Whether you’re heading overseas for a long-awaited holiday or exploring Australia’s great outdoors, travel insurance should be an essential part of your trip planning. It’s not the most exciting part of travel preparation, but it can save you from unexpected costs, stress, and disruptions if things don’t go according to plan.
Choosing the right travel insurance policy can be confusing, especially with so many options on the market. To make it easier, here’s what you need to consider when selecting a policy that truly fits your travel needs.
Understand Why Travel Insurance Is Important
Travel insurance provides financial protection for a range of potential mishaps, from lost luggage and cancelled flights to serious medical emergencies.
Without adequate cover, you could be left paying thousands in medical bills or facing major financial loss if your trip is cancelled unexpectedly. Even in countries with reciprocal healthcare agreements, such as parts of Europe, you may still have to pay for certain treatments or emergency evacuations.
It’s worth noting that many travel operators, cruise lines, and tour companies now require proof of travel insurance before you can join a trip. So beyond being a safety net, it’s often a practical necessity.
Identify the Type of Trip You’re Taking
The kind of cover you need largely depends on your travel style and destination.
- Domestic trips: If you’re travelling within Australia, you may not need overseas medical cover, but insurance can still help with cancellations, rental car excess, and lost luggage.
- International trips: Overseas policies should include emergency medical and hospital cover, repatriation, and cover for cancellations or delays.
- Adventure travel: Planning to ski, dive, or hike? Check if your policy covers adventure activities, many standard policies exclude “risky” sports unless you pay an additional premium.
- Cruises: Cruise travel insurance often needs to be selected specifically, as standard policies may not cover incidents at sea or medical evacuations from a ship.
Check What’s Included (and What’s Not)
Every travel insurance policy is different, so reading the Product Disclosure Statement (PDS) carefully is crucial.
Pay special attention to:
- Medical cover limits: Ensure the policy provides enough coverage for hospital treatment and evacuation costs.
- Cancellation cover: Look for policies that cover prepaid travel and accommodation in case you need to cancel for reasons like illness, injury, or natural disasters.
- Baggage and personal belongings: Make sure valuables such as cameras, laptops, and jewellery are adequately covered.
- Travel delays: If flights are delayed or cancelled, your policy should help cover accommodation and meal costs.
Also, review exclusions, such as claims arising from pre-existing medical conditions, pandemics, or reckless behaviour. If you have a pre-existing condition, you may need to disclose it upfront to ensure it’s covered.
Compare Excess and Premiums
Many travellers focus solely on the premium (the upfront cost), but the excess — the amount you’ll pay out of pocket when you make a claim — is just as important.
A cheaper policy might come with a higher excess, which means you’ll pay more if something goes wrong. Conversely, policies with a lower excess usually cost more upfront.
To get the best value, compare the total cost — not just the price tag — and choose an option that balances affordability and peace of mind.
Consider COVID-19 and Travel Disruptions
Even though global travel has largely bounced back, COVID-19 can still affect travel plans. Some insurers offer COVID-19 coverage for cancellations, medical expenses, and quarantine costs, but the level of protection varies.
Double-check if your policy includes coverage for:
- Trip cancellations due to testing positive
- Medical treatment if you contract COVID-19 overseas
- Government-mandated quarantine or border closures
If you’re travelling internationally, make sure your insurer provides 24/7 emergency assistance, preferably with an Australian-based support team.
Look for Flexibility and Customer Support
Plans change, especially in travel. Choose an insurer that allows you to amend or extend your policy easily if you decide to stay longer or change destinations.
Customer service also matters, read online reviews to see how responsive and supportive the insurer is when handling claims. An insurance company that’s easy to reach in an emergency can make all the difference.
Buy Early and Keep Documentation Handy
It’s best to purchase your travel insurance as soon as you book your trip. That way, you’ll be covered for cancellations or disruptions that might occur before you even depart.
Keep a copy of your policy number, insurer’s contact details, and emergency helpline handy, ideally both digitally and in print. If something goes wrong, you’ll be able to access help quickly and efficiently.
Final Thoughts
Travel insurance isn’t just a “nice-to-have” — it’s a vital part of responsible travel. By understanding your needs, comparing policies carefully, and checking the fine print, you can enjoy your trip knowing you’re covered against the unexpected.
Remember, the cheapest policy isn’t always the best. Choose travel insurance that offers comprehensive cover, flexibility, and peace of mind, so you can focus on what really matters, making memories on your next adventure.