Table of Contents
- 1) Match Your Coverage to Your Itinerary
- 2) Get the Right Coverage for Your Destination
- 3) Buy Travel Insurance Soon After You Book Your Trip
- 4) Check Your Credit Card’s Perks for Travel Insurance
- 5) Look into Adventure Travel Insurance If You’re Planning Riskier Activities
- 6) Confirm Covid Coverage
- 7) Find Out if Your Travel Insurance Company Has a Mobile App
- 8) Don’t Assume Travel Insurance Is Cost-Prohibitive
- 9) Keep Your Receipts Before You Leave on Your Trip
- Bottom Line
- Frequently Asked Questions (FAQs)
A solid travel insurance plan is a smart way to protect the investment you make in a trip in case the unexpected happens. And as any Australian who has ever travelled knows, the unexpected is always a possibility.
In fact, the government’s Smartraveller found that one in four Australian travellers experienced an insurable event on their last overseas trip.
If going on a great vacation is one of your goals for this year, here are some top tips for finding the best travel insurance policy and making the most out of your coverage.
Featured Partners
1
Fast Cover Travel Insurance
Medical cover
Unlimited, 24/7 Emergency Assistance
Cancellations
Unlimited, (Trip Disruption $50,000)
Key Features
25-Day Cooling Off Period, Australian Based Call Centre, 4.6 Star Product Review Rating
2
Cover-More Travel Insurance
Medical cover
Unlimited, with a $2000 limit to dental
Cancellations
Yes, amount chosen by customer
3
Southern Cross Travel Insurance
Medical Cover
Including medical treatment, doctors’ visits, prescribed medication, specialist treatment & medical transport costs
Cancellations
$2,500 with option to increase to unlimited
1) Match Your Coverage to Your Itinerary
Your holiday itinerary plays a significant role in determining how much coverage you might need. Let’s say you’re booking an overseas excursion with connecting flights that includes multiple sightseeing tours, entertainment at various venues and some exploration and sporty activities.
For a trip like this, consider a comprehensive travel insurance plan that includes:
- Trip cancellation and trip interruption coverage that can reimburse you for prepaid, non-refundable costs if you have to cancel or cut your trip short, due to reasons listed in the policy.
- Trip delay insurance to compensate you for expenses incurred during a layover and for missed activities you paid for in advance that are non-refundable.
- Medical expenses coverage for medical treatment, medicine, X-rays and more due to a medical emergency.
- Baggage loss coverage that can provide compensation if your luggage is lost, stolen or damaged.
On the other hand, if you’re travelling on a cruise in Australian waters, you’d want to look for a domestic travel insurance policy that includes cruise coverage. That is why there is no one-size-fits-all for travel insurance, as different trips require different types of coverage.
2) Get the Right Coverage for Your Destination
If you’re travelling only within Australia, Medicare and/or your private health insurance may cover any medical needs that arise–but it might have very limited, if any, coverage overseas.
That’s why it’s often crucial to have travel medical insurance for trips outside the country. This type of coverage is for costs such as:
- Doctor bills;
- Ambulance service;
- Hospital room charges;
- Operating room charges;
- Examinations, X-rays and lab tests; and or
- Medication and prescriptions.
3) Buy Travel Insurance Soon After You Book Your Trip
Travel insurance starts working the moment you purchase your policy. Trip cancellation and interruption insurance reimburses you for any non-refundable purchases you make (such as a flight or hotel) if you need to cancel for a covered reason, such as an illness.
If you’ve purchased, get sick and then purchase travel insurance, you won’t receive any reimbursement. You need to have insurance prior to falling ill.
What’s more is that some travel insurance providers offer “cooling off” periods, which allow you to cancel the coverage within a certain period of time if necessary. This is commonly 21 days and allows you time to confirm you are happy with the coverage that will be provided.
4) Check Your Credit Card’s Perks for Travel Insurance
Before you put down money on a travel insurance plan, look into what coverage you might already have in your wallet. You might be pleasantly surprised if your credit card includes travel insurance.
