Up to one million Australians could be unknowingly relying on credit card travel insurance that has been reduced, removed or is about to change, as a major overhaul of card rewards and benefits begins to roll out this week.
Changes to selected CommBank cards took effect on 29 September, while a new round of Westpac and Bankwest insurance changes begins on 1 October. Further cuts announced by ANZ take effect in December 2026 and March 2027, while NAB reduced or removed travel cover on selected cards in May.
The changes reach beyond travel insurance. Depending on the card, customers may also lose or receive less value from rewards points, fee waivers, purchase protection, extended warranties, guaranteed pricing, interstate flight inconvenience cover and overseas transit accident insurance.
Compare Club says the loss of points and shopping benefits will be frustrating, but travel insurance is the change most likely to cause serious financial harm. A traveller may not discover that cancellation, luggage, delay or other benefits have disappeared until a trip has already gone wrong.
Survey shows a dangerous awareness gap
Compare Club surveyed 1,000 Australian credit cardholders whose card included complimentary travel insurance or who were unsure whether it did. The research found:
53.7% did not have a clear understanding of the announced travel insurance changes.
51.3% had not checked whether their own card’s travel insurance was affected.
30% had no idea that major banks were reducing or removing complimentary travel insurance.
Only 25.4% said they knew the specific inclusions and exclusions of their cover.
27.2% relied on their credit card travel insurance alone when travelling.
66.3% were concerned that the changes could leave them underinsured.
71.7% said the changes made them more likely to buy standalone travel insurance.
Kate Browne, Head of Research at Compare Club, said:
“People can live with earning fewer frequent flyer points. What they cannot afford is finding out at an overseas hospital or airport desk that the travel insurance they thought they had has disappeared or no longer covers the problem they are facing.
“That is what makes the travel insurance changes so much more serious than the other cuts. A lower points earn rate is disappointing. An uninsured medical emergency, cancelled trip or missing bag can cost thousands of dollars.
“More than half of the cardholders we surveyed had not checked the changes to their own cover. This is not something to leave until check-in. Cardholders need to identify their exact card, read the new policy to decide if it still provides enough cover and check the activation requirements before they leave Australia.”
What is changing
The changes differ significantly by bank and card. They may depend on when travel was purchased, when eligibility requirements were met, when the journey begins or when the claimable event occurs.
Key examples include:
CommBank, from 29 September 2026: All insurance has been removed from selected Low Rate Gold, Low Fee Gold, Standard Awards, Low Rate, Low Fee and Essentials cards. Gold and Platinum cards lose baggage and baggage-delay benefits, while selected cancellation limits are reduced. Extended warranty, purchase security, guaranteed pricing and interstate flight inconvenience benefits are also removed from selected cards.
Westpac, from 1 October 2026: New international cover for eligible cards becomes more focused on medical protection. Cancellation, travel delay and luggage benefits are removed from the complimentary policy for newly eligible trips, with a paid comprehensive upgrade available. Purchase protection, extended warranty and overseas transit accident insurance are also removed unless eligibility was met before the cut-off.
Bankwest, from 1 October 2026: A new insurer and policy apply to eligible travel. Several ancillary benefits, including accidental death, extended warranty, purchase security, price guarantee, interstate flight inconvenience and transit accident cover, are removed. Some funeral, repatriation and baggage-delay benefits are added or increased.
ANZ, from 9 December 2026 and 24 March 2027: ANZ Rewards Platinum loses international travel, domestic travel and rental vehicle excess insurance from December. ANZ Rewards Black loses those travel benefits from March 2027. Other selected Platinum and Frequent Flyer cards retain narrower cover with shorter trip limits and lower cancellation and liability limits.
NAB, from 15 May 2026: Travel insurance was removed from selected cards and the maximum international cover period was reduced from three months to 30 days on some remaining eligible products.
Rewards and other perks are also being reset
From 1 October, the Reserve Bank of Australia will reduce the maximum interchange fee on consumer credit card transactions to 0.3% and remove card surcharging.
In the lead-up, issuers have been redesigning card economics through changes to points, fees and complimentary benefits, although individual banks may give different commercial reasons for particular changes.
CommBank’s Awards program closes on 29 September and is replaced by CommBank Yello points for eligible customers. Monthly fee waivers on its Ultimate and Smart cards end from January 2027, and a 3.5% international transaction fee will apply to purchases in foreign currencies on Smart cards. Other banks have also announced changes to rewards earn rates, fees or card perks.
“For years, many customers have justified a premium annual fee because the package included points, travel insurance and other protections,” Browne said.
“If several of those benefits have been cut, people really need to assess what it offers now, not what it offered when you signed up.”
What cardholders should do now
Check the exact name and tier of the card. Benefits vary within the same bank.
Confirm the effective date and which policy applies to any trip already booked.
Check activation requirements, including any minimum travel spend, return-ticket requirement or online activation.
Review overseas medical, cancellation, luggage, delay, trip-duration, age and pre-existing-condition rules.
Check whether partners and dependants meet the policy’s eligibility conditions.
Compare the new cover with the actual cost and risks of the trip. Consider an upgrade or standalone policy if there are material gaps.
Review the card’s annual fee, points earn rate and remaining insurance or shopping benefits to decide whether it still provides value.
“Do not assume that paying for flights on the card automatically means every person and every part of the trip is covered,” Browne said.
“Download the current policy confirmation and emergency contact details before you travel. The time to find a gap is now, not after you need to make a claim.”
ENDS
Media contact
For more information or interview please contact Kate Browne, Head of Research, Compare Club
kate.browne@compareclub.com.au
Notes to editors
Compare Club surveyed 1,000 Australian adults who personally owned a credit card and said their card included complimentary travel insurance or that they were unsure. The online survey was conducted in September 2026.
The estimate of up to one million Australians is indicative rather than a direct population count. Compare Club estimates that around three million Australians hold rewards credit cards with complimentary travel insurance. In the survey, 51.3% had not checked their card and 65.9% of those who had checked found that their cover was changing or reduced. Applying the observed affected rate to unchecked cardholders produces an estimate of approximately one million people. The calculation assumes unchecked cardholders are affected at a similar rate to those who checked.
Survey findings measure respondents’ awareness and reported behaviour. They were not independently matched to individual card policies. Percentages may not total 100 due to rounding.
Product changes were checked against official bank notices available on 29 September 2026. Eligibility criteria, limits, sub-limits, exclusions and excesses apply. Cardholders should consult the current policy booklet for their exact card and trip.
About Compare Club
Compare Club is an independently owned Australian comparison service that helps people make informed financial decisions across health insurance, life insurance, energy and home loans.
