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."
Hi,
I got a quote and paid for travel insurance yesterday from Southercross Travel. I haven’t received any paperwork from them, the telephone number has a message saying not taking any calls. I have also sent an email. I was wondering if you have any issues or other complaints?
Thanks
Hi Anne,
We’re not aware of any issues with Southerncross Travel. Have you checked your spam?
You can also contact their support team via phone or email here:
https://www.scti.com.au/help-support
Hope this helps!
Hi Finder,
I’ll be holidaying in the US with my wife and 2 7yo boys for 7 weeks and then Melbourne for 1 week in mid 2023.
Can you please give me some suggestions for travel insurance companies for comprehensive insurance so I can narrow my choices when comparing them on your site.
In order of importance, the things that are of importance to us are:
Unlimited overseas medical and hospital
Amendment and cancellation of flights and accommodation
Theft of luggage and belongings
Theft of cash
Covid cover
Travel delay expenses
Emergency dental
Hospital cash allowance
Overseas emergency assist
Excess
Cost of premium
Thanks
Hi Jason,
You may utilize our comparison tool to get a quote from top providers. Please review the cover’s Product Disclosure Statement to check inclusions, certain restrictions, limitations, inclusions, and exclusions that apply.
Kind regards,
James
The Philippines require $35,000 insurance coverage to go to Manila from Australia. How do I get this?
Hi Baz,
Please visit our guide about COVID travel insurance. You’ll be able to compare a range of insurance providers who include COVID-19 medical expenses. It’s this policy feature that countries such as The Philippines are mandating.
Most offer this expense as an unlimited benefit but do check the PDS of each provider before signing up with the one that meets your needs.
Regards,
James
I would like a years travel insurance worldwide please advise
Hi Mike,
Thanks for getting in touch! It’s great to know that you are looking to get travel insurance. To get started, please utilize the online form found on top of the page above. Enter all the details needed in the form and press GET MY QUOTE. Once done, you will see a list of providers that may review your insurance inquiry. If you need further help, a quick guide on how to compare travel insurance is also included on the page.
As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
Do I need to purchase Travel insurance before I pay for flights etc?
Hi Lorelie,
Thanks for reaching out to us at Finder!
There’s nothing stopping you from purchasing travel insurance before you pay for flights but typically, people usually buy it after or at the same time of booking.
This is because your flight dates will generally confirm your travel dates. You’ll have a confirmed flight itinerary and be able to match those dates to the date range you’ll need cover for.
I hope you find this helpful.
Kind regards,
Jessica