For example, a credit card might offer trip cancellation and trip interruption insurance. This coverage kicks in if you cancel for an acceptable reason or if your trip is cut short due to problems covered by the credit card, like severe weather.
However, travel credit cards might not offer the same level of coverage as a standalone plan. For instance, Qantas credit cards offer complimentary travel insurance that includes medical emergency expenses up to $1 million, yet most dedicated comprehensive travel insurance policies offer unlimited medical coverage.
Additionally, in order to receive a credit card’s travel insurance benefits, you must use the card for booking the trip–whether directly or via credit card points.
5) Look into Adventure Travel Insurance If You’re Planning Riskier Activities
Travel insurance policies typically have exclusions for high-risk activities. For example, if you’re skydiving or parasailing during the trip, your travel insurance’s medical coverage may be void if you get injured while undertaking these activities.
If your trip includes activities that skew from the traditional sightseeing or museum tours, make sure to get a policy that will cover your specific higher-risk activities. It’s common for Australian travel insurance policies to offer this coverage as an additional add-on, which would then increase the price of your policy.
Usually, these add-ons are split into snow cover for snow sports; adventure cover for more adventurous activities, such as those mentioned above; and cruise cover, which protects travellers on cruising holidays.
6) Confirm Covid Coverage
While there are fewer travel restrictions related to the Covid-19 pandemic, it is still a consideration for many travellers. If you’re concerned about Covid-related problems, be sure any travel insurance plans you’re considering cover Covid-related cancellations and/or medical costs.
Keep in mind that coverage may be dependent on your vaccination status, despite vaccinations no longer being government-mandated in Australia. For example, insurance provider Fast Cover will only pay out Covid-related claims if the insured has two vaccinations. This includes medical cover and trip cancellation coverage.
While other insurance providers may not have this vaccination requirement, there are often conditions to paying out Covid claims. This includes cancellations or quarantine necessities only being claimable if enforced by the government, which is no longer an occurrence in Australia.
7) Find Out if Your Travel Insurance Company Has a Mobile App
Some travel insurance companies have mobile apps that make it easy to manage your trip plans (and problems) on the go. For example, the Cover-More App monitors worldwide events and notifies you in real time if potential threats are developing nearby, so you can avoid potentially risky situations, according to its website. It can also connect you instantly to the 24/7 emergency team, Cover-More Assist, should you need it.
Another benefit is that you can file and track claims from the app. This is especially advantageous for travel delay benefits. For instance, if you’re eligible for a travel delay claim, you may be able to receive reimbursement for last-minute accommodation during your layover instead of having to pay the money up front and receive compensation after you return home and file a claim.
While an app isn’t a complete drawcard for a travel insurance policy, it does have many benefits.
8) Don’t Assume Travel Insurance Is Cost-Prohibitive
You may think travel insurance is a pricey proposition, but it can be relatively affordable. If you’ve paid thousands of dollars in deposits for your holiday, travel insurance can be a wise way to safeguard the investment.
It’s also easy to include the cost of travel insurance into your travel budget, considering you can get quotes online for different providers to find a plan to suit your needs. Additionally, you can usually customise your coverage to make it fit your budget. For example, some insurance companies will allow you to choose the limit on your cancellation cover, with the lower limits then resulting in a lower premium.
9) Keep Your Receipts Before You Leave on Your Trip
People buy insurance of all kinds in the hopes that they never have to use it. However, if you do need to make a claim, you want to ensure you have all the supporting documentation required for faster processing.
When there are delays in processing a claim, the most common reason is that the policyholder didn’t provide sufficient proof or documentation to demonstrate their actual financial loss. Many travellers think the only receipts or documentations required will be those that occur on the trip–such as receipts for accommodation due to a delay–but that isn’t necessarily the case.
If you’re making a baggage claim, for example, you’ll need to make sure you have copies of receipts of any items you would want reimbursement for should your luggage be stolen or lost.
