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Is credit card travel insurance worth it?

Does the travel insurance that comes with some premium credit cards stack up against standalone policies?

man using credit card travel insurance lead
Last updated: 30 May 2018

Credit card companies love to spruik the "free" bonuses that come with their cards, especially those cards named after precious metals and jewels: gold, platinum, diamond. Some of these premium cards come with complimentary travel insurance, provided you meet certain criteria.

While this certainly takes the hassle out of organising insurance for every trip you take, is it worth it? How does this "free" insurance stack up against standalone travel insurance?

Credit card travel insurance pros

  • Good coverage The coverage level is not only comparable to standalone policies, but often better. Try our free credit card travel insurance comparison to find out how your credit card scores.
  • Go anywhere Unlike standalone travel insurance, credit card insurance isn't location-specific. This means you can go from Singapore to Nairobi to London to Teotihuacan without taking out separate policies, and without paying higher premiums for longer, worldwide trips. Bear in mind though that some regions (such as countries under United Nations embargo) may be excluded, and sometimes with US underwriters travel to Cuba is excluded.
  • Collect rewards points Cards that come with travel insurance usually also come with other bells and whistles like rewards points to make the annual fees worthwhile. If these are a drawcard for you already, then travel insurance is an added bonus. (To help decide if points cards are worth it, read our article on Credit cards with frequent flyer points.)
  • Spend rewards points If you've been squirrelling away your rewards points, some cards will still cover you if you use them to buy your tickets. Check the eligibility section of the PDS.

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