Check if your debit card actually includes travel insurance and confirm how to activate it before you leave
Compare your card's free cover with standalone policies to make sure you're fully protected for your destination and activities
If you have pre-existing conditions or plan on doing high-risk activities like skiing or cruising, get a separate policy for peace of mind
How debit card travel insurance works
There are a few ways you can get travel insurance, and I reckon I've tried them all at one point or another. Buying a single policy, and annual multi-trip policy, free credit card travel insurance - they're the main ones. They've all got their pros and cons.
Debit card travel insurance is the same as credit cards that come with travel insurance. Of course with the benefit of not going into a mountain of credit card debt. That, I can say from experience, is pretty crummy.
Finder survey: What type of travel insurance have Australians purchased?
Response
International
72.93%
Domestic
25.18%
Complimentary credit card travel insurance
17.72%
None
11.33%
Annual multi-trip
8.27%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023
Why debit card travel insurance isn't perfect
The free travel insurance you get with a debit card has strings attached. They're not deal breakers, but they're worth thinking about.
You have to use your debit card to book a minimum amount of costs on your trip, normally $500. If you buy flights on your card, this is typically sorted.
You have to manually activate your insurance. You'll likely to do this on your bank's app.
The actual travel insurance policies are typically pretty basic, and don't cover you for much.
Most policies won't cover trips that are longer than 3 months.
Most card policies don't offer much customisation. For example to get cover for cruises or ski trips.
What does debit card travel insurance cover?
Free travel insurance with your debit card is probably a basic policy, covering things like delayed flights, delayed luggage, lost luggage and other travel interruptions.
Limits and sub-limits on debit card travel insurance differ from those offered by standalone policies. Smart money is to compare the free policy you get against the policies on Finder to see if it suits your trip, or if you should get a standalone policy.
Which debit cards have travel insurance?
There are a couple of debit cards available in Australia that have free travel insurance. As of January 2024, that includes:
World Debit Mastercard*
NAB Platinum Visa Debit card
*The World Debit Mastercard is offered through CommBank, but it appears to be invite only. If you're an existing CommBank customer you might be able to call and see about getting an invite, but you can't apply online.
Is debit card travel insurance enough or nah?
I've heard some absolute horror stories about travel insurance, but I've also been poor and travel obsessed, so I feel uniquely positioned to give you an honest answer on this.
Firstly, you need some travel insurance for every trip. Especially if you're travelling somewhere like the USA, where medicine is really spenno, get some cheap medical cover at least.
If you're doing dangerous stuff like snow sports, climbing, skating, riding bikes etc, you should get a standalone policy. You'll need to declare all that to be covered, and card policies don't always let you do that.
If you've got a pre-existing medical condition, same situation. Get a standalone policy so you can declare it and not be excluded from medical cover.
If none of the above apply to you, then debit card travel insurance is better than nothing. If it's a choice between the free cover on your card and nothing, get the card cover.
That being said, you can get travel insurance from like $10 a day. Which is really not that bad.
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Frequently Asked Questions
To find out if your debit card includes travel insurance, check your card's terms and conditions or contact your bank. You can also review the product disclosure statement (PDS) for details about coverage and eligibility.
Visa debit cards generally do not offer complimentary travel insurance. However, some premium Visa debit cards may include this feature, so it is important to check with your card provider.
Debit card travel insurance is a complimentary policy that comes with certain everyday bank accounts. If you meet the activation and spend requirements your trip can be covered for things like overseas medical costs trip cancellation delayed flights and lost luggage without paying a separate insurance premium. The cover is usually more basic than a standalone policy and only some premium debit cards in Australia offer it.
Each bank is a bit different but you usually need to:
- Check you are eligible based on your age destination and trip length - Pay a minimum amount of your trip costs with the eligible debit card - Activate the cover in your online banking or app or by calling your bank
Your policy only kicks in if all of those boxes are ticked so it is worth confirming activation before you leave Australia.
In most cases yes. Debit card travel insurance usually requires you to prepay a minimum amount of your trip on the card. That often means your return flights but some policies also count things like tours cruises or accommodation. Check the PDS to see what counts as an eligible spend and keep your receipts in case you need to claim.