Featured Partners
1
Fast Cover Travel Insurance
Medical cover
Unlimited, 24/7 Emergency Assistance
Cancellations
Unlimited, (Trip Disruption $50,000)
Key Features
25-Day Cooling Off Period, Australian Based Call Centre, 4.6 Star Product Review Rating
2
Cover-More Travel Insurance
Medical cover
Unlimited, with a $2000 limit to dental
Cancellations
Yes, amount chosen by customer
3
Southern Cross Travel Insurance
Medical Cover
Including medical treatment, doctors’ visits, prescribed medication, specialist treatment & medical transport costs
Cancellations
$2,500 with option to increase to unlimited
Bottom Line
There are clearly many different considerations you need to make before taking out a travel insurance policy, such as whether the insurance provider has a mobile app or whether you already have complimentary travel insurance via your credit card.
While these considerations are important, the most important thing is to ensure you have cover that suits your trip. If you don’t, you will find yourself unable to make claims. For example, if you are going on a snowboarding trip, there is little point in taking out a policy which won’t cover snow sports.
The same is true for destinations: some travel insurance providers may not offer coverage to certain destinations in the world. Be sure to know what you’re doing and where you’ll be doing it before shopping around for a policy, and that way you’ll choose a plan that suits your needs.
Frequently Asked Questions (FAQs)
Is there a maximum age to purchase travel insurance?
Each insurer will have their own maximum age or requirements for purchasing travel insurance after a certain age.
For example, 1Cover charges a $3000 excess for travellers over 80 years old, while Bupa covers all ages. Be sure to check the product disclosure statement to make sure your age is covered, especially if you are turning a certain age while on the trip.
What is the best travel insurance?
Comprehensive travel insurance plans are considered the best for travellers, as these plans usually cover everything from lost luggage to emergency medical requirements. For budget-conscious travellers, you can often choose more ‘bare boned’ policies; however, keep in mind that you may end up severely out of pocket should the unfortunate happen.
To compare different policies, read our best comprehensive travel insurance guide.
How do you find the best travel insurance policy?
The “best” travel insurance policy will vary from person to person, with factors such as age, trip length, destination and activities all playing a role in the type of coverage a traveller needs. To find the most suitable travel insurance for you, consider the tips above and then source quotes from travel insurance providers online. Remember to always carefully read the product disclosure statement of any potential policy, to ensure you don’t get caught out with any exclusions or conditions.
Does travel insurance cover pre-existing conditions?
Whether or not your cover will extend to pre-existing conditions—medical conditions you’ve had from before taking out the policy—depends on the insurer. Only certain providers offer this benefit, and often charge more to do so.
You can find which conditions a policy covers in its PDS, as these can differ between insurers. Common conditions, such as asthma, diabetes and hypertension, are generally covered.
What isn't covered by travel insurance?
Travel insurance can cover a vast number of unfortunate scenarios that can arise during, and in the lead up to, your holiday—especially if you take out comprehensive cover. However, there are always limitations and exclusions to consider, which can vary greatly between policies. Before purchasing a policy, it’s important to read the PDS thoroughly, as it will outline the conditions for when you can and cannot claim.
Generally, you can expect an insurer to refuse claims resulting from intoxication or disorderly behaviour, or not wearing the appropriate safety gear when taking part in activities and sports, if you’re claiming for an associated injury. Many insurers will also refuse claims if you travel to a part of the world when Smartraveller’s advice for the region is “Do not travel”. To minimise the risk of invalidating your policy, it can help to check Smartraveller’s advice before purchasing cover, and again before travelling.
Can I get a refund on my travel insurance policy?
You’ll find that travel insurance policies offer a cooling-off period of typically 21 days, during which you can get a refund, if you decide the cover isn’t right for you.
You can find the details concerning a policy’s cooling-off period in its PDS. Some insurers, such as Allianz may only offer a partial refund even during this period. It and Insureandgo allow 14 days to change your mind about the policy, while TID, our top pick for comprehensive travel insurance, allows 21 days.
