What are you covered for?

On this page:

Medical

This is the number one reason to buy travel insurance. Look for the insurer's benefits table. If you're searching online, the benefits table is usually on the 'Quotes' screen. If you're looking at the PDS, it's near the beginning of the document. The PDS gives a quick overview of what the insurer is offering. Most policies have an 'unlimited' sum insured.

Pre-existing conditions

Some insurers don't cover pre-existing conditions at all. Some will only cover pre-existing conditions with an extra fee and sometimes a medical assessment. Some automatically cover pre-existing conditions listed in their PDS, but few will cover mental illnesses such as depression or anxiety.

Most insurers don't cover certain pre-existing medical conditions and generally don't provide cover for any illnesses or incidents that arise from these. This includes terminal illness, or any illness that shortens your life expectancy.

Minor pre-existing medical conditions such as asthma, hypertension, diabetes, epilepsy, osteopenia and more are usually covered if:

  • the condition has been stable for more than 12 months
  • there is no planned surgery
  • you have not received treatment in the past 12 months.

Could a pre-existing condition spoil your holiday plans?

  • findaninsurer.com.au lists insurers that might provide cover for pre-existing conditions.
  • Still having trouble finding cover? Get help from an insurance broker.

Examples of conditions that usually need you to be assessed before getting cover are:

  • coronary problems
  • lung disease
  • epilepsy
  • stroke or
  • any surgeries in the last two years.

If in doubt, declare your condition to your insurer at the time of purchase. Ask questions to make sure you understand what you are or aren't going to be covered for. Then you can make an informed decision.

Disability

A disability shouldn't prevent you from buying travel insurance, but it might make finding a good policy trickier and more expensive.

Is a disability a pre-existing condition?

It depends on the disability and the insurer. Many insurers will automatically cover travellers with limited mobility, cognitive impairments or vision/hearing impairments. But in some cases, this cover may come at an extra cost.

Check with the insurer as some conditions are assessed on a case-by-case basis.

Having trouble getting cover?

Under the Disability Discrimination Act 1992, insurers must assess the actual risks, rather than make assumptions about disabilities. If you're having trouble getting insurance, a letter from a medical professional might help. Especially if the medical professional can state that you're not likely to need medical or hospital treatment while on your trip.

Cover for your equipment

If you're travelling with a wheelchair, mobility aid or hearing aid, you'll need to insure that as well. Check single item limits, which are usually between $750 and $1000 per item. If you have a piece of medical equipment that exceeds this, you'll need to specify it and insure it separately.

Items like artificial limbs and hearing aids may be subject to separate limits, so check the fine print and take out extra insurance if necessary.

Cover for your carer

If you're travelling with a carer, it's a good idea to be on the same policy in case travel plans change for either of you – that way you're both covered. If you have a paid carer, ask your insurer whether they'll cover the cost of a replacement carer, in case yours can't travel.

Pregnancy

If you're travelling while pregnant, be sure to check the following.

  • Are you covered for pregnancy complications? Some insurers don't cover pregnancy at all.
  • Up until which stage of pregnancy? Pregnancy complications are usually only covered up until a certain stage (often between 23 and 32 weeks, depending on the insurer).
  • Childbirth: Not all insurers will cover childbirth. A premature birth in the United States (US) with intensive care and treatment could end up costing hundreds of thousands of dollars.
  • IVF: Not all insurers will cover in vitro fertilisation (IVF) pregnancies.
  • Do you have to pay extra to be covered for pregnancy? Some insurers may require you to pay extra for pregnancy to be covered.
  • Do you need a letter from a medical professional to say you're fit to travel? Insurers may also require you to obtain medical approval before covering you.

Tip! Travel insurance generally covers only the people named on the policy. If you're travelling while pregnant, ensure your policy covers all pregnancy stages and associated costs for your new baby, before and when they arrive.

Mental health

Travel insurers will generally cover medical expenses for mental health conditions experienced for the first time on the trip but cover for existing mental health conditions can be trickier.

