In this day and age, you just don’t know what’s around the corner when you’re far from home – whether it’s a mega virus, or a stolen wallet.

We’ll give you three definitive reasons why you need to get travel insurance every time you travel.

1. To protect yourself (and loved ones) from huge expenses

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.

The International Federation of Health Plans1 detailed the cost of staying in hospital for one day in various countries.

  1. United States of America: $5,763.58
  2. New Zealand: $3,344.30
  3. Australia: $1,756.06
  4. Argentina: $942.47
  5. Spain: $645.77

N.B. Prices converted from USD to AUD as of 30/06/2016

Additionally, news.com.au reports that ‘daily hospital stays in South-East Asia can exceed $800’.

DFAT reports that consulates around the world dealt with 15,824 incidents between 2014/15 for Australians running into difficulties during their trip; things like arrests, hospitalisations, repatriation (i.e. being returned home), thefts, assaults, etc.2

Perhaps most alarmingly, more than 1,000 Aussies die overseas every year, and it can cost $20,000+ to bring them home.3

All this illustrates the point that getting sick or injured overseas can be a costly exercise. Sure, Australia has a reciprocal healthcare agreement with 11 countries, giving tourists access to subsidised healthcare if you’re travelling to one of these locations. However, some charges may still apply, you can’t go to a private hospital, and it may not cover costs like emergency evacuations, trips home, etc.

It just goes to show that beyond healthcare expenses, travel insurance helps pay for the unexpected.

2. Compensation when you’re delayed

While it isn’t a feature in every travel insurance policy (i.e. you may have to pay extra for it), you can get covered for cancellations and delays that result in you missing out on key parts of your trip. For one insurer, cancellations comprised 25% of all their insurance claims, so it’s more common than you think.

3. Peace of mind

It’s nice to take your trip, 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.

And if you’re worried about not getting paid your due, don’t worry. The Insurance Council of Australia says that almost 98% of all insurance claims were approved.

Still stumped? Learn more about travel cover.

Sources

  1. http://static1.squarespace.com/static/518a3cfee4b0a77d03a62c98/t/534fc9ebe4b05a88e5fbab70/1397737963288/2013+iFHP+FINAL+4+14+14.pdf
  2. http://dfat.gov.au/about-us/our-services/consular-services/Documents/consular-state-of-play-2014-2015.pdf
  3. http://smartraveller.gov.au/guide/all-travellers/everyone/pages/advice-for-all-travellers.aspx