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."
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
How long before I travel should I purchase travel insurance?
Hi Lorelei,
Thanks for getting in contact with us at Finder!
We always recommend buying travel insurance as early as possible. This is so that you can take advantage of cancellation benefits in case something out of your control happens.
Most policies cost the same if you buy it today, versus if you but it later, so generally; you’ll get better value out of buying it earlier.
I hope you found this helpful.
Kind regards,
Jessica
How can I get travel insurance for a boat cruise for the 25/02/2020 going to the South Pacific islands. Our ages are 78 and 75 respectively. Is there any chance on getting yearly insurance or is it just for a single trip. Thank you.
Hi Delia,
Thanks for getting in contact with us at Finder!
From my research of over 15 of our travel insurance partners, InsureandGo travel insurance offers annual multi-trip policies for people up to the age of 100. Their annual multi-trip policies also offer automatic cover for on-board hospital and medical expenses as long as any pre-existing conditions are declared.
If you decide to choose a single trip policy instead, head to our cruise travel insurance page and enter your trip details into the comparison tool to compare quotes for eligible policies.
I hope this has been helpful.
Kind regards,
Jessica
Are there any insurance companies that cover Outdoor Rock Climbing without a guide. My son has already left Australia.
Hi Matilda,
Thanks for your message. Yes, there are insurers offering rock climbing travel insurance, however, they require all climbs to be with a professional/guide. Given that your son is already overseas, you may want to reach out to insurers for travellers outside Australia. 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 best of luck in finding an insurer for your son!
Best,
Nikki
Hi Maureen,
Thanks for getting in touch with Finder.
You might find our pages about seniors travel insurance and pre-existing conditions to be helpful.
Some things to note:
Best of luck and enjoy your trip!
Cheers,
Jess