Travel insurance is designed to protect you against unexpected events when you’re travelling domestically or internationally. Depending on the type of policy and its level of protection, you can be covered for a range of events that could bring your travel plans to a halt, like illnesses (including COVID-19) and injuries while you’re overseas, lost or stolen luggage and personal effects, cancellations and flight delays.
Before you buy travel insurance, it’s a good idea to compare policies from several travel insurance providers to find a product that meets your needs and fits your budget. You’ll want to consider what your policy covers you for and any exclusions or sub-limits that apply.
Through our free travel insurance comparison tool, you can easily compare policies from a range of Australian travel insurance companies all in the one place.
Travel insurance can protect you against financial loss that can come from unforeseen scenarios. Examples of these instances include (but aren’t limited to):
Depending on where you’re travelling to and how much cover you need, you can choose from a range of policies offering basic right through to comprehensive cover, with add-on cover options. Keep in mind that you won’t be covered for financial loss due to a declared event (such as a natural disaster) that was known or could be reasonably predicted before you took out a policy.
Many insurers have introduced cover for some COVID-19-related losses; some travel insurance policies will cover losses if you’re overseas and are diagnosed with COVID-19. Policies can also cover cancellation fees if you’re diagnosed with COVID-19 before your trip is due to commence or while you’re overseas. Some policies may even cover other costs associated with COVID-19. Please check your policy’s PDS to understand the cover available to you, and check out our COVID-19 FAQ page.
We believe so, as the right travel insurance can provide peace of mind for a range of scenarios that could befall you while travelling, including injury, illness and cancellations. Ultimately though, the decision to purchase travel insurance is completely up to you and your individual circumstances.
One example of how travel insurance can be of huge value is cover for overseas medical expenses. When travelling internationally, you won’t be covered by Australia’s public healthcare system (Medicare) unless the country you’re travelling to has a Reciprocal Health Care Agreement (RCHA) with Australia, and even then coverage is still limited. This means if you were to fall ill or become injured overseas, you could be hit with major out-of-pocket costs. With international travel insurance in place, you could have your hospital expenses covered among other medical costs.
On top of this, there’s always a chance your belongings could also be stolen or damaged during your travels. Depending on your level of cover and your travel insurance policy’s PDS, your insurer can compensate you for the loss of or damage to your belongings while you travel domestically and internationally.
Furthermore, if your flight is delayed or cancelled and you don’t have travel insurance, you could be left to cover the costs of a new flight or alternative arrangements from your own pocket. Don’t forget that a cancelled flight can have major repercussions for your travel; perhaps you’ll miss your connecting flight or a pre-paid event, like a concert or exhibition.
The cost of your travel insurance depends on a range of factors, including:
On top of this, the cost of your travel insurance policy will also greatly depend on which insurer you go through. As each trip is unique, it’s important you compare from a range of insurers to ensure you’re getting the cover you need at a suitable price.
Excess refers to the amount you’ll pay if you claim on your policy and is agreed upon when you first take out cover. When you make a claim, you’ll pay this amount or have it deducted from your settlement, and your insurer will pay the rest of your costs (e.g. medical bills, cancellations fees) up to your policy’s benefit limit.
Yes, depending on the type of policy you take out, your travel insurance can cover your overseas medical expenses. Injuries or illnesses are some of the most important reasons to get travel insurance, as the cost of medical treatment overseas can be very expensive.
If you have any known pre-existing medical conditions, you may receive cover up to a limit – provided you disclose this to your insurer before you take out your travel insurance policy. Some policies will only cover certain pre-existing conditions, while others may not provide cover at all. As such, it’s crucial check the policy’s PDS.
Domestic policies won’t include medical cover, as you’ll still be covered by Medicare and your private health insurance while travelling around Australia (one exception to this is cruising). Many travel insurance policies won’t include medical cover for cruises as standard, so it’s vital you add this option to your policy or get cruise-specific insurance before you embark.
Certain factors, including how progressed your pregnancy is or if your doctor advised you against travel, can affect your travel insurance. It’s important you check your policy’s PDS to be aware of any exclusions or limitations in cover.
Yes, your travel insurance may cover certain lost or stolen items, depending on your type of cover.
Insurers may not compensate lost belongings if you were negligent (e.g. you left your belongings unattended), you don’t report the theft to the authorities or if certain valuables – like your computer or jewellery – are placed in your check-in luggage.
In order to claim, you must be able to prove the value and your ownership of the items. You’ll also be restricted to only claiming up to your policy’s benefit limit.
Depending on your level of cover, travel insurance can financially safeguard your international and domestic trips from circumstances beyond your control. This may include instances where your luggage is lost or stolen, if you miss that big-ticket event your whole trip was based on, require medical evacuation back home or any other listed scenarios.
Need more convincing? Here are three reasons why you should consider travel insurance every time you travel.
Anyone who’s been sick on their holiday remembers the feeling of frustration as they waste their trip in bed. Imagine the additional agony if you also owed thousands of dollars in medical bills. This can be an unfortunate reality, especially if you travel to a country that doesn’t have an RHCA with Australia.
While it isn’t a feature in every travel insurance policy, you can get covered for cancellations fees and lost deposits if you need to cancel all or parts of your trip.
It’s nice to take your time, explore your new environment and relax safe in the knowledge that you won’t have to dig deep into your bank account if you get into trouble.