Aussies at risk: 2 in 3 forgo travel insurance to save money
A worrying number of holidaymakers are forgoing travel insurance when they jet off, according to new research by Finder.
A Finder survey of 1,049 respondents revealed 2 in 3 Australians (64%) have travelled without cover, leaving them unprotected if something goes wrong.
Almost 1 in 3 (31%) – equivalent to almost 6.5 million people – admit they skimped on insurance because it was too expensive.
The research found 11% didn't take out cover because they didn't think anything bad would happen to them, while 10% didn't get travel insurance because they didn't know what it covers.
A further 7% said it was too complicated to organise, and 5% forgot to take out a policy.
Angus Kidman, travel insurance expert at Finder, said millions of Australians are putting themselves at risk by not purchasing travel insurance before a holiday.
"Cutting corners on travel insurance is really risky; without proper coverage, an emergency abroad can seriously ruin your finances.
"Some people naively believe nothing bad will ever happen to them – that kind of toxic positivity can easily come back to bite you."
Kidman said a medical emergency during a holiday can turn into a nightmare if you aren't covered.
"The cost of an unexpected injury or illness overseas can easily stretch into tens of thousands of dollars in medical bills.
"No one thinks anything bad will happen to them, but it's better to be safe than sorry."
Kidman said if you can't afford travel insurance, you shouldn't be travelling.
"Travel insurance is vital, particularly if you can't afford to pay out of pocket for an unexpected event, such as a medical emergency, lost valuables, or flight cancellation.
"If you are worried about paying too much, compare multiple travel insurance policies so that you can purchase adequate cover at a rate you can afford," Kidman said.
Finder's data shows 1 in 8 (13%) don't pay for additional cover as they have travel insurance with a credit card.
| Have you not taken out travel insurance for any of the following reasons? | |
|---|---|
| It's too expensive | 31% |
| I already have travel insurance on my credit card | 13% |
| I don't think anything bad will happen to me | 11% |
| I don't know what it covers | 10% |
| It's too complicated to organise | 7% |
| I forgot to take out a policy | 5% |
| I always take out travel insurance when travelling | 36% |
| Source: Finder survey of 1,049 respondents, July 2024 |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,049 respondents from July 2024.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
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