Credit Card Travel Insurance Changes Leave Aussies at Risk

A major overhaul of credit card travel insurance has left many Australians at risk of traveling uninsured. Reforms introduced by the Reserve Bank of Australia on October 1 have reduced interchange fees that banks can earn from card transactions, prompting several banks to change their complimentary travel insurance benefits.

NAB is removing international and domestic travel insurance from some cards as of May 15, 2026, while Westpac has scaled back its complimentary cover by removing trip cancellation, travel delay, and luggage cover from its international policy. ANZ has also changed its coverage, increasing the excess on eligible international claims from $350 to $500.

Travel insurance experts warn that many Australians may not realize their card no longer offers comprehensive coverage until it's too late. 'Don't assume your card travel insurance is automatically active,' said Natalie Smith of Comparetravelinsurance.com.au. 'Check the medical, cancellation, luggage and delay cover, as well as any eligibility requirements.'

Victoria's RACV Travel Insurance received over 4,000 claims in the past financial year alone, with overseas medical incidents accounting for 37% of all claims.