Young Australians are relying far less on credit card travel insurance, and the timing suggests the banks’ retreat from complimentary cover is part of the reason.
Just 9% of insured travellers aged 18 to 29 relied on automatic credit card cover for their last overseas trip, down from 20% in 2024, according to a survey of 1,750 Australians by direct travel insurer 1Cover. Over the same period, the share of young travellers going uninsured fell from 30% to 25%. That compares with 17% of Australian travellers overall.
The shift follows a run of cuts to card benefits by the major banks. IB AU reported this month that NAB removed travel insurance from six cards in May, and other banks have scaled back cover or moved to activation requirements. ANZ’s changes take effect from December 9 and March 24, 2027, depending on the card.
1Cover has a commercial interest in the issue. IB AU has previously reported that comparison site Comparetravelinsurance.com.au shares directors and shareholders with 1Cover. Even so, the gap it describes is real for families. “Complimentary travel insurance provided through a credit card may come with important restrictions. Some policies only cover dependent children when they travel with the cardholder, so parents and carers should check the policy terms carefully before their child heads overseas,” 1Cover chief operating officer Natalie Ball said.
The warning comes as school leavers plan their first independent trips abroad. A separate 1Cover survey this month found 25% of 18 to 24-year-olds said they would not buy travel insurance for their next trip. Government research points the same way. A 2024–25 DFAT and Insurance Council of Australia survey found 23% of young travellers went overseas uninsured, and 58% did not know their cover may not apply in Level 3 or Level 4 destinations.
The claims show what is at stake. 1Cover said it received more than 11,000 claims in 2025, including one for $399,328 for pneumonia on a cruise ship in Japan, and one for $327,846 for multiple injuries in a ski accident in Canada.
For brokers whose personal-lines clients have school leavers travelling this summer, the card is the first thing to check. Does the policy cover a dependant travelling alone? Is the card affected by the bank changes, and does cover need activating? Is the destination one where government advice would void it?
