Compare Travel Insurance

The cost of travel insurance can depend upon a variety of different factors. These include¹:

• Your age: Providers typically charge older travellers more as the risk of injury or illness is often higher.
• The length of your trip: The longer you’re overseas, the greater the risk is for your provider, so your premiums may increase based on this.
• The location of your trip: If you’re going to a high-risk location, or even travelling through multiple locations, this may increase the cost of your travel insurance or limit the number of policies available to you.
• How much cover you need for valuables: The higher the valuables limit required, the more the insurance premium may be.
• Whether you have certain medical conditions: This makes you more likely to make a claim, and may in turn increase your premiums.
• Planned activities: If you’re planning on riding motorbikes or going snowboarding, this may increase the cost of your policy. These kinds of “riskier” activities aren’t usually covered on a standard policy, and may need to be purchased as an additional add-on.

Source: https://smartraveller.gov.au/guide/all-travellers/insurance/pages/choice-travel-insurance-buying-guide.aspx

What you should look for when purchasing travel insurance depends upon your circumstances, and the type of trip you’re taking. According to the Australian government, it may be worthwhile to ask yourself a few questions before you start comparing options, as this may give you a better idea of what to look for.

These questions can include¹:

• Does the policy cover you for the activities you plan to do?
• Does it cover you for your current medical conditions?
• Are there any travel warnings for the location you intend to visit? Will the policy still cover you?
• What proof do you need to make a claim?
• What will the policy cost? (including the premium and the excess)

Source: https://www.moneysmart.gov.au/insurance/travel-insurance/australians-and-travel-insurance

When you’re purchasing flights, flight insurance is often an added option that pops up during your online checkout process. It’s usually a small fee in comparison to the cost of your flight. Whether or not this is suitable for you depends on where you’re travelling, how long for, and whether you need additional coverage.

Flight insurance may only cover you for costs associated with that particular flight being delayed or cancelled, whereas a travel insurance policy can provide cover for a range of situations including: Medical expenses, loss of luggage or personal items, theft, and travel disruptions.

Travel insurance typically covers you for a variety of “unforeseen circumstances” before, during and (in some cases) after your holiday. What these unforeseen circumstances includes ultimately depends on your policy, but may typically provide cover for:

• Medical expenses from personal injury or illness (excluding certain pre-existing conditions)
• Loss or theft of some luggage, personal items and/or valuables depending on the circumstances
• Cancelled, missed or delayed flights (although this depends on the cause) including accommodation issues arising as a result

Travel insurance generally doesn’t cover loss or injury from acts of terrorism, war, and some natural disasters or claims where an official travel warning has been issued. Other exclusions may apply depending on your provider and level of cover you purchase.

Like other forms of insurance, such as car or health insurance, travel insurance usually includes an excess payment. It’s the fee you’re required to pay when making a claim, in order to receive the benefits that your policy entitles you to. If your travel insurance policy is reimbursing you a monetary amount, the excess may be deducted from this figure.

In short, excess is a way for your policy provider to shift a small part of the financial risk back onto the policy holder. That said, the fee is usually small in comparison to the potential costs you’d have to pay if you didn’t have cover, and you had to foot the entire bill yourself.

Unfortunately there is no “best” policy, as finding a suitable policy for you ultimately depends on a variety of factors including your budget, needs, and the nature of your trip.

There are many providers available who offer a range of different options and coverage levels. Here’s some things that may assist you when comparing policies:

• The cost of the premium and any applicable excess charges
• What’s included and excluded from the policy, and how this compares to what you intend to do while on holiday
• How much you’re covered for on individual items
• What proof you need to make a claim
• Whether you’re covered for pre-existing medical conditions (if required)

There are a variety of travel insurance providers available that may cover you in the event that your holiday is disrupted by volcanic ash – however, there are a number of factors to consider. For example, if there were travel warnings about volcanic ash prior to your trip being arranged, you may not be covered.

Ultimately, you’ll need to speak with your provider to determine how you’re covered in the event of a volcano or another natural disaster. The Australian government also recommends that you closely read the Product Disclosure Statement of your policy to better understand your coverage.

If you need to lodge a travel insurance claim, the Australian government stresses the importance of being honest regarding the circumstances of the claim¹, as there can be serious consequences for providing false information.

Further, they recommend that you make your claim as soon as possible, as some providers may require that you inform them within 24 hours of the incident to be eligible to receive a benefit¹.

Having the following documents handy may help with any claims you make:

• Proof of travel
• Doctor’s report (for any medical related claims)
• Police report (for any accident or theft related claims)
• Valuations or proof of purchase (for any loss or theft related claims)

Source: https://www.moneysmart.gov.au/insurance/travel-insurance

If you’re planning a holiday, and you’re considering buying travel insurance, it may be worthwhile purchasing cover sooner rather than later. While you only pay for the period in which you’re travelling, you’re covered from the moment you buy your policy.

It’s also important to note that some providers don’t allow you to purchase insurance once you’ve already left Australia.

No-one plans to fall sick or get injured when on holiday, but accidents do happen, and if they happen while overseas, the medical costs can reach hundreds of thousands of dollars. The Australian Government won’t pay for your medical treatment overseas, or for your medical evacuation to Australia or a third country, so having appropriate coverage can minimise your financial risk.

Even if you’re travelling within Australia or you fall ill before your trip, depending on your level of cover, travel insurance could mitigate some financial loss from missing your holiday, or having to reschedule flights and accommodation.

You should review the Product Disclosure Statement (PDS) of a policy you select to ensure you understand all inclusions, exclusions, and limitations of the policy before purchasing.