18 June 2019

Ensuring you are covered by your travel insurance for the activities you plan to undertake whilst you are travelling could be a lifesaver if a problem occurs, especially overseas where medical expenses are known to be high. To help ease your mind, Virgil can help you understand the travel insurance included within your credit card.

So why do you need travel insurance?

Mostly because it could save you a significant amount of money if you happen to run into trouble during your travel, where you would be responsible for footing the bill. The Department of Foreign Affairs and Trade website SmartTraveller offers a whole page of examples of times when travel insurance has helped Australians in their time of need.

If you have a credit card that includes complimentary travel insurance, you should be aware of the activation criteria and travel insurance benefit limits available to you. For example, the most common credit card activation criteria requires you to be a permanent resident within Australia and to ensure you spend between $A500-800 on your prepaid travel costs (i.e. your travel costs that you pay for before leaving Australia) and you charge these costs to your eligible credit card. And here are some other criteria’s you should be aware of:

What coverage is included?

Inclusions vary, however typically cards include baggage insurance, smartphone insurance, travel delay insurance, public liability, roadside assistance, car rental excess and more. However, there are benefit limits and some card policies may not cover adventure sports or risky activities such as off-piste skiing or riding a moped.


Complimentary travel insurance with your credit card costs nothing – upfront. This is all provided without additional cost when you purchase airline tickets or travel using the card which offers the insurance. If you take a few trips a year, you may get more value out of your card’s annual fee than not. The only downside is the excess – credit card travel insurance excesses (or deductibles) can top out at $500, while standalone policies cost about a fifth of that ($100 at most.)

Medical Cover

Complimentary Credit Card travel insurance coverage includes medical; however it is generally a low benefit. You should be aware of the benefit limit and consider if this is adequate. If not, then you can obtain a quote for unlimited cover here.  

Domestic vs. international travel

Complimentary credit card travel insurance covers your trip worldwide, no matter where you tend to go as opposed to a Standalone policy which will depend on where you travel to – US travel insurance is much higher than Europe for example. Domestic travel is usually not covered by your credit card policy.

Are my spouse and children covered?

If you are planning to travel with your whole family and you make the purchase on your credit card, it is likely you will get insurance for your spouse and dependent children. Cover may include medical expenses for illness or injury, lost or stolen luggage, legal liability and more.

Cancellation is one of the main reasons people buy travel insurance. Most credit cards include this and benefits coverage of cancelled trips due to illness, injury, death and weather to name a few. Benefit limits can differ from card to card, but generally range between $1500-10,000

So are you covered for Travel within your Credit Card Insurance Coverage?

In most cases, complimentary credit card travel insurance is valuable, however you need to ensure you are aware of the inclusions and benefit limits. If you think you are not adequately covered, then let Virgil help you explore your options to purchase unlimited cover.