RAC Travel Insurance

Our verdict: RAC Travel Insurance has high limits and broad cover, particularly for COVID-19, financial default, and legal liability.

4.4 ★★★★★ (34 reviews) Write a review
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Nicola Middlemiss

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RAC

Pros

  • RAC offers up to $10,000 protection against financial default, which is one of the rarer benefits within travel insurance.
  • A broad range of risks related to COVID-19 are covered, with the RAC among the most comprehensive in the market.

Cons

  • Pregnancy is not covered after the 25th week and multiple pregnancies require a medical evaluation at any stage.
  • Although RAC's COVID-19 cover is broad, it's capped at $3,500 which could leave some travellers out of pocket.
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Summary of RAC Travel Insurance International Comprehensive policy

Overseas Medical and Hospital ExpensesUnlimited
Cancellation and Amendment FeesUnlimited
Luggage and Personal Effects$15,000
Maximum Age Limit110

Table updated October 2023

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Congratulations, RAC!

RAC received the following awards in the 2024 Customer Satisfaction Awards:

  • Travel Insurance - Most Loved Brand (Winner)
  • Travel Insurance - Most Trusted Brand (Winner)
  • Travel Insurance - Legendary Service Brand (Winner)
  • Travel Insurance - Value Brand (Highly Commended)
Full list of 2024 winners

How does RAC Travel Insurance cover COVID-19?

RAC offers a broad range of cover for risks related to COVID-19. Here's what you can expect:

  • Overseas medical, hospital, and emergency expenses if you contract COVID-19.
  • Cancellation fees and lost deposits if you have to cancel or cut short your trip due to a COVID-19 related event outside of your control.
  • Cancellation fees and lost deposits if you or a travelling companion are diagnosed with COVID-19 and you have to cancel or rearrange your trip
  • Relevant costs if a close relative or business partner is hospitalised or dies due to COVID-19 and you have to cancel, reschedule or return home early.
  • Relevant costs if you are permanently employed as a healthcare worker and your pre-approved leave is cancelled due to COVID-19.
  • Relevant costs if a pre-paid tour is cancelled due to your tour guide contracting COVID-19
  • Relevant costs if you're not permitted to board scheduled public transport due to you being suspected of having COVID-19
  • Relevant costs if your accommodation is closed due to an outbreak of COVID-19 or necessary cleaning due to COVID-19
  • Childcare costs if you're unable to take care of your dependant children due to contracting COVID-19 on your trip.
  • Pet care costs if you're unable to return home on your scheduled date due to contracting COVID-19 on your trip.
  • Transport of your remains or funeral costs if you die as a result of COVID-19 during your trip.

There are some scenarios that are not covered by RAC including costs if you were diagnosed with COVID-19 before heading on your trip but went anyway.

What do Australians think of RAC travel insurance?

  • 4.48/5 overall for Customer Satisfaction — higher than the average of 4.26, and this was the highest score in the category
  • 4.76/5 for Trust — higher than the average of 4.57, and this was the highest score in the category
  • 4.49/5 for Customer Service — higher than the average of 4.2, and this was the highest score in the category

Based on RAC travel insurance scores in Finder's 2024 Customer Satisfaction Awards.

What policies does RAC offer?

RAC offers five insurance policies to travellers. Comprehensive, Essentials, Medical Only, Annual Multi-Trip, and Domestic.

Travel plane luggage passport

Comprehensive

Passport

Essentials

Hospital

Medical Only

Hiking

Annual Multi-Trip

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Domestic

The insurer of this product is Tokio Marine & Nichido. It comes with a cooling-off period of 21 days and choice of $250 standard excess for international plans.

Here's a breakdown of RAC Travel Insurance features

Standard features
Optional add-ons
Exclusions

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Standard features

These are some of the main insured events that RAC will cover. Some of these benefits may only apply on the Comprehensive International policy.

  • Overseas medical treatment
  • Lost, damaged or stolen property
  • Trip cancellation or amendment
  • Additional accommodation and transport
  • Rental vehicle excess
  • Theft of money
  • Luggage and travel delay
  • Emergency dental costs
  • Kidnap and hijack
  • Personal liability
  • Permanent disability
  • Accidental death

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Optional add-ons

RAC also offers some add-ons that provide cover for a wider range of risks.

  • Ski and Winter Sports Cover.Extend your policy to include snow spots and get protection for specific risks such as piste closure, lost lift pass, or avalanche.
  • Cruise Cover Extends your insurance policy to cover cruises.

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Exclusions

Unfortunately, travel insurance doesn't cover everything. Generally, RAC will not pay your claim if it relates to:

  • Unlawful, wreckless or unreasonably unsafe behaviour by you
  • Behaviour while you were drunk or under the influence of drugs
  • Expenses related to a pre-existing medical condition not listed on your policy
  • An act of war, invasion or revolution
  • An act of war, invasion or revolution
  • You being unfit to travel or travelling against medical advice
  • Childbirth or pregnancy complications after the 25th week of gestation
  • A multiple pregnancy without a medical assesment
  • An elective medical or dental treatment, cosmetic procedure or body modification (including tattoos or piercing)
  • Self-inflicted injury or illness, suicide or attempted suicide

Make sure you review the RAC PDS for a detailed breakdown of what won't be covered, found under its list of general exclusions.

How to make an RAC Travel Insurance claim

The quickest way to lodge your claim is online. You'll need to register with the email address you used to purchase your policy. Once registered, set up your password and complete your claim details by answering all sections.

Once submitted, your claim will be assessed within 10 working days.

Alternatively, you can call RAC on 1300 209 352 or email RAC at travelinsurance@rac.com.au.

Here's the bottom line about RAC Travel Insurance

RAC offers strong protection across the board, at a reasonable price point.

In regards to COVID-19, a wide range of scenarios are covered but claims are capped at $3,500 which could leave some travellers out of pocket.

Lots of adventure activities, and even scooter and motorbike riding, are covered as standard, which is good news for many adrenaline-fueled but budget-conscious travellers. However, there's no option to add a specific adventure pack so be sure to check exactly which activities are covered and any requirements attached.

If you're still not sure about RAC Travel Insurance, you can compare other travel insurance companies here.

Frequently asked questions

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Senior writer

Nicola Middlemiss is a contributing writer at Finder, with a special interest in personal finance and insurance. Formerly a business and finance journalist, Nicola has written thousands of articles helping Australians better understand insurance and grow their personal wealth. She has contributed to a wide range of publications, including Domain, the Educator, Financy, Fundraising and Philanthropy, Insurance Business, MoneyMag, Mortgage Professional, Yahoo Finance, Your Investment Property, and Wealth Professional. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds. See full bio

Nicola's expertise
Nicola has written 241 Finder guides across topics including:
  • Personal finance
  • Personal insurance, including car, health, home, life, pet and travel insurance
  • Commercial business insurance
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2 Responses

    Default Gravatar
    CarmelMarch 19, 2016

    Amendment or Cancellation cost: If a close family member got very sick and I decided not to go on trip, would the policy cover this

    thank you

      AvatarFinder
      RichardMarch 21, 2016Finder

      Hi Carmel,

      Thanks for your question.

      Your cancellation will depend on your policy exclusions stated with RAC. If you were aware of any reason, before your period of insurance commenced, that may cause your trip to be cancelled, you may not be covered.

      The exact definition of a relative for each travel insurance policy will vary from insurers. Moreover, there are many policies that will cover you for amendment and cancellation costs due to family emergencies.

      Please make sure to read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statements before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details.

      I hope this was helpful,
      Richard

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