Insurers may provide cover if you declare mental illness as a pre-existing condition and pay a higher premium. Check the PDS carefully. Insurers may use different terms to describe the same mental health conditions so be sure ask your insurer is something isn't clear.

Declare your pre-existing condition as insurers are highly unlikely to pay a mental health-related claim you didn't declare. An insurer might view a single visit to a therapist many years ago because of work stress, for example, as a pre-existing mental health condition.

Mental health and travel insurance have been a contentious issue for consumer rights groups including CHOICE. And it's one that's still evolving from a legal standpoint.

To find out if a travel insurance product includes mental health cover, review the cover at choice.com.au/travelinsurance, and then carefully review the PDS.

Case study

Emma and her partner visited Japan for a short babymoon. Emma was 22 weeks pregnant when they travelled, so before buying her policy, she checked the insurer's pregnancy cover. It covered pregnancy complications up to 24 weeks.

During the trip, Emma experienced unexpected pregnancy-related complications and was advised by a local doctor to rest and undergo monitoring. She was admitted overnight for observation and follow-up care. As her pregnancy was within the policy's covered gestation period and there were no known complications prior to travel, the policy responded.

Emma's insurer covered medical consultations, diagnostic testing, hospital costs and additional accommodation expenses, while Emma recovered before being cleared to continue her journey.

Age limits

Most policies have an age limit, ranging right up to the 100-year-old seasoned adventurer. There are quite a few conditions for older travellers including:

  • Higher premiums: Insurers often charge older travellers more, and in some cases 'older' can be as young as 50.  
  • Higher excess: Travellers as young as 60 but more commonly over 80 could be subject to a higher excess because of their age. The normal excess of around $100 to $200 is often increased to an excess of $2000 to $3000 for travellers 80 years and over for claims that relate to injury or illness.
  • Restricted conditions: 'Subject to medical assessment', 'reduced medical cover limits', 'reduced travel time', 'policy to be purchased 6 months in advance' – all these conditions can apply to travellers over a certain age.

Find the policy age limit at choice.com.au/travelinsurance and check the PDS for any additional conditions.

Case study

Bethany was travelling with family when their flight from Amsterdam to London was delayed. The delay caused them to miss their connecting flight from London to Melbourne. As the connecting flight was booked with a separate airline, they were not provided with any accommodation and had to incur out-of-pocket costs for an additional flight home.

Their travel insurance policy provided limited cover for a situation where scheduled transport that was cancelled or delayed caused you to miss a connecting flight (provided you allow a reasonable time between connections). So the insurer covered their accommodation and travel costs in London, because it was the initial delay that caused them to miss their connecting flight.

Cancellations – are you covered?

Plans can sometimes change. Your travel plans are no exception to this rule. You may have to cancel your trip because of illness, the airline might cancel the flight on you, or something outside of everyone's control, like a pandemic, can change everyone's plans.

Travel agents and third-party booking sites like Booking.com, Expedia and Airbnb all have their own terms and conditions. They are the first port of call to determine whether you're eligible for a refund or credit. But the fine print is still subject to Australian Consumer Law.

So what are your rights and how can you get your money back?

You'll probably want to be covered if your travel plans are cancelled for any reason. Be aware that in some circumstances insurers won't pay for cancelled trips. Check the kinds of cancellations and conditions you might not be covered for.

Examples may include:

  • Terrorism: Most insurers cover medical expenses but very few cover cancellation expenses in the event of terrorism.
  • Pandemic or epidemic: Commonly excluded.
  • Military action: Actions such as war, civil war, rebellion or insurrection are commonly excluded.
  • Natural disaster: Covered more often than not, but worth checking as some policies exclude cover for this situation.
  • Travel provider/agent insolvency: Commonly excluded.
  • Cancellation that is the travel provider's fault: Insurers commonly exclude cover for delays or rescheduling caused by the transport provider.

Just as there are common exclusions to cancellation payments, travel insurance can still cover you for cancellations, delays, stolen items and more if you have the right policy.