Often it only applies to overseas trips. Some debit card policies have limited domestic benefits such as cover for trip cancellation or car hire excess but many do not. If you are travelling within Australia and relying on bank account cover read the PDS carefully or look at a cheap standalone domestic policy instead.
Common exclusions include:
- Pre existing medical conditions that have not been approved - High risk activities such as some adventure sports or off piste skiing - Cruises unless you pay extra or buy separate cruise cover - Trips that are longer than the maximum trip duration - Claims where you have not met the minimum spend or activation rules
You are also still subject to general exclusions like being under the influence of drugs or alcohol ignoring government travel warnings or travelling against medical advice.
Usually not. Complimentary debit card cover is designed as a basic safety net. Standalone policies tend to offer:
- Higher limits for medical expenses and cancellation - More generous cover for valuables and tech - Optional add ons for cruises snow sports and adventure activities - The ability to declare pre existing medical conditions
If you have an expensive trip complex itinerary or health issues you are typically better off with a paid policy.
Many card policies either exclude pre existing conditions or only cover a short list of common issues under specific rules. You often cannot complete a medical assessment or pay extra to add a condition like you can with a standalone policy. If you have any ongoing illness injury or take regular medication it is safer to get a policy where you can fully declare it.
Some debit card policies automatically cover your spouse or partner and dependent children when they travel with you on the same itinerary as long as the trip has been paid for with the eligible card. Others only cover the primary account holder. Check the definition of spouse and dependent child in the PDS and make sure everyone you are travelling with actually qualifies.
Often no or only in a limited way. Some policies treat a cruise as a higher risk trip and either exclude it completely or only cover you when you are in port. If you are going on an overseas cruise you usually need either a standalone cruise policy or an add on that specifically includes ocean cruising.
Usually yes as long as you meet the activation rules for each trip and do not exceed the maximum trip length. Many policies are set up as annual multi trip cover where you can take several journeys in a 12 month period but each one has to stay under the time limit like 90 days. Read the policy wording so you know when cover resets and when it stops.
Some debit card policies include rental car insurance excess but not all. Where it is included there will be a dollar limit and conditions such as obeying the rental agreement and local road rules. If car hire is a big part of your trip it is worth checking that limit or considering a standalone policy or separate car hire excess cover.
Often you cannot extend a card based policy once you are already overseas. If you end up staying longer than the maximum trip duration cover can automatically stop on that date even if you are still travelling. If there is any chance you might extend your trip a standalone policy that allows extensions is usually a safer option.
Some debit card policies provide limited COVID related cover such as medical expenses if you catch COVID overseas or cancellation if you test positive before you leave. Others exclude pandemics completely. COVID benefits have changed a lot over the past few years so you need to check the latest PDS and look for specific wording about coronavirus and pandemics.
You usually claim through the insurer that underwrites your banks policy not the bank branch itself. The basic steps are:
- Get copies of all documents such as medical reports police reports and receipts - Download the claim form or lodge online with the insurer named in the PDS - Submit everything within the time frame set out in the policy
Keep proof that you paid for the trip on your eligible debit card as the insurer will usually ask for that.
If you close the account or stop using the eligible card you may not meet the policy conditions for cover. Some insurers require the card to be valid and in good standing at the time of claim not just when you booked the trip. If you are planning to switch banks wait until after your trip or buy a standalone policy so you are not left without cover.
A seasoned journalist with over 10 years of experience in news, politics and finance reporting, Tim has previously held roles at the ABC, SBS and Fairfax Media. Tim’s expert insights have been quoted in The Australian, The Daily Telegraph, The Courier Mail and more. He regularly appears on TV and radio, and has been interviewed on 7 News, Sunrise, SBS News, ABC Local, 3AW and 5AA. Tim is passionate about simplifying complex insurance topics for Australian consumers. He holds a Bachelor of Arts (Politics) from Macquarie University and a Tier 1 General Insurance (General Advice) certification, which meets the requirements of ASIC Regulatory Guide 146 (RG146).
If you’re interested in a media interview with Tim, please reach out to our PR team at aupr@finder.com.
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