Coverage will depend on the credit card travel insurance policy, and it could include cover for:

• Overseas medical expenses.
• Lost, damaged or stolen property.
• Cancelled or delayed flights.
• Accidental death.
• Legal liability (e.g. if you cause an accident during your trip and are required to pay compensation to other people).

What you are covered for, who’s covered, and what limits apply, will depend on your policy, so it’s important to read your policy documents. Exclusions can also apply and policies may only cover trips of a certain length. There may also be an excess amount payable if you need to make a claim.

Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the insurance policy to understand what’s included and whether it’s suitable for your situation.

Importantly, some complimentary credit card travel insurance cover may only be available to customers who have more premium credit cards. Other credit cards may still include complimentary travel insurance, but for a more basic level of cover and/or for a lower amount.

Depending on the credit card you choose, you may get all or some of the following types of insurance included as a perk.

Overseas travel insurance

This may cover the policyholder for a range of risks related to travelling overseas, such as costs incurred due to cancellations or delays, medical expenses, lost baggage and replacement of travel documents. The cost of an overseas funeral or cremation, or body repatriation, may also be covered if a person covered by the policy passes away while travelling abroad.

The policyholder may have the option of adding additional cover to their policy to cover specific risks (e.g. skiing or cruise cover) but there could be a cost for this.

Domestic travel insurance or interstate flight inconvenience

This may cover the policyholder for some risks associated with interstate travel within Australia. Covered risks may include costs incurred due to delays and cancellations, and loss or damage to personal belongings or business items. Funeral expenses as a result of accidental death may also be covered, depending on the policy.

Transit accident insurance

This kind of policy may cover accidental injury or death that occurs while the policyholder is boarding or travelling as a paying passenger on a plane, bus, train, ferry or eligible form of transport.

Car rental excess cover

Some policies may cover the policyholder for the cost of any excess they may need to pay to a rental car hire company in the event of an accident involving the rented vehicle.                                                                    This cover is sometimes included as a benefit under a broader travel insurance policy or can be added separately.

The best credit card with complimentary travel insurance will vary depending on your own circumstances and needs, such as spending habits and travel frequency. Other factors to consider include:

• How you will pay off your credit card balance: keep in mind there’s generally spending requirements you must meet in order to qualify for complimentary travel insurance.
• Annual fees: credit cards with travel insurance usually come with higher annual fees.
• Other card features: it’s important to see what other features the credit card may offer, such as complimentary airport lounge access, ability to earn frequent flyer points, or rewards points. You may also want to consider the card type and network it uses.
• What’s covered: the complimentary travel insurance may not suit your specific travel needs, so it’s important to read through what is and isn’t covered before opening a credit card account for its complimentary travel insurance.

Here are some of the potential pros and cons of complimentary credit card travel insurance:

Pros to complimentary credit card travel insurance

• It may be cheaper than buying standalone travel insurance, particularly if you are a frequent traveller, as you would not need to purchase a new policy each time you travel.
• The policy may also cover your spouse or family.
• You can continue to receive complimentary cover as you get older (subject to the policy’s upper age limit), compared to standalone policies that tend to get more expensive as you age.

Cons to complimentary credit card travel insurance

• The card may charge higher annual fees and interest than a card with no complimentary insurance.
• The cover will vary depending on the card and it may be lower than what you can get with a standalone policy.
• There may be exclusions, such as trip duration limits and age limits.
• You need to activate the card and may need to spend a certain amount or pay for the trip using your credit card.

What’s on offer with credit card travel insurance and whether it’s a good option will depend on the travel insurance policy and your circumstances. Make sure you check the list of events that are and aren’t covered and what the policy limits are. If you don’t think you’ll have enough coverage or you won’t be covered for the events you want, you may want to consider buying a standalone travel insurance policy.

When looking at travel insurance, the Australian Government’s Smartraveller website recommends thinking about:

• where you are travelling
• how long you are travelling for
• what you plan to do there
• your age and health
• how much your valuables are worth
• shop around and choose what’s right for you.