Whether you can get your money back from an airline, travel agent or booking site for changed or cancelled travel plans usually comes down to whether it's you or the airline or travel provider who is making the changes.

  • You're more likely (but not always) eligible for a refund or credit if a travel provider, such as an airline, cruise line or hotel, has cancelled the service you were due to receive.
  • If you cancel the trip or change your plans, it may be deemed a 'change of mind' and your options for a refund or credit may be reduced.

Tip! You've invested in travel policy. So, invest time to ensure you know what kind of transport interruptions and cancellation you're covered for.

"Almost two-thirds (62%) of overseas travellers who buy insurance do so on or before the day of booking travel"

ICA & DFAT Travel Insurance Survey 2022

What does 'unforeseen' mean?

When an insurer refers to cover for 'unforeseen circumstances', it means something that wasn't publicised in the media or official government websites when you bought the policy. Check the Smartraveller travel advice when you buy your travel insurance.

If a circumstance, risk or event is known before you buy the policy, you won't be covered if it directly affects your travel. The earlier you buy travel insurance, the more likely you are to be covered if something unexpected happens at your destination before your trip.

For example, imagine you buy travel insurance three months before your trip. Two weeks before you're due to travel, a natural disaster hits your destination and all flights are cancelled.

Because you already bought travel insurance, you should be covered and able to claim your money back. But if you didn't buy travel insurance before the disaster happened, you usually won't be covered for any losses, even if you bought the travel insurance before you left Australia.

Tip! Buying travel insurance earlier than your departure date might cost a little more, but it also might save you a lot more if the unexpected happens.

Case study

A week after a volcanic eruption made world news, Sameer booked a trip to Bali. He assumed the emergency would be over by the time he was due to fly a month later.

Unfortunately, the volcano continued to erupt, and Sameer's flight was cancelled.

His insurer declined his claim because he'd bought the flight and insurance after Smartraveller issued a travel alert about the volcanic eruption, and after it had been in the news.

Travel insurance and Smartraveller advice

The Smartraveller website, which the DFAT manages, assigns an overall advice level to more than 175 destinations. This advice level can affect your travel insurance cover.

Travel warnings can work in your favour. If an insurer excludes cover for a known event, they may still cover you to change your plans in response to updated advice from Smartraveller.

For example, most travel insurers cover natural disaster as long as you bought the policy before it became a 'known event'. Cover will vary between policies. CHOICE did a comparison on a variety of international travel insurance policies. Most covered medical expenses in a natural disaster.

But in a natural disaster you're more likely to need cover for cancellation expenses, for example if you're unable to get to the airport due to bushfire, your flight is cancelled or delayed because of a volcano erupting, or you're stuck in transit.

Travel insurance may cover you for:

  • Your medical expenses due to natural disaster
  • Cancellation if the area where you are travelling is affected and your accommodation is closed, the area is unsafe, the government has closed roads or asked people not to travel or to leave.
  • Travel delay if you can't get to your flight or transport, either internationally or domestically.
  • Emergency expenses, for example if your trip is disrupted by volcanic ash cloud.

There are several insurers that may not cover cancellation or other expenses in these situations, so make sure you check with your insurer and the policies they offer.

But beware when travelling to a destination that has a 'Do not travel' warning as most standard policies won't cover you.

If you are travelling to, or transiting through, a 'Do not travel' or 'Reconsider your need to travel' destination, look for a provider that specialises in high-risk, complex environments or war-zone travel insurance and carefully check the policies they offer. It is critical to have the right coverage for high-risk destinations as the Australian Government is usually extremely limited in its ability to help you in these locations.

You can learn more about what travel advice levels mean on Smartraveller.

Delays

Delays can be expensive, particularly if you have to pay for alternate transport or accommodation. These extra expenses won't always be covered.

