Travelling is an exciting and adventurous experience. These days, whether you’re travelling locally or internationally, ensuring that you’re protected in case of unexpected circumstances is essential. And so along with planning accommodation and a fun itinerary, travel insurance is an integral part of holiday planning for Australians. But it all takes time, and who wants to read through the fine print of insurance plans when you could pore over maps and post envy-inducing pictures on Instagram? I’m pretty sure we all know that when leaving Australia, travel insurance is just as important as a passport, and it’s worth the effort, but let’s explore the need for insurance a little more.
Why Do You Need to Purchase Travel Insurance While Travelling?
- Vacations do not always go as planned
Medical expenses are the most common reason for purchasing insurance, but other things can and do go wrong, such as trip cancellations, delays, lost luggage, or even natural disasters and pandemics. We like to think positively about our much-anticipated trip, but we do need to be prepared for the unexpected, and that’s where nsurance can compensate you if you end up paying out of pocket due to these events.
Travel insurance policies can vary significantly in terms of coverage, exclusions and price. So take a little time to figure out what kind of travel insurance policy is best for you.
Quick note: Travel insurance is not the only insurance you may need, so when you have a moment, take the time to compare private health insurance online and learn more about how you can protect your family or kids when back from holidays.
- The government won’t foot your medical bills overseas
The Australian government can only do so much in an overseas emergency. The Consular Services Charter outlines what the government can and cannot do to assist Australian citizens travelling abroad. In fact, according to the Smartraveller website, 68% of travellers incorrectly believe the Australian government will ensure they receive medical treatment if they require it while travelling overseas or on holiday and 43% believe the government will pay for their medical bills.
If you are injured or become ill while abroad, you will be completely responsible for the hospital bills and the cost of returning home. Unfortunately, you or your family could lose hundreds of thousands of dollars if you get caught out.
- You can’t visit some countries without insurance
Many tourist destinations and countries like Thailand, Singapore and the United Arab Emirates actually require all travellers to have travel insurance. And travel insurance is also necessary if you plan to visit any of the 26 European countries in the Schengen area. According to the same research conducted by Smarttraveller, one in every four Australian travellers had an uninsurable event on their most recent overseas trip. That’s pretty high. So what can go wrong when travelling? The most common insurable incidents are:
1. Missing a connecting flight or a flight getting cancelled: If your flight is delayed or cancelled, buying travel insurance beforehand can cover the costs of additional expenses such as accommodation, meals and transportation.
2. Receiving medical treatment: Medical expenses can quickly add up if you fall ill or sustain injuries during your travels. Travel insurance can cover these costs, including hospitalisation, doctor’s fees and medications, leaving you to focus on recovering rather than mounting medical bills. (This insurance is different from having private health insurance in Australia.)
3. Damaged or lost luggage: Losing your luggage can be a nightmare, especially if it contains essential items such as passports or medication. Travel insurance can cover the cost of replacing your lost or stolen luggage so you can quickly get back to your holiday.
4. Cancelled trip: If you need to cancel your trip due to unforeseen circumstances such as illness, injury or natural disasters, travel insurance can cover your non-refundable expenses such as flights, accommodation and tours.
How To Buy Travel Insurance
You can buy travel insurance from a travel agent, travel insurer or your health, home or auto insurer. The insurance can be purchased online directly from the insurer’s website, a comparison site, an airline, in person or over the phone.
You can purchase the insurance as soon as your travel dates are confirmed so you’ll be covered if your trip is cancelled before you leave or if for some reason, you can’t travel.
While researching and comparing Australian travel insurance policies, make sure you know exactly what you are covered for.
For instance, will you still be covered if you have an accident after drinking alcohol? What happens if you crash your scooter in India? Or if you misplace your bags during a stopover? And the most relevant one – if you have Covid-19? Will you be covered for medical or extra accommodation expenses? There are many ‘what ifs’ to consider depending on where you’re travelling to and what kind of activities you’ll be doing, so read the product disclosure statement (PDS) first to make sure your particular type of holiday will be covered.
And don’t forget to purchase a policy that provides coverage in every country you visit or transit through. For example, if you are flying to Europe after a stopover in the US, getting coverage for both the US and Europe is advisable. Typically a global policy will cover this for you.
Finally
Travel insurance is essential to planning any trip within your country or overseas, and gives a lot of peace of mind to travellers, too. Remember to check the policy’s limitations and fine print before signing the dotted line, and then look forward to your wonderful holiday!
