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?
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.
Need to know more? You can contact us if you have any questions. If you’re on your travels and need emergency assistance, we’re here to support you 24/7.
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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
With nib you can purchase travel insurance even after you’ve left your home in Australia, however there is a 72-hour waiting period for all policies purchased while travelling. Travel insurance through your credit card may need to be activated prior to travel and are often subject to eligibility requirements.
Cover for some COVID-19 related events is available on most of our plans but the types of benefits and benefit limits vary. Credit card travel insurance may offer coverage for COVID-19, but coverage varies and each individual policy must be checked.
You must book your travel using the credit card offering the insurance to activate the cover. Always read the terms and conditions, exclusions and limitations.
Need more information?
At nib, we're here to answer any questions and clarify any doubts you might have. If you need more information or are unsure about what to do, our nib International 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. We recommend reading the terms, conditions, limits and exclusions in the Product Disclosure Statement (PDS) to understand your policy thoroughly.
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 PDS.