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Credit card insurance vs travel insurance: What you need to know
Understanding the difference between credit card travel insurance and a standalone travel insurance policy can help you make the right choice and ensure you're properly covered before you head off on your next adventure.
15% off travel insurance for nib Health members*
What are the main differences between credit card insurance and travel insurance?
Credit card travel insurance: Is often included as a perk when you pay for some or all your trip with your credit card. While it’s convenient and can offer some basic coverage - like emergency medical expenses or trip cancellation - it often comes with lower limits, strict eligibility criteria and more exclusions.
Standalone travel insurance: Travel insurance, like policies available through nib, offer a larger range of travel insurance plans and levels of coverage, based on where you're going and the activities you're doing. From higher overseas emergency medical benefits to cover for a wide range of adventure activities, travel insurance plans generally offer more options for your unique trip.
Can I use both my credit card insurance and nib travel insurance when travelling?
Yes, but it’s important to understand what may happen in the event of a claim.
If both policies cover the same event - like medical evacuation – one insurer may cover the primary portion of the claim, while the second may only pay for costs not already reimbursed, like the excess. This ensures you can’t claim for the same expense twice.
We would generally expect you to recoup any losses from all other avenues first. For example, if your flights are delayed, you should contact your airline to ask for compensation or credit card issuer first.
Does having a credit card travel insurance void my nib travel insurance?
No. However, if you need to make a claim you need to tell us if you are covered by your credit card’s travel insurance, and you’ll need to seek compensation through them first.
Remember, always check the terms and conditions of your policy and if you’re not sure about something, you can contact us.
What are the key things to look out for when choosing between travel insurance and credit card travel insurance?
1. Coverage scope
Travel insurance offers more coverage options, with higher limits that can be tailored to your needs.
Credit card insurance typically offers basic coverage, with lower limits and more exclusions.
2. Eligibility and cover activation
Travel insurance can be purchased at any time, regardless of how you pay for your trip, and can cover multiple travellers.
Credit card insurance is generally activated by paying for your trip on the card. Cover may only be available to the primary cardholder.
3. Pre-existing medical conditions
Travel insurance may offer cover for pre-existing medical conditions. Even if your condition isn’t covered, there may be more options for partial coverage or exclusions tailored to your specific health needs. nib offer a medical screening service that will help determine if you have a pre-existing medical condition.
Credit card insurance generally excludes pre-existing medical conditions or only offers limited coverage, which could leave you exposed.
4. Activities and adventures
Travel insurance offers flexible options for a number of adventure activities and sports. There are often add-ons that may cover you for higher-risk activities such as snow sports, and you can customise your coverage based on the activity you’re planning.
Credit card insurance often excludes activities and adventures, especially higher-risk activities like bungee jumping, scuba diving, skiing and trekking above certain altitudes.
5. Claims and support
Travel insurance has dedicated support teams that specialise in travel insurance claims, and has 24/7 emergency assistance teams ready to help.
Credit card insurance claims can be complex as they involve the credit card and travel insurance companies. Customer service might not be as dedicated and support may be limited.
While credit card insurance may seem like a great deal and can offer some basic coverage, standalone policies can provide protection and clarity. It's important to weigh your options to ensure you're fully prepared, no matter where your travels take you.
Travel insurance vs credit card insurance: Which may be right for you?
Only you can choose which type is right for you.
Consider the cover each insurance offers, and the type of trip you are taking. If your trip is a domestic or a short trip, credit card insurance may be sufficient.
On the other hand, if your trip involves adventure travel, consider travel insurance for sports and/or high-risk activities.
Likewise, for international travel, especially in countries with expensive healthcare, consider travel insurance.
Frequently asked questions about travel insurance
Need more information?
If you need more information or are unsure about what to do, the nib Emergency Assistance team is just a call or click away.
As always, our priority at nib is to help you travel confidently, knowing exactly where you stand with your coverage.
The above features and benefits are a summary of cover only. Cover is subject to the full terms, conditions, limitations and exclusions outlined in the Product Disclosure Statement.
nib Travel Insurance Distribution Pty Limited, ABN 40 129 262 175, AR 336467 is an authorised representative of nib Travel Services (Australia) Pty Ltd (nib), ABN 81 115 932 173, AFSL 308461 and act as nib's agent and not as your agent. This is general advice only. Before you buy, you should consider your needs, the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and Target Market Determination (TMD) available from us. This insurance is underwritten by Pacific International Insurance Pty Ltd, ABN 83 169 311 193.
We are a signatory to the General Insurance Code of Practice developed by the Insurance Council of Australia and enforced by the Code Governance Committee, an independent body whose purpose is to drive better Code compliance and help the insurance industry improve its service to consumers. The Code is designed to promote good relations and insurance practice between insurers, authorised representatives and consumers. The Code sets out what we must do when dealing with you. You can obtain a copy of the Code from codeofpractice.com.au.
*The discount applies to the total nib travel insurance premium and is for customers that currently hold an Australian health insurance product, or an Overseas Student Health Cover product with nib. The discount is not available to customers who hold an Overseas Visitors Health Cover product. Discounts do not apply to the rate of GST and stamp duty or any changes you make to the policy. nib has the discretion to withdraw or amend this discount offer at any time. This discount cannot be used in conjunction with any other promotional offer or discount.