Is There A Best Travel Insurance? Tips For Finding A Suitable Policy

Even fit and healthy travellers can run into trouble. Unexpected events such as sudden illness or injury, missing luggage, or lost or stolen valuables can really throw a spanner in the works.

Whether you’re heading overseas on the trip of a lifetime, or you’re travelling interstate on a business venture, make sure that you’re covered at all times with a travel insurance policy that suits your needs.

Why travel insurance is important for your trip

As incredible as it would be for things to run smoothly, life doesn’t come without its unplanned twists! As you’ll know, things unfortunately don’t always go according to plan.

Travellers who experience difficulties overseas may find themselves relying on family and friends for financial assistance, or stuck with significant medical bills if they don’t have travel insurance¹.

Avoid having to fork out hefty costs just because you weren’t covered, and pay a much smaller fee for a comprehensive policy, allowing you to enjoy some much needed R&R on your travels.

An all-purpose insurance for a variety of travel-related mishaps, travel insurance can provide a level of cover for overseas medical expenses, lost or stolen belongings, trip cancellations and personal liability.

The chances are you won’t need to actually make a claim on your policy – but you’ll be extremely thankful that you have it if you do!

What does the best travel insurance look like?

There’s no such thing as ‘the best’ travel insurance, but you can certainly find an appropriate level of cover for you. The type of travel insurance that’s right for you depends on your personal circumstances, but with hundreds of different companies and policies to choose from, it can be hard to know where to start.

From where you’re going, to how long you’re going for, and even the type of activities you’ll be taking part in, there’s a lot to consider.

Here are some of the options to consider:

Domestic or International policies:

• Domestic policies: This covers travel throughout Australia, which generally covers things such as luggage loss, theft, travel disruptions, hire care excess. This doesn’t tend to cover medical bills since you already have a Medicare card, private healthcare or both.
• International policies: This is for overseas travel or travel to countries in specific regions, and is important to consider for any worldwide trip. The most important factor when it comes to international polices is usually the cover of costly medical expenses.

Basic, mid-range, or comprehensive policies

• Basic policies: This generally gets you covered for the ‘essentials’ such as medical expenses, and is the cheapest of travel insurance. Consider this type of policy if you don’t plan on taking expensive items with you or if you’re going on a cheap trip as these policies have lower variable cover for cancellation, delays and baggage².
• Mid-range policies: This can cover you for more than just medical costs, protecting you for things such as lost luggage and theft.
• Comprehensive policies: This type of policy typically covers you for much more than basic and mid-range policies. Other benefits can include factors such as loss of income and permanent disability, accidental death benefit and rental vehicle excess.

Single or multi-trip (annual) policies

• Annual policies: Annual travel insurance, aka ‘multi-trip’ travel insurance is a brilliant option for those of you that are often travelling. If you’re always on the go, these kinds of policies can save you both time and money. If you take a number of trips throughout the year, you may consider this type of insurance.
• Single policies: If you’re planning on travelling once or twice a year, whether it be interstate or overseas, you may be better off opting for a “single” trip policy. This type of policy covers you once your holiday begins and finishes when you return home.

Policies for single travellers, couples, families or seniors

• Singles policies: Whether you’re backpacking across Europe or travelling solo for a business trip, singles policies cover one person only.
• Couples policies: If you’re travelling as a couple, choosing a couple’s policy could save you money. Instead of paying for two separate single policies, one inclusive policy will cover the pair of you.
• Family policies: This type of insurance can be used to protect a whole family, usually providing cover for children under the age of 21.
• Senior policies: No matter what your age is, you’re able to get basic, mid-range and comprehensive cover just like everyone else, although you may have to pay slightly more.

Research extensively & get to know your policy

Remember that the right travel insurance is not always the cheapest. A no-frills policy may be less expensive up front, but it’s no bargain if it leaves you exposed when it’s time to claim.

Bear in mind, too, that different policies have different excesses. The higher your excess, the more you’ll pay out of pocket if you need to make a claim, however the cost of the insurance may be cheaper.

The right travel insurance should offer the highest level of financial protection against the broadest range of unfortunate events you may encounter, giving you peace of mind wherever you go.

When it comes to choosing a travel insurance policy, it pays to plan for the unexpected. Don’t let an unforeseen event spoil your trip.

Before deciding on a policy ensure you consider the Product Disclosure Statement which provides information about policy inclusions and limitations.

Compare travel insurance policies with iSelect today

No matter what kind of trip you’re going on, take out travel insurance because quite simply, you deserve to relax. With hundreds of different policies to choose from, take the time to read the small print and find the ideal policy to suit your every need.

Start comparing travel insurance policies online with iSelect today.

iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. We receive commission for each product sold.

We do not compare all travel insurance providers or policies in the market. Not all policies are available at all times, through all channels. Click here to view our range of providers.

Sources:
1.https://dfat.gov.au/about-us/our-services/consular-services/Pages/consular-state-of-play-2014-2015.aspx
2.https://smartraveller.gov.au/guide/all-travellers/insurance/pages/choice-travel-insurance-buying-guide.aspx
3.https://www.moneysmart.gov.au/insurance/travel-insurance#getting-cover