Travel insurance for road trips
Expert tips for choosing travel insurance for road trips
Our travel insurance expert, Adrian Taylor, has some top tips for helping you make the most of your road trip and be protected by your travel insurance at the same time.
Adrian Taylor
Chief Executive – General Insurance
Understand the type of travel insurance you need
If you’re travelling overseas, you’ll need international travel insurance however for your road trip, while a trip around the Australian grounds will need a domestic plan. What’s included in your policy will depend on which type of insurance you have and also what level of cover you choose, so it’s important to understand what is and isn’t included and whether you need to purchase any optional extras when selecting your policy.
Reduce your premium by increasing your excess
A simple way to help reduce your premium is to increase the excess amount that you pay when you need to claim. However, you still need to be able to afford your excess amount so make sure it’s still reasonable for your budget.
Compare and save today!
When it comes to searching for your travel insurance policy, Compare the Market lets you compare multiple providers and levels of cover all in one place. Whatever your budget, you should remember to always pack your travel insurance for peace of mind while on the road.
Do I need travel insurance for a road trip?
While there isn’t a specific product called ‘road trip travel insurance’, it’s still possible to get cover for when you want to hit the open road. Getting travel insurance for your road trip – whether it’s domestic or international – can give you peace of mind on your journey by providing coverage for a range of potential disruptions that could cost you money.
However, if you’re travelling domestically, be aware some insurers require you to be certain distance from your home before your travel policy covers you, while other insurers will cover you from the moment you leave home. But if you’re planning to embark on an epic adventure across the country, this shouldn’t pose too much of an issue.
The exact benefits of your policy will vary depending on your level of cover, what optional extras you take out and whether you’re heading abroad. You can find the full details of the inclusions and exclusions of a policy in the Product Disclosure Statement (PDS). For information on whether a policy suits your circumstances, check out the Target Market Determination (TMD).
Getting cover for your vehicle
Does travel insurance cover my car for a road trip?
When you take out a rental car, you’ll typically have to sign a rental agreement along with a Collision Damage Waiver, where you agree to pay an excess to the company if the car is damaged in your possession.
If you’re planning to rent a car for your road trip holiday, check if rental car excess cover is included automatically in your policy or if you need to add it to your travel insurance plan for an additional premium. Rental vehicle excess cover may cover the cost of the rental company’s excess if your vehicle is damaged or stolen during your journey.
If you’re travelling domestically, this is generally included automatically in your travel policy but it does not cover your personal car. If you’re taking your own car for a road trip, it’ll be covered under the usual terms of your car insurance policy instead.
Is my motorbike included under rental vehicle excess cover?
The rental vehicle excess benefit is specifically for four-wheeled vehicles, so motorcycles, mopeds and scooters won’t be covered. However, some insurers offer motorbike cover as a separate optional extra that you can add to your policy. If you’re travelling overseas and plan to ride a two-wheeled motor vehicle, this cover is essential as without it, you may not be covered for any medical expenses should you get into an accident.
General travel insurance inclusions and exclusions
What else is included in travel insurance for a road trip?
Travel insurance is a good idea to have for any trip, and when you’re on a road trip overseas, the cover doesn’t stop at your car. Some benefits that may be included in an international comprehensive travel insurance policy include:
- 24/7 emergency assistance. This is a 24/7 hotline that is run by your insurer or their underwriter that can help you find assistance such as the closest medical facility or help organise evacuation in an emergency.
- Medical cover. If you’re in a car accident, or even simply roll your ankle walking down the street while overseas, travel insurance can cover hospital and medical expenses. This can also include medical evacuation or repatriation back to Australia or a better medical facility should you suffer a severe illness or injury. If you’re travelling domestically, however, your policy won’t include medical cover.
- Cancellation and travel delay cover. Having cover for trip cancellation costs can be a great way to financially protect yourself from unforeseen events impacting your trip. Cancellation cover can help reimburse you for lost deposits or cancellation fees if you need to cut your trip short.
- Luggage cover. Travel insurance can also cover your personal effects and valuables in the event they’re stolen, lost or damaged while you’re travelling.
- Personal liability cover. If you accidentally cause injury to another person or damage their belongings, your travel insurance company may cover legal expenses or damage costs.
Read the PDS of your policy for the full details on exactly what’s covered under your policy and how.
What isn’t included in travel insurance for road trips?
As handy as travel insurance is, it can’t cover everything. Every policy will come with a number of exclusions that you should be aware of. For example:
- Travelling against government advice. If a country has a travel alert that recommends you do not travel there, your travel insurance policy typically won’t cover any losses since you visited the destination despite the dangers.
- Acting illegally, irresponsibly or while under the influence. For example, if you’re in a car accident while not following the road rules or were driving under the influence, both your car and any medical expenses you may need typically won’t be covered.
- Cover for your own car. While it’s fine to travel the open road with your own vehicle, your travel insurance won’t cover any damages to your car as that should be covered under your car insurance policy.
- Undeclared pre-existing medical conditions. If you have a pre-existing medical condition, you should always declare it on your policy or risk not being covered if you need to cancel your trip or receive medical care for it while abroad.
Depending on the insurer and level of cover, the exclusions, limit and sub-limits of your travel insurance cover will vary. Reading the terms and conditions in your policy’s PDS can help you understand exactly what circumstances you will and won’t be covered for.
Meet our travel insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, 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.