  • Transport delay is only covered after a certain number of hours, usually six, but you might have to wait as long as 12 hours before your cover kicks in.
  • Cover limits for transport delays are typically lower than other cover limits and are often limited per 24-hour period.
  • Insurers often exclude cover for rescheduling caused by the transport provider. But some may cover additional accommodation and travel expenses in this scenario for travellers who are en route.

For example, if you're prevented from travelling due to unexpected circumstances, some airlines will provide you with a credit for future travel (possibly after deducting a fee). It depends on whether the delay or cancellation was due to something within the airline's control.

If you think your trip won't proceed, or you're worried about travelling due to illness or Smartraveller destination alerts, speak to your airline, booking site and/or travel agent about your options.

Baggage and personal items

Baggage cover varies widely, from $0 to $25,000. So, if you're not carrying expensive items, you might be able to save on your premium by selecting a policy that provides lower coverage.

  • Individual items are subject to sub-limits that range from around $200 to as much as $6000.
  • Higher item limits usually apply for electronic items like laptops, cameras, smartphones and tablets.
  • You can pay extra to specify items you want extra cover for (insurers are always happy for you to pay extra).
  • Valuables locked in a car or checked in on an airline, train or bus may not be covered.
  • Generally, any items left unattended may be excluded from cover, so keep your belongings close.

Case study

While sightseeing in Barcelona, Daniel was pickpocketed in a crowded area. His mobile phone and wallet were stolen. Despite reporting the incident to local police, the items could not be recovered.

Since Daniel promptly reported the theft to police, and was able to prove ownership of his phone, the insurance policy covered the value of the stolen phone, the cost of the wallet, and replacement costs for essential documents, including his driver's licence.

Lost luggage

If an airline loses your luggage temporarily and doesn't compensate you for that loss, you may be able to claim expenses for clothing, toiletries and other necessities, depending on your policy.

  • Cover usually only applies to luggage lost for more than 12 hours, though the minimum time limit varies per insurer, as does the level of cover.
  • If your policy has an excess (a fee that's deductible from your payout), remember that this applies once per claimed event, and items below the excess level can't be claimed.

Case study

Kim and her partner were travelling through Europe when severe weather caused widespread transport disruption. Their scheduled service was cancelled, which resulted in them missing their onward flight home.

With no alternative flights available that day, they incurred additional accommodation, meal and transport expenses while waiting for replacement flights.

After returning to Australia, Kim lodged a claim with her insurer, providing receipts and confirmation of the disruption. Her insurer assessed the claim and reimbursed the reasonable additional expenses incurred as a direct result of the delay, in line with the policy terms.

Car hire

Car hire companies offer insurance, for an additional cost, that reduces the amount of excess you'll have to pay in the case of an accident. Alternatively, you could use the collision damage excess cover in your travel insurance. It will still be subject to the terms of your rental contract, so you'll still need to check the car hire company's terms and conditions, but it may save you the extra insurance cost.

Tip! If you use your travel insurance in place of the rental company's insurance, you'll need to pay out of pocket to the rental car company first, and then claim a reimbursement from your travel insurer.

Do you have the right licence?

Some countries require you to have an international driving permit or a permit issued by that country. If you have an accident while driving on the wrong licence (or breaking that country's law in any other way), you may not be covered.

Cruises

Cruise-specific insurance

Cruises aren't automatically included in all travel insurance policies. If you're going on a cruise, make sure you inform your insurer to get the right cruise cover.

Cruise ships carry a higher risk for spreading disease compared to other non-essential activities and transport modes. COVID-19, influenza and other infectious diseases such as gastroenteritis spread easily between people living and socialising in close quarters.

Check travel insurance policies to make sure medical cover for contagious diseases such a pandemic or influenza is included, as some policies exclude this cover.

Case study

Erica stumbled and broke her leg during stormy seas while on a cruise. Her insurer covered the cost of evacuation and a partial hip replacement at a hospital in Noumea. It also organised and paid for her son to fly to Noumea to help Erica recover and return home to Australia. Five months later, the well-travelled 82-year-old was boarding a plane to Croatia for her next fully insured adventure.

Cruising but not leaving Australian waters?

You still need insurance. Doctors working on cruise ships don't need Medicare provider numbers to provide medical care. If they treat you, you can't claim on Medicare or your private health insurance, even if you're still in Australian waters.

Domestic travel insurance doesn't cover medical costs, so you need either international travel insurance (check that it covers domestic cruises) or a domestic cruise policy.

Case study

Margaret travelled on a multi-night cruise, departing and returning to Sydney, with no stops in other ports.

Despite not leaving Australia, the onboard medical services were privately provided and not covered by Medicare, as is often the case with domestic cruises. Margaret bought a travel insurance policy that covered domestic cruises. During the cruise, Margaret became unwell and required medical treatment on board the ship.

She was required to pay for treatment at the time. But Margaret was covered by her insurer, who reimbursed the cost of her onboard medical treatment in accordance with the policy terms.

Sports and activities

When CHOICE compares travel insurers, we look at who covers which sports and adventure activities, such as skiing, ballooning, bungee jumping and scuba diving.

But as always with insurance, the PDS can include some surprises. For example, several insurers we've reviewed will cover canyoning, but they won't cover abseiling, often a necessity in canyoning. Other policies in our comparison will cover abseiling, but not into a canyon.

If you're planning on doing anything adventurous, check to make sure you're covered. It's not enough to simply look for the tick next to your chosen activity – you also need to check the definitions in the PDS.

Motorcycles and mopeds

Hiring a motorcycle or scooter? Depending on which country you're in, you might need a local or international motorcycle licence. You probably won't be covered if you aren't obeying the local law. And even if you are doing the right thing under local law, some policies still won't cover you unless you have an Australian motorcycle licence, even if the country you're in doesn't require you to hold one.

Are you wearing a helmet? Most countries say you need one by law, but that doesn't mean it will be included in your hire. No helmet means no cover (in more ways than one).

Case study

Liam was holidaying in Bali and hired a scooter to travel short distances. Before riding, he confirmed the engine size and ensured he held the appropriate Australian licence for the type of vehicle he was hiring.

During his trip, Liam was involved in a low-speed accident and required medical treatment.

Liam's medical expenses were covered by his insurer because he was correctly licensed to ride that type of vehicle under Australian law, complied with local laws (including wearing a helmet), and met the policy conditions relating to motorised vehicle use.

Skiing and snowboarding

Some insurers cover skiing, often for an extra premium. Not so many insurers cover skiing 'off-piste', away from the groomed runs. If you're tempted to slide off the beaten path next time you hit the slopes, make sure you have a policy that covers off-piste ski runs (or pay for the optional extra cover).

Otherwise, if you have the wrong insurance, ski into a tree and have to be evacuated from the mountains, it could cost you thousands of dollars.

It's worth remembering that travel insurance only covers overseas costs. So, if you break a leg while you're abroad, your insurer will likely pay your hospital fees, but they won't cover your ongoing physiotherapy once you're back home.

Case study

Marianna fractured her leg in three places while skiing with her partner and children in Japan. Because the family had bought additional cover for winter sports, they were reimbursed $35,500. This paid for medical expenses, additional transport and accommodation, the cost of a nanny to look after the children, and business class flights back to Australia.

Some (other) common travel insurance conditions

Getting the wrong travel insurance cover can be as risky as not getting covered at all. It pays to know the common travel insurance tricks.

Alcohol and drugs

"31% of insured travellers didn't know their policy's alcohol limits."

ICA & DFAT Travel Insurance Survey 2025

Overdoing it on vodka and float-tubing down a river isn't likely to be covered by any policy. Insurers won't pay for costs arising from you being under the influence of alcohol or drugs, except where taken under the advice of a doctor.

Even one or two drinks could be enough of an excuse for insurers to get out of paying. Some insurers specify a blood alcohol limit, but many don't. If they think the amount you've had to drink caused or contributed to the event you're claiming, they might try to deny the