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The changes follow the Reserve Bank of Australia’s move to ban card payment surcharges, which has led to banks reducing some credit card benefits, with travel insurance among them in many cases.
Some major banks have already phased out complimentary travel insurance on certain credit cards, while others are expected to follow suit ahead of further changes taking effect on 1 October 2026.
A 2024 survey from the Insurance Council of Australia and Department of Foreign Affairs and Trade found 25% of insured travellers relied on cover through a credit card or similar arrangement rather than a standalone policy, meaning a significant chunk of SA holidaymakers could be impacted by the changes.
RAA Travel General Manager Gina Norman said many travellers may be relying on complimentary cover for an upcoming trip.
“A lot of people book a holiday assuming their credit card has them covered for things like emergency medical expenses, cancellations or lost luggage,” Ms Norman said
“With banks continuing to wind back some credit card benefits, if travellers want to know what they’re covered for they should check with their insurance provider or bank to see if anything has changed.
“Even if your card still offers some cover, it’s worth checking the caps and excesses closely, some may have been reduced and may not stretch as far as you may have expected.
“If your credit card no longer covers what you want to be covered for, you may want to consider a standalone policy for your next trip.”
Travellers looking to take out an insurance policy for their next trip can contact RAA Travel.
Royal Automobile Association of South Australia Limited (ACN 677 371 274, AR No. 228575) (RAA) travel insurance policies are issued by Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548) (Tokio Marine) through RAA as Tokio Marine’s authorised representative, and are administered by Tokio Marine Management (Australasia) Pty Ltd (ABN 69 001 488 455, AR No. 1313066) as Tokio Marine’s authorised representative. This advice is general only. Before you buy, consider the PDS/FSG and TMD available on the RAA website. Terms, conditions, limits, sub-limits and exclusions apply.
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