Travel insurance for the USA
A guide to travel insurance for the USA
Last updated March 19, 2024
Travel insurance tips for USA
Catriona Rowntree’s top travel insurance tips for the USA.
Catriona Rowntree
Travel
Video Transcript
Hello. I’m Catriona Rowntree, host of Australia’s longest-running travel and lifestyle show, Getaway.
And today, I wanted to talk to you about the country that’s on everyone’s bucket list Japan and the difference having
travel insurance can make on your trip. From the beautiful cherry blossoms to the exciting city of Tokyo, endless ski
fields and ancient traditions. There is a reason Japan is on everyone’s bucket list, but even though Japan is a safe travel destination,
travel insurance is still important to have. Medical expenses happen, but in Japan, they’re not cheap, which is why having travel insurance
is highly recommended. When it comes time to choose your policy, always remember to declare any pre-existing medical conditions
on your application. So your insurer can decide whether to cover you for them or not. Now, you may also require a higher level of coverage,
depending on the type of trip you’re taking, like rental vehicle access if you’re renting a car or ski cover, if you’re hitting the slopes
and on the point of excess as well, that is the out of pocket cost if you need to make a claim. You can reduce your travel insurance premium
if you consider a higher excess, just make sure it’s manageable. OK, now, once you pay your deposits for your trip, it is a really good idea to purchase travel insurance
with immediate cancellation cover. This means cancellation fees are covered if your holiday is called off due to unforeseen circumstances.
And finally, if you plan on going more than once in a year, you might find better value in purchasing an annual policy that covers you for multiple trips.
Just make sure you check the product disclosure statement, the PDS for the maximum travel days covered per trip. Navigating what travel insurance is right
for you doesn’t have to be difficult, and you have come to the right place. Compare the Market can help you compare travel insurance policies online in minutes.
So you can travel with confidence.
Why take out travel insurance for the USA?
If you’re heading to the USA, it’s important you get international travel insurance so you can travel with confidence and peace of mind knowing you’re covered. Further reasons to take out a suitable travel insurance company include:
- You can be financially protected in the event of an incident, and your policy may include cover for illness, injury, theft and travel delays.
- You won’t be able to access Medicare or your private health insurance overseas, which is why medical cover is crucial for your trip.
- If an unforeseen natural disaster occurs, you may be covered for cancellations, unexpected accommodation expenses or the rescheduling of your trip.
Choosing travel insurance for the USA
If you’re looking to compare travel insurance quotes and choose a policy, there are a few things you should think about when you get a quote:
- Choose a policy with high or unlimited medical cover that includes repatriation, as medical costs in the USA are much higher than in Australia.
- Consider any optional extras you may need depending on your travel plans including adventure activities, cruising or winter sports.
- Read the fine print of your PDS to understand exactly what you’re covered for before purchasing so you don’t get caught out if you need to claim.
Expert tips for choosing the right travel insurance for the USA for you
Our travel insurance expert, Adrian Taylor, has insider knowledge on choosing the right travel insurance for the USA.
Adrian Taylor
Executive General Manager – General Insurance
Declare your pre-existing medical conditions
Make sure you declare any pre-existing medical conditions so your travel insurance company can assess your application and whether your conditions can be covered. Medical treatment in the USA is incredibly expensive, so understanding any limits of your cover is vital.
Check if you’re covered for COVID-19
Many insurers will include cover for COVID-19 (coronavirus) as part of their top tier policies. However, always check the PDS to understand a policy’s inclusions, exclusions and limits regarding COVID-19 cover so you don’t get caught out if you fall ill.
Frequent travellers should consider annual cover
If you plan to visit the USA or other international destinations multiple times in a single year, it could be worth taking out annual multi-trip cover instead of a single trip policy. Travellers who venture overseas more than three or four times a year may experience greater value from annual cover.
All about travel insurance for the USA
Do I need travel insurance for the USA?
Travel insurance is a great idea for every trip you take overseas, no matter the destination. However, in 2021-22 the USA saw the third highest number of Aussies needing consular assistance and the fifth highest for illness and hospitalisation cases.1
Smartraveller recommends a comprehensive travel insurance policy for the USA due to the high cost of medical treatment, even for minor issues.2 However, even a basic level of cover can provide benefits for medical costs, as well as personal liability cover in the event you injure another person or damage their belongings.
What should my travel insurance policy for the USA include?
As mentioned above, medical care is expensive in the USA, so you should consider including medical cover in your travel insurance policy, even if you don’t think you’ll get sick or injured.
If you’re planning to get active during your visit to the USA, consider adding cover for extreme and winter sports as an optional extra, as insurers may not automatically cover these activities.
To know what your policy covers, including its limits, sub-limits, inclusions and exclusions, read the PDS before purchasing a policy. Here are a few other ways travel insurance plans can help you during your visit to the USA.
Dealing with theft and lost belongings
Petty theft and pickpocketing are ongoing issues in the USA. In 2021-22, there were 253 cases of lost or stolen passports in the USA, the highest in any country for Australian residents.1
It’s important keep a close eye on your valuables; however, luggage cover may protect you from the cost of replacing stolen, lost or damaged belongings, including your electronics, passport, credit cards, cash, travel documents and other personal effects.
Medical treatment and medical expenses
While the USA has a reputable healthcare system, receiving treatment in a medical emergency can be incredibly expensive. Australia and the USA don’t have a Reciprocal Health Care Agreement, nor are you covered by Medicare or private health insurance overseas. But travel insurance may help to cover the cost of medical bills and overseas emergency assistance.
Travel insurance may also cover you if you need medical evacuation or repatriation from the USA, which could cost hundreds of thousands of dollars out-of-pocket.
Driving in the USA with an Australian licence
If you plan on driving across America, you’ll need a valid Australian or international driver’s licence.
If you’ve hired a rental vehicle, you need to be careful to observe the road rules of whatever state you’re in. A travel policy may help you pay the rental car insurance excess in the event of an accident, provided rental vehicle excess cover is included in your policy.
Trip cancellations and delays
Flights that don’t arrive on time are a common reason for travel delays and cancellations. Appropriate travel insurance could mean the difference between getting reimbursed for travel delays and swallowing the cost of cancellation fees, lost deposits and missing important activities.
It can pay to get travel insurance as soon as you make any deposits or pre-book accommodation so you’ll be covered for events which could disrupt your travel plans.
Natural disasters
Natural disasters have been known to occur in the USA, including earthquakes, hurricanes, tornadoes, floods and wildfires. Check Smartraveller regularly before departure in case of a disaster, and while overseas keep an eye on local media and travel alerts. When you buy travel insurance, consider choosing a policy that includes natural disaster cover.
What does travel insurance for the USA exclude?
Like any type of insurance, there are some things that travel insurance won’t cover. Specific exclusions in your travel insurance cover may vary between insurers, which is why it’s important to always read a policy’s PDS before purchasing.
Here’s a list of some common exclusions you might find in your travel insurance policy:
- Pre-existing medical conditions. Unless you declare your pre-existing conditions and your insurer agrees to cover them, any medical treatment or hospital expenses related to those conditions will not be covered.
- Unattended luggage. If your luggage was stolen while it was left unattended in public, your insurer will likely reject your claim for loss.
- Illegal and reckless activities. If you knowingly acted illegally or dangerously, your insurer may reject any claims resulting from your actions.
- If your claim was caused by an incident where you were under the influence of drugs or alcohol, it may be rejected by your insurer.
- Extreme and winter sports. Your insurer may not cover you for claims resulting from participation in extreme sports, winter sports like skiing, snowboarding and other adventurous activities like surfing. However, your insurer may offer cover for these activities as an optional extra.
You can find a longer list of what may and may not be covered in our travel insurance FAQs.
Meet our travel insurance expert, Adrian Taylor
As the Executive General Manager of General Insurance, Adrian Taylor believes in educating customers about the importance of travel insurance so that anyone can kick back and make the most of their time away from home. While no one wants a disrupted holiday, a suitable travel insurance policy can provide a financial safety net for yourself, your belongings and your trip in case things go wrong.
Want to know more about travel insurance?
1 Australian Government: Department of Foreign Affairs and Trade. Consular State of Play, 2021-2022. Accessed June 2023.
2 Smartraveller. United States of America. Last updated May 2023. Accessed April 2023.