What is travel insurance?
Travel insurance is designed to protect you financially if something unexpectedly happens while you’re away on your trip. For example, your luggage goes missing and you have to buy all new clothes; or if you roll your ankle while hiking and need to be taken to a hospital where the medical fees are expensive. These are just a few examples but you can be covered for loads more depending on what policy you take out.
Do I need travel insurance?
Only you can answer that but here’s some clarifying questions that can help get your pros and cons list going.
- How expensive is your trip? If it’s a $200 trip, you might not be bothered by losing this amount. If it’s a $15,000 Eurotrip, you’re more likely to care.
- Are your flights and accommodation refundable? If something happens and they’re not refundable, you’ll be out of pocket.
- How many non-refundable activities have you booked? If something happens and they’re not refundable, you’ll be out of pocket.
- Could you afford to replace your belongings if they were lost or stolen? This includes things like your luggage and your phone.
- What sort of healthcare arrangement does Australia have with the destination? If you’re going to NZ then you may not be concerned as it has reciprocal healthcare but if you’re going to the US then it may be something to consider.
- How long is your trip? If your trip is only a 3 day interstate getaway then you may feel that risk mitigation is less necessary.
- Did you buy the trip with a credit card that already has insurance built in? If you’re using a credit card then it’s worth checking if it has insurance built in already and what those limits look like.
- Will you be renting a car? If so, it may be worth looking at what the car rental excess benefit is like. Some insurers will cover this for up to $10,000.
- Are you carrying expensive goods that should be insured? This could be anything from an engagement ring to a CPAP machine or hearing aids.
- Is it a risky country? This is worth asking however if it’s so risky that a travel warning has been issued, then it’s likely your insurer won’t cover you if you’re planning on visiting somewhere that is considered hazardous.
- Are you going on a cruise? It can be worth considering travel insurance for this because shipboard care is very expensive so falling ill on a cruise can be very costly without travel insurance.
Decided now that you do in fact want travel insurance? Hit that button.
What does travel insurance cover?
Travel insurance covers emergencies or accidents that might happen to you or your belongings while you're away from home. You pay a travel insurer a fee (known as a premium) that is calculated based on the risks associated with your trip. In exchange, your insurer will pay you for unexpected costs related to your trip such as the following:
- Medical expenses if you're sick or injured overseas.
- Reimbursing you if you need to cancel your trip or cut it short.
- Covering your valuables and travel documents if they get lost, stolen or damaged.
- Flight cancellations
- Lost luggage
These are just a few examples of what travel insurance can cover. To understand what you’re covered for, read the product disclosure statement (PDS) on your chosen provider’s website.
How much does travel insurance typically cost?
The cost of travel insurance varies greatly based on where you’re going, the length of your trip and how risky your planned activities are. For a domestic policy, you could be looking at anywhere between $40-$100. For an international policy, you could be up for $100-$300. These price ranges are approximate and should be used as a guide only. Your own quote will differ based on where you’re headed, the length of your trip and what level of cover you select. It’s super easy to get quotes for yourself, just use the form at the top of the page and you’ll see what’s available on Finder within 30 seconds.
Keep in mind, the cheapest policy isn't always the best. It’s important to know what you’re covered for.
When should you buy travel insurance?
It’s wise to buy travel insurance once you’ve booked costly items or things that can’t be refunded. That could be flights, accommodation, activities, anything really. Once you’ve got a trip firmed up, the best way to protect it is by taking out a travel insurance policy.
"We recently had to cancel a trip to Europe due to a family emergency, resulting in thousands of dollars lost in tickets, accommodation bookings and more. Thankfully we had travel insurance through our credit card which made sure we were covered from when we booked. We received all money lost back in full for anything we couldn’t cancel."
I am looking for travel insurance for a 70 year old lady with a preexisting heart condition Atrial fibrillation that has been successfully treated. I am going to Canada for a week next may.
Hi Robyn, Our detailed guide to travel insurance for seniors can help you out. You’ll need to specify your existing heart condition – this might result in the quote being higher, but if you don’t mention it and the insurer finds out, any future claim is likely to be turned down. But there are lots of insurers who will offer cover. Safe travels!
I filled out a request for a travel insurance quote and have not received it
Hi Peter, you’re best to follow up with the travel insurance company you requested the quote from. Hope this helps.
I need a hard copy of my health insurance going over seas
Hi Gayle,
You should be able to print your policy. You should have a copy on your email or you can access it from online banking. If you’re having any issues, perhaps contact your health insurer for some assistance.
Hope this helps!
Greetings
I am taking a 19 day tour of Vietnam and Cambodia. During the tour I will be on a boat for one night in Halong Bay. InsureandGo advised that I need to take out a cruise premium because of the one night on a vessel. The cruise premium is double the price of its Gold premium. Is there a company that would be a better option for me?
Hi Felix,
Most insurers charge a higher premium for cruise cover, as they are pricing it based on risk. Insurers are aware that there’s a higher chance of claims related to cruising, such as illness, slips and fall injuries and cancellation fees, which can increase the premium paid.
Unfortunately you have to select cruise coverage for the entire trip, so you have a few options:
– Pay the higher price and get the peace of mind of full coverage.
– Pay for coverage without cruise cover, and take the risk of travelling knowing you have no insurance if something goes wrong on that one day.
– Enquire about taking out 2 policies: one standard policy for the entire trip without cruise cover, and another 2-day policy to cover your cruise.
Some of the things cruise travel insurance may cover includes:
Pre Paid Shore Excursions Cancellation
Missed Cruise Departure
Cabin Confinement/Loss of Enjoyment
Missed Port Cover
Formal Attire Cover
Formal Attire Delay Allowance
Unlimited medical cover and emergency assistance (on-board and while docked)
Weather delays or natural disasters.
COVID cover
Hope this helps!
I am travelling overseas later this year and have activated my credit card insurance. However the policy does not cover me if I need to cancel/postpone my trip due to COVID 19. Is there a stand alone policy I can purchase to cover cancellation / postponed trip due to COVID before I leave?
Many thanks
Hi Kaylene,
Yes you can check some options for covid cover when travelling here:
https://www.finder.com.au/travel-insurance/covid-cover