Travel insurance comparison service Comparetravelinsurance.com.au is warning Australians to review their credit card travel insurance before their next overseas trip, after several major banks moved to reduce or remove complimentary cover. The changes come as the Reserve Bank of Australia (RBA) prepares to implement broader card-payment reforms on October 1. The changes affect holders of some credit cards issued by major banks, including NAB, Westpac, ANZ, and Commonwealth Bank. Separately, the RBA is reducing the interchange cap on domestic-issued consumer credit card transactions acquired in Australia from 0.8% to 0.3% from October 1, 2026. The central bank estimates the reforms will reduce issuer interchange revenue by about $660 million a year, assuming no other changes in behaviour, with most of the reduction affecting consumer credit card issuers.
Natalie Smith, marketing director at Comparetravelinsurance.com.au, said travellers should not assume their existing cover remains unchanged. “For many travellers, complimentary travel insurance is a highly appealing credit card benefit, but that cover can change over time. If you’re relying on your credit card insurance for an upcoming trip, don’t assume you're still eligible for the same benefits. Check your current policy carefully, including what is covered, the limits and excesses that apply, and whether you need to meet any conditions to activate your cover,” Smith said.
The benefit reductions vary by institution, according to each bank’s published documentation. NAB removed complimentary international and domestic travel insurance, as well as rental vehicle excess insurance, from several cards effective May 15, 2026. According to NAB’s published policy changes, six affected cards lost those benefits, while some remaining eligible cards also had changes to the duration of international travel cover. Westpac is scaling back international travel insurance on affected cards from October 1, removing benefits including trip cancellation, travel delay, and luggage cover and limiting international medical cover to specified benefits. Westpac has said the insurance changes are not directly related to the RBA’s new interchange fee cap, according to Canstar.
ANZ is also making changes to complimentary insurance across its credit card range, with changes taking effect from December 9, 2026, and March 24, 2027, depending on the card. Commonwealth Bank’s restructure is more extensive: according to CommBank’s published card updates, from September 29, 2026, all insurance will be removed from certain cards, including Low Rate Gold, Low Fee Gold, Standard Awards, Low Rate, Low Fee, and CommBank Essentials. The Ultimate credit card will move to insurance underwritten by Allied World Assurance Company and arranged through Cover Genius, replacing the existing Zurich Australian Insurance Limited group policy. The CommBank Awards program will also close on September 29.
Beyond the benefit reductions themselves, Comparetravelinsurance.com.au is equally focused on activation risk – the conditions cardholders must meet for cover to apply even where it technically remains available. Smith said the shift from automatic to manual activation is among the most significant changes for travellers to understand. “Complimentary doesn’t necessarily mean automatic. Travellers need to know exactly what they need to do to activate their cover and make sure they’ve met those conditions. For example, while cover may previously have been activated automatically, some providers now require travellers to manually activate their cover. Always check the details of your credit card cover before you travel to avoid any surprises,” Smith said. Minimum prepaid travel-spend requirements remain in place across several major issuers, although the threshold varies by card. Current documentation specifies $500 for eligible CBA, NAB, Westpac, and HSBC cards, compared with $250 for relevant ANZ cards. Eligibility requirements also vary by card and insurer, including how travel booked using rewards points or travel credits is treated.
The scale of consumer reliance on credit card and other embedded travel insurance makes changes to complimentary cover potentially significant. The 2024 Insurance Council of Australia (ICA) and Department of Foreign Affairs and Trade (DFAT) Travel Insurance Survey, which surveyed 1,007 Australian travellers, found that 25% of travellers who had travel insurance for their last overseas trip said one reason was that they already had cover through arrangements such as a credit card or employer. HelloSafe’s 2026 Australian Travel Insurance Barometer separately estimates that credit card insurance accounted for approximately 28% of the Australian travel insurance market by policy type in 2025. HelloSafe describes this figure as an industry estimate based on insurer and aggregator data and other industry sources, rather than an official market statistic.
Australians lodged a record 119,949 complaints with the Australian Financial Complaints Authority (AFCA) in 2025-26 — the highest on record and the third consecutive year above 100,000 – with delay in claim handling, service quality, and claim rejection the three most common issues. As coverage terms narrow and cardholders encounter gaps they did not anticipate, travel insurance disputes are a foreseeable area of growth.
Comparetravelinsurance.com.au recommends cardholders verify whether their specific card remains eligible for complimentary travel insurance, whether the scope or level of cover has changed, what the maximum overseas medical cover is, what excess applies on claims, and whether cancellation, luggage, and travel delay benefits remain included. Cardholders should also confirm activation requirements and minimum spend conditions, and whether pre-existing medical conditions are covered and require declaration. For insurance brokers managing travel programmes for corporate or retail clients, the risk is direct: clients who have relied on credit card cover as a default – without verifying current terms or documenting activation steps – may now hold an unintended coverage gap.
Smith said standalone policies warrant consideration where card cover no longer meets traveller needs. “A credit card policy can provide valuable cover, but travellers need to understand what they are actually getting. If credit card cover no longer meets your needs, a standalone travel insurance policy may provide more comprehensive benefits that you can often compare before you buy,” Smith said. Comparetravelinsurance.com.au shares directors and shareholders with direct travel insurance brands 1Cover, Zoom Travel Insurance, and Ski-insurance.
