Backpacking can be an excellent way to see the world on a budget. But with all the potential risks of travelling overseas, it’s still a good idea to consider taking out travel cover no matter how streamlined your budget may be.
Whether you need an adventure policy, working holiday cover or just plain old travel insurance, this guide will help you better understand the types of travel insurance backpackers can consider.
When travelling overseas, everyone should consider purchasing cover, and a basic insurance policy can be great value especially if you’re backpackers on a budget.
Basic cover can work well for you if you’re spending a significant amount of time travelling overseas. One affordable purchase can have you covered for your entire adventure, allowing you to focus on where you’re going to stay and what attractions you’re going to visit.
At the very least, backpackers should consider purchasing basic travel insurance, but spending a little more on a more comprehensive cover could also prove beneficial.
Basic plans have just a few, essential benefits and, as a result, the premium is much lower. On the other hand, a comprehensive policy includes a wider range of benefits and higher claim limits, but comes with a more costly premium.
Some insurers may offer specific backpackers’ travel insurance policies that provide basic cover, many of which can insure long periods of travel and might even allow you to extend your policy once you’re already overseas. There are also insurers who offer basic policies that can last longer than 12 months, which allows you to explore the world without the fear of being unprotected.
Travelling overseas is an experience that most people treasure. On a backpacking trip, you can get to know destinations more intimately and experience the thrill of traversing across the globe with only the possessions in your backpack. Before you set off on this life-changing trip, there are a few considerations you should take into account when it comes to choosing to purchase travel insurance.
First, it’s important for backpackers to consider which country (or countries) they’re travelling to. In Australia, we can often take the Medicare system for granted, but in some countries, medical costs could potentially land you in a lot of debt. In these cases, having insurance coverage could give you peace of mind.
Australia has a Reciprocal Health Care Agreement with 11 countries1:
These agreements mean that you may be able access some public health services when visiting these countries. However, RHCAs have very limited coverage, so you may still need to pay for some medical treatment with your own wallet. And that’s not to mention all the other countries in the world that don’t offer reciprocal health care.
But with travel insurance, you may have help covering any medical bills you encounter during your travels.
It’s also a good idea to consider what time of year you’re travelling. For example, if you’re travelling to a country during a wet season, backpackers might face an increased risk of injury and damage in these conditions. When it comes to tourism, trips will likely fall in one (or more) of these three periods:
Backpackers are often adventurous by nature, so it could be worth considering cover for potentially dangerous activities, like:
If you plan to rent a vehicle, you will likely need an international driver’s license to be allowed on the road. Make sure you follow the road rules of the country you’re driving in and wear a seatbelt; otherwise, if you have an accident, your claim may be rejected.
If you do plan to undertake any adventurous activities, you may want to check whether your policy covers you if an accident occurs. Having travel insurance that covers emergency assistance, hospital treatment and even repatriation can be highly beneficial, especially if you’re travelling alone.
We recommend that you read the Product Disclosure Statement (PDS) of any insurance policy before you buy to make sure you have the cover you need.
Typically, trip lengths are decided before travelling. Most single trip policies will cover you from one day up to 12 months while you’re overseas. However, if you’ve decided on travelling continuously for over a year, or you find you need your policy extended while overseas, there are still travel insurance options.
Standard single trip policies often have maximum trip lengths of 12 months. However, backpackers are often long-term travellers, and you may find that some insurers will extend your policy up to 18 months.
If your trip length is unexpectedly extended, you can still be covered by travel insurance; for example, you might simply find you’re not ready to return home and want to continue travelling. If that’s the case, contact your provider at least a few days before your policy runs out and ask for an extension. But if you’re delayed by an unforeseen event that impacts your ability to travel, your travel insurance provider will usually extend your policy free of charge until you make it home.
Although different levels of cover are available to backpackers, most travel insurance policies cover a few basic essentials, including:
Please note that policies generally have limits, sub-limits, terms and conditions on how much they cover for each event. Before taking out travel insurance, be sure to read the PDS to understand the extent of your cover.
Common exclusions for backpackers travel insurance may include:
While you may value price above everything, having a travel insurance policy that covers all your needs when travelling is still important.
With our free travel insurance comparison service, you can compare a range of policies, features and more from various providers in minutes. Whether you’re after a basic policy or something more comprehensive, we can help! It pays to compare, so let us help you find your travel insurance policy.
1 Australian Government Department of Foreign Affairs and Trade: Smartraveller – Reciprocal health care agreements. Accessed May 2022.
2 Australian Government Department of Foreign Affairs and Trade: Smartraveller – Thailand. Accessed May 2022.
