Credit Card Travel Insurance vs Comprehensive Travel Insurance: What’s Best for You?

Michelle Feilberg
Jul 19
4 min read

When planning a trip, travel insurance often feels like a ‘tick-the-box’ moment. But it’s one of the most important safety nets you’ll pack. Whether it’s covering a medical emergency overseas, trip cancellations, or lost luggage, the right policy can mean the difference between a minor hiccup and a financial disaster.

One of the most common dilemmas travellers face is deciding whether to rely on credit card travel insurance or invest in a comprehensive travel insurance policy from a specialist provider like Covermore, SureSave, or NIB.

So, what’s the difference? And which one is right for you?

Let’s break it down.

Quick Snapshot

Option	Credit Card Travel Insurance	Comprehensive Travel Insurance (Covermore, SureSave, NIB)
Cost	Usually included with premium credit cards	Paid separately; premium varies by age, trip, and options
Coverage	Basic cover for medical emergencies, cancellations, luggage	Extensive cover including unlimited medical, cancellation, additional expenses
Excess	Often higher excess when claiming	Can choose your excess level when purchasing
Age Limits	May have restrictions for travellers over 65 or 70	Often covers older travellers, though premiums increase with age
Activation	Usually requires pre-trip activation & paying for travel with the card	Coverage begins from date of purchase (or trip start date if later)

Understanding Credit Card Travel Insurance

Many premium credit cards include travel insurance as a free perk—but “free” doesn’t always mean “comprehensive.”

What’s Typically Covered?

Overseas medical emergencies
Trip cancellations or delays
Lost or delayed luggage

However, credit card travel insurance often comes with strict activation requirements, like:

Paying for part or all of your trip with the card
Notifying the insurer or activating the cover online before departure

Potential Drawbacks

Higher excesses (you might pay $500–$1,000 before receiving a payout)
Limited cover for pre-existing conditions
Age limits, typically excluding travellers over 65–70
Less flexibility if you need to make changes or extend your trip

If you’re after basic protection and are comfortable with the conditions, this can be a useful safety net—especially for younger, healthy travellers on short holidays.

What About Comprehensive Travel Insurance?

When you buy a dedicated policy from a travel insurer like Covermore, SureSave, or NIB, you’re getting a broader safety net, plus more control over your cover.

Here’s how they compare:

Covermore Travel Insurance

Coverage:
- Unlimited overseas medical expenses
- Trip cancellations
- Additional expenses (like accommodation if you’re delayed)
- Optional extras (like snow sports, cruises, and pre-existing medical cover)

Pricing:
- Competitive, varies by destination, age, and trip length

Excess:
- Customisable; lower excess available for a higher premium
Age Limits:
- Can cover older travellers, but premiums increase with age and medical history

SureSave Travel Insurance

Coverage:
- 24/7 emergency assistance
- Trip cancellation and amendment costs
- Overseas medical and evacuation
- Luggage and personal effects

Pricing:
- Offers several plans, from budget to premium

Excess:
- Flexible options—higher premiums for lower excesses

Age Limits:
- Covers older travellers, though terms may apply for medical conditions

NIB Travel Insurance

Coverage:
- Medical evacuation and repatriation
- Cancellations and interruptions
- Luggage protection
- Optional cover for adventurous activities

Pricing:
- Flexible, with various policy levels and add-ons

Excess:
- Can choose an excess amount to adjust premium cost

Age Limits:
- Broad age coverage, though medical screening may be required

Comparison Summary

Feature	Credit Card Insurance	Comprehensive Insurance (Covermore, SureSave, NIB)
Scope of Cover	Basic medical, cancellation, luggage	Extensive cover including optional add-ons
Flexibility	Limited to set terms and conditions	Can customise to your needs (e.g., cruise, ski, etc.)
Activation Requirements	Must pay for trip using the card, sometimes manual activation required	Coverage starts once you buy the policy
Age Limits	Often excludes older travellers	More inclusive of older travellers, though costlier
Excess Levels	Usually fixed and higher	Choose from a range of excess options

Which Is Right for You?

Choosing between credit card and comprehensive travel insurance depends on your travel style, age, health, and destination.

Frequent flyer with a premium credit card? Your card’s policy might be enough for short, simple trips if you’re within the age limits and happy with the inclusions.
Planning a big international trip, cruise, or ski holiday? Opt for comprehensive insurance for peace of mind. It’s especially important if you’re over 65, have pre-existing conditions, or want extra protections (like cover for travel delays, adventure activities, or emergency evacuations).

FAQs

What’s the difference between credit card and comprehensive travel insurance?

Credit card insurance is a complimentary benefit that covers basic needs but often has strict conditions and limits. Comprehensive insurance provides broader cover and lets you tailor the policy to your trip.

Can older travellers get cover with Covermore, SureSave, or NIB?

Yes, but the premium will likely be higher. Some policies require medical screening for travellers over a certain age.

How do I activate my credit card travel insurance?

Generally, you need to:

Pay for part or all of your trip using the card
Register or activate the cover before you depart (online or by phone)

Which insurance is better for frequent travellers?

If you travel often, comprehensive annual multi-trip policies can offer better value and more consistent cover compared to relying on credit card insurance—especially if you need more than basic protection.

Final Thoughts

Travel insurance isn’t one-size-fits-all. Before you fly, ask yourself:

What’s my risk tolerance?
Am I comfortable with the credit card policy’s limitations?
Do I need cover for specific activities, cruises, or pre-existing conditions?
How important is medical evacuation cover or 24/7 global assistance?

The best policy is the one that matches your needs—not just your budget.