travel With Kit.

Travel Insurance Feature

Most Credit Card Travel Insurance*

Travel with Kit *

Steps to activate
There is often a minimum spend requirement related to a portion of the travel costs being bought with the credit card.
Purchase a policy online – no minimum spend required elsewhere.
Who can be covered
Often it is only the cardholder, spouse and immediate family.
Unlimited adults and dependents.
Length of trip
Various – but the maximum is usually 6 months.
Up to 365 days for a single trip.
Type of trip
Most credit card travel insurance offers the travel insurance as an annual multi trip with a max trip length of 30 days.
We don’t offer annual multi trip cover.
Age limits
Some credit card companies have age limits, such as maximum traveller age of 65.
Travel with Kit covers up to 99 years for all plan levels and up to 74 for cruise and skiing packs.
Excess will vary by insurer.
Travel with Kit has a $100 excess per person per event.
Pre Existing Medical Conditions
Most credit card insurance will have limited cover for pre-existing conditions. They may offer the option to screen and pay an additional premium for cover.
Travel with Kit covers 50 pre-existing medical conditions and offers additional cover for specific non-included conditions.
Cover for Cruise
Some will cover cruises while others will require an additional premium.
Cruise cover is offered as an optional extra, available up to 74 years.
Cover for Ski and Snow sports
Some will cover snow sports while others will require an additional premium.
Snow sport cover is offered as an optional extra, available up to 74 years


*We’ve compared Travel with Kit’s range of plans and optional extras with the credit card travel insurance provided by in general, by premium facilities such as gold, platinum and black credit cards.

Do your homework

Each credit card travel insurance policy works slightly differently so it’s important that you read the Policy Disclosure Statement before making a decision. We recommend that you read the product disclosure statement (PDS) that relates to your credit card travel insurance.

If your credit card insurance doesn’t automatically cover aspects of your trip be sure to obtain quotes from alternative insurers to compare the costs of cover.

Want to dig a little deeper still? Finder has put together a comprehensive article on credit card travel insurance which reviews Australia’s major credit cards. Read it here.

Understand your cover

Conditions and exclusions apply to every cover level and optional pack. View our Combined Product Disclosure Statement and Financial Services Guide for full details. Sub-limits apply. Not sure? Our friendly team are here to help. Get in touch