Time to read : 4 Minutes
Why Skipping Travel Insurance Is A Bad Idea
As an island nation, the joy of travel is second to none for many Australians.
So it hardly came as a surprise that as soon as our borders reopened following the COVID lockdowns, many hurried to plan their next overseas adventure.
Over the winter months alone, nearly three million of Aussies crossed the pacific to nurture their wanderlust.
🛫 Here’s why you shouldn’t pass on travel insurance in the process.
Checking passports and policies
Needless to say, the world has changed a lot on the past couple of years. And the travel industry has undoubtedly been one of the hardest hit.
To this day, it continues to grapple with the aftermaths. For travellers, this has meant exercising more caution before and after dusting off their passports.
So the reasons for getting travel insurance are aplenty:
According to smartraveller.gov.au one in four Aussie travellers experienced an insurable event on their last overseas trip.
Travel insurance provides additional peace of mind, knowing you and your family are covered for most events.
Travel insurance not only covers medical emergencies, it also covers your belongings as well potential trip delays or cancellations.
Australia has a reciprocate healthcare agreement with some countries like New Zealand, the UK, Ireland, Belgium, Finland or Italy but different countries have different healthcare systems. However, there still may be a gap to pay.
In countries like the US getting sick or injuring yourself can cost big bucks. Medicare won’t cover you here.
Some countries require you to hold travel insurance before you arrive. Such as Cuba, Turkey, Czech Republic, Estonia, Latvia or the United Arab Emirates (UAE). This usually also counts for cruise ships, too.
A layover gone wrong
For John and Marleen, a layover in Munich unexpectedly turned into an extended hospital stay.
Just a few hours earlier pair was in Africa, boarding the first leg of their long journey back home. By the time they landed in the small airport of the Bavarian capital, it was clear they weren’t going to board a connecting flight anytime soon.
Marleen had started experiencing stabbing pain in her stomach. At the hospital, it didn’t take long for the doctors to identify the culprit: appendicitis. Marleen needed immediate surgical attention.
“It was a truly terrifying situation,” recalls John.
“Here we were in a foreign country where we didn’t know the language. But we were lucky in happened where it did. And we were lucky we had the right cover. It meant that we didn’t have to worry about hospital costs, accommodation or missing our flight.”
Common types of travel insurance
According to the latest Travel Insurance Global Market Report the travel insurance industry is booming. In fact, it’s projected to reach an average annual growth rate of 17.2% in 2022.
At the same time, the global market value is set to double from $16.05US billion to $32.61US billion between 2021 and 2026.
What’s more, in 2021 Asia Pacific was the largest region in the travel insurance market. For Australian travellers, that’s good news. It means more choice and offers across the board, increasing your chances of finding a policy that meets your needs.
🧳 Some of the most common types include:
Single-trip travel insurance: these policies cover you for set dates of one trip only.
Annual multi-trip travel insurance: if you’re a frequent traveller, you may benefit from a policy that covers you for multiple trips all year round.
Long-stay travel insurance: if you’re planning to stay overseas for an extended period of time, namely between three and 18 months, this type of insurance has got your back.
Complementary credit card travel insurance: some credit card provider like Qantas or American Express offer complementary travel insurance if you pay for your trip with their card. This can be a hassle-free option for frequent travellers. However, it pays to read the fine print.
Domestic travel insurance: this type of insurance covers you for travel within Australia. While your medical needs are already covered by Medicare, it can still come in handy to protect yourself from things like booking cancellations, rental car excess and losing your belongings.
What to look our for when booking your travel insurance
Like with all other types of insurance, travel insurance is not a once-size-fits-all solution. Different policies come with different benefits and levels of covers, so it’s worth reading the fine print to see if:
Your policy covers every country you’re planning on visiting on your trip.
It excludes any pre-existing health conditions that may affect you.
It covers everyone in your family joining the trip.
It covers the activities you’re planning to do on your trip.
It covers the loss or damage of any high-end valuables such as jewellery or technical equipment (think wedding rings, cameras, or laptops).
The bottom line
Travel insurance often seems like an unnecessary expense until something unexpected happens.
And if the last couple of years have taught us anything it’s that you never know what’s right around the corner.
🍀 In the end, you may be better off knowing you’re covered rather than risking it all.
