RoamMelb team, from our own experience · 7 November 2026

Is your credit card travel insurance still enough? What changed after the 2026 RBA reforms

I have always relied on the travel insurance that comes with my credit card, and I have claimed on it more than once. But from October 2026 Australian merchants can no longer charge card surcharges, banks earn less from every swipe, and card perks are being cut one after another. This post covers my own claims, what each bank changed this year, and when you should buy separate cover.

1. Medical cover is what really matters

A colleague of mine had acute appendicitis on a trip to the US and needed emergency surgery. The hospital bill was about US$30,000. Travel insurance paid all of it. People say you can negotiate with a US hospital if you're uninsured, but nobody can tell you how much off you would get.

In the US, Europe or Japan, one emergency can cost more than years of premiums.

2. My own two claims

Glasses lost in the UK: this was before Brexit. I lost my glasses in the UK and claimed on my card's travel insurance. The insurer valued them at their assessed amount, took off the excess (about A$250 at the time), and paid me roughly A$250.

A break-in in mainland China: years ago I had a break-in in China. It was a horrible experience, and I reported it to the local police. I later learnt that insurers look at whether you took reasonable care of your belongings:

• Bag left unattended beside you and someone walks off with it: usually not covered
• Bag on your body and a thief takes something out of it: usually covered

3. What you need to claim

1. Your credit card statement: proof that your flights or other travel costs were paid on that card, which is what activates card cover
2. Photos taken before the trip: proof you actually took the item
3. Proof of purchase: to show its value. Without it, some insurers accept a quote for the same item, case by case
4. A police report: for theft, report it locally and get the reference number
5. Medical receipts and reports: for medical claims

4. What the RBA changed, and why your cover shrank

• From 1 October 2026, surcharges are banned on Visa, Mastercard and eftpos payments
• The interchange cap on personal credit cards (the fee merchants pay the card issuer) dropped from 0.8% to 0.3%
• Banks lose hundreds of millions a year, so they are cutting points, cutting insurance and raising fees
• American Express isn't covered by the cap, so it has changed less this year

5. What each bank changed in 2026

As at November 2026. Always check your bank and your card's PDS:

• CommBank (from 29 September): insurance removed from lower-tier cards such as Low Rate, Low Fee and Essentials. Ultimate and other premium cards keep it, but you must spend at least $500 on prepaid travel in a single transaction on the card and activate it in the CommBank app before you leave. Claims are now handled by XCover
• NAB (from 15 May): insurance removed from six cards; remaining cards now cover overseas trips of up to 30 consecutive days
• Westpac (from 1 October): trip cancellation, delay and luggage cover removed, higher excesses, and manual activation before departure
• ANZ (from 9 December 2026 and 24 March 2027): insurance removed from Rewards Platinum and then Rewards Black; medical cover on remaining cards reportedly capped at $20,000
• Amex: mainly lounge cuts and an overseas transaction fee rising from 3% to 3.5%; insurance still requires paying your return trip with the card (or points)

I now keep only two cards, CommBank and Amex. Frankly, Australian credit cards just aren't the value they used to be.

6. Common limits on card-included cover

• You must pay for travel with the card, with a minimum spend, and most now need activating in an app
• Maximum trip length, such as 30 consecutive days with NAB
• Age limits; CommBank excludes people aged 80 or over
• Only a short list of pre-existing conditions is covered automatically; others need a health assessment and extra premium
• Per-item limits and an excess on each claim

Medical limits and maximum trip length differ by card, so read your card's PDS.

7. When to buy separate cover

• Travelling to the US, or a long multi-country trip
• Travelling with older parents, or with a pre-existing condition
• Carrying expensive cameras or laptops
• Your card's cover was removed or cut back this year
• A working holiday or long stay abroad

8. Where to buy

Departing Australia or elsewhere: consider SafetyWing. It is billed every four weeks, you can buy it after you have left home, and it suits long trips. (Affiliate link)

Departing Hong Kong: consider Blue Cross travel insurance, which must be bought and paid for before you clear immigration in Hong Kong. Contact our customer service to find out more.

9. Why Schengen countries insist on insurance

Schengen countries require insurance because they will treat a sick traveller on humanitarian grounds, and someone has to pay the bill.

• Australian and Hong Kong SAR passport holders currently visit visa-free. Since April 2026, the EU Entry/Exit System (EES) records your fingerprints and photo at the border. ETIAS, the new travel authorisation, has not launched and has no confirmed date
• Chinese passport holders applying for a Schengen visa need insurance with at least €30,000 medical cover
• The Italian Consulate in Melbourne accepts credit card insurance with supporting bank documents; Spain asks for local Australian travel insurance

More detail: Applying for a Schengen visa in Melbourne: Italy vs Spain.

10. A five-minute pre-trip checklist

1. Does your card still include travel insurance this year?
2. Did you pay for the trip on that card, and meet the minimum spend?
3. Does it need activating in an app?
4. Is your trip within the maximum length?
5. Are your travelling family members covered?
6. Have you photographed your valuables?

Hong Kong insurance enquiries

If you're interested in Hong Kong life, critical illness or annuity products, contact our customer service and we can refer you to a licensed Hong Kong insurance intermediary.

Pitfalls to avoid

1. Assuming every credit card includes insurance; many lower-tier cards lost it this year
2. Paying for flights on a different card, so the cover never activates
3. Forgetting to activate cover in the app
4. Leaving belongings unattended
5. No police report for a theft claim
6. Applying for a Schengen visa with incomplete credit card insurance documents

FAQ