Victorians risk travelling uninsured as credit card cover changes take effect

RACV Travel forecasts thousands of Victorians travelling this year could unknowingly travel uninsured when changes to complimentary credit card insurance take effect this week.

The warning comes as several major Australian banks scale back or remove complimentary travel insurance benefits attached to some credit cards, potentially leaving travellers with less cover, or no cover at all.

RACV Travel Insurance received more than 4,000 claims in the past financial year alone and more than 9,100 claims over the past two years, highlighting just how common unexpected travel disruptions can be.

RACV Travel Insurance Manager Judith Gamble said many travellers could mistakenly assume they still have the same level of cover they've relied on in the past.

"Several major banks have already reduced or removed complimentary travel insurance benefits, with more changes taking effect this week. Travellers shouldn't assume the cover they've relied on previously is still in place," Ms Gamble said.

"Many people only discover their cover has changed after something goes wrong overseas, leaving them unexpectedly exposed to costs and disruptions."

RACV Travel Insurance claims data* shows overseas medical incidents were the most common travel insurance claim received in FY26, accounting for 37 per cent of claims, followed by cancellation fees and lost deposits (27 per cent), lost and damaged luggage (21 per cent), emergency expenses (18 per cent) and travel delays (five per cent).

"Even where complimentary insurance is still offered, cover can vary significantly between providers and card types," she said.

"What was included a year ago may not be included today, and some policies require travellers to activate cover or meet spending thresholds before they're eligible.

"The last thing anyone wants is to be standing at an airport, in a hospital or dealing with a cancelled holiday and discovering they don't have the protection they thought they did."

With the summer travel season approaching, RACV is encouraging Victorians to check their insurance arrangements well before departure.

RACV's travel insurance tips:

• Check whether your credit card still includes complimentary travel insurance and whether your cover has changed.
• Confirm whether you need to activate cover or meet minimum spending requirements before travelling.
• Review cover limits, exclusions and excesses, particularly for medical expenses, cancellations and luggage.
• Consider whether additional travel insurance may be required for your destination, activities or personal circumstances.
• Carry emergency assistance and insurer contact details while overseas.

"Travel should be exciting, not stressful," Ms Gamble said.

"Taking a few minutes to review your cover before you leave could save thousands of dollars and a great deal of worry if something unexpected happens."

For a full list of major bank travel insurance changes, visit RACV's guide.

*Note: Percentages exceed 100 per cent as a single claim may be recorded under multiple categories.

More information

Royal Automobile Club of Victoria (RACV) Limited (ABN 44 004 060 833, AR No. 1243563) (RACV) is an authorised representative of the RACV Travel Insurance insurer Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548) (Tokio Marine). Tokio Marine Management (Australasia) Pty Ltd (ABN 69 001 488 455, AR No. 1313066) is an authorised representative of Tokio Marine, and administers RACV Travel Insurance as the managing agent on behalf of Tokio Marine. Terms, conditions (including eligibility criteria), exclusions, limits and sub-limits apply. Any advice is general advice only, and does not take into account your specific objectives, financial situation or needs. Before you purchase, please consider the Combined Product Disclosure Statement (PDS) / Financial Services Guide (FSG) and Target Market Determinations (TMDs) available on RACV’s website, or on request from RACV.