Free insurance is one of the best perks available with credit cards. Unfortunately, it’s not very common with debit cards, although there are new ones out that are offering this feature.

There’s a wide range of complimentary insurances out there available to credit card holders, but what ones are available on debit cards. It’s important to remember that not all debit cards have the same types of insurances, and the eligibility and coverage may vary depending on the card issuer and who is the underwriter.

Types of free or complimentary insurances

Travel Insurance

One common type of complimentary insurance on debit cards is travel insurance.

Free insurance provided by credit cards works when the card is used to purchase an item. One of the most common types of free insurance is purchase insurance, which covers an item for up to three months after the transaction date. The coverage will usually be for events such as accidental breakage and theft. This can cover overseas medical and dental expenses, flight cancellations and additional expenses, lost luggage and personal effects among others.

It’s generally not automatically activated, but you need to spend a certain amount of your pre-paid trip costs on the card. The NAB Platinum Visa Debit Card features included travel insurance if you spent at least at least $500 on eligible purchases before you travel.

Purchase Protection Insurance

This type of complimentary insurance can cover accidental loss or damage to items you purchased with the debit card. Sometimes this can extend to theft too. The NAB Gold Visa Debit Card used to offer this, but this is now bundled with the NAB Platinum Visa Debit Card.

Extended Warranty Insurance

A third type of complimentary insurance that some debit cards feature is extended warranty insurance. This can extend the manufacturer’s warranty on items purchased using the debit card for up to a certain period of time. Along with it’s other complimentary insurance offerings, the NAB Platinum Visa Debit Card also has this.

Mobile Phone Insurance

This was first seen on credit cards, but this type of insurance can cover theft, loss, accidental damage and mechanical or electrical breakdown of mobile phones purchased using the debit card. If you’re a current ANZ Extras Package member with a ANZ Visa debit card, you’ll get mobile phone insurance from NUA for up to $1,000 per claim.

The ANZ Extras package also gets you access to Accidental Death Insurance and domestic travel insurance.

These are just some of the types of complimentary insurances that are available on debit cards here in Australia. However, it is important to note that these cover under insurances are subject to terms and conditions, exclusions, limits and excesses that may differ between card issuers and insurance providers. You should always read the policy information booklet, the PDS and T&C’s carefully and contact the relevant underwriter if you have any questions or claims. Safe travels!