Last minute travel insurance

Travel insurance can include various important benefits (even when purchased at the last minute) that may offer peace of mind if unexpected events impact your trip.

Here are some of the inclusions that an international travel insurance policy may offer:

• 24/7 emergency assistance. Travel insurers will typically have a 24/7 emergency line if you need emergency medical assistance or other help while overseas. They can help organise things like medical evacuation if needed.
• Medical cover. When travelling overseas, you may be unexpectedly injured or become ill and require medical care. In these situations, you may be covered for the cost of hospital and medical treatment that you need. It can also cover repatriation and evacuation back to Australia in a medical emergency, which can be expensive to pay out-of-pocket.
• Luggage cover. Travel insurance can cover your stolen, damaged or lost luggage including personal effects, credit cards, cash and even travel documents. However, claim limits and sub-limits apply, so if you are taking anything particularly valuable, it might be worth taking out a policy that offers higher cover for your belongings.
• Trip cancellation and travel delays. Travel insurance usually won’t cover pre-trip cancellations costs if you buy it last minute. But it can still cover your trip if it is disrupted part way through or if severe weather means a pre-paid non-refundable tour or activity can’t go ahead (provided that you’re past the cooling-off period). This can also include additional expenses, such as if you need emergency accommodation while delayed.

Travel insurance inclusions and their limits and sub-limits will vary depending on the policy and provider you choose. You can read a policy’s Product Disclosure Statement (PDS) for the full details of what is and isn’t covered. Read the Target Market Determination (TMD) for more information on whether a policy is suitable for your trip.

If you do get travel insurance at the last minute, it can come with additional exclusions and conditions compared to a policy you’ve purchased earlier.

• Pre-trip cancellation cover. This is usually the biggest reason to buy travel insurance early, as it may cover you if your trip gets unexpectedly cancelled before it can even begin. By purchasing travel insurance at the last minute, you won’t be covered for anything that happened before you bought your policy, or until the cooling off period is over.
• Cooling off period. If you get your travel insurance at the last minute or after you’ve already departed, there may be a 72-hour waiting period. This means you won’t be covered for any losses that occur within that period. The start date of your cover will be after the cooling off period has elapsed.

Other than possible conditions and eligibility criteria, your travel insurance policy may include common exclusions such as:

• Losses that occur due to you acting recklessly, illegally or while intoxicated.
• Any coverage relating to pre-existing medical conditions that your insurer didn’t agree to cover (e.g. you did not declare your pre-existing conditions when taking out your policy or it was unable to be covered).
• Travelling to a destination with a ‘do not travel’ warning in place set by the Australian Government (you can check for relevant travel alerts on the Smartraveller website).

Read the PDS to learn exactly what your policy covers, as well as the exclusions, limits and sub-limits.

If you haven’t already left for your trip, it may be possible to take out optional extras with your policy. These add-ons provide extra cover for specific activities that may not be covered automatically by your policy unless you agree to pay the additional premium.

Some common optional extras include:

• Cover for adventure activities
• Cover for winter sports
• Rental car excess cover
• Motorcycle, moped and scooter cover
• Natural disaster cover.

While it’s true adding extras to your policy will usually increase your overall travel insurance cost, it may save you overall if you end up needing to claim.

Read the PDS of your policy to understand what cover may be included automatically and what may need to be purchased as an optional extra.

The best time to buy a travel insurance policy is as soon as you make any non-refundable deposits or make a booking. You can’t make travel insurance claims retroactively, so any financial losses that happen before you take out cover will not be reimbursed.

For example, if an earthquake unexpectedly occurs at your planned travel destination before you depart and your flights are cancelled, you won’t be covered unless your policy commenced before the natural disaster occurred.

Yes, it’s actually a good idea to consider buying travel insurance after you have booked your flights or made any deposits. Travel insurance may offer financial protection for any non-refundable trip costs if your holiday gets disrupted or cancelled.

By buying travel insurance early you’ll have cancellation cover if an unforeseen event causes you to need to cancel your trip before your departure date.

The best travel insurance for your trip will depend on your personal circumstances and the type of trip you plan to take. However, a comprehensive policy generally offers customers the highest level of cover and a range of benefits.

To make sure you’re getting the most value from your policy, check that it covers all aspects of you and your trip, including:

• Any activities you plan on participating in
• Your pre-existing medical conditions and
• Your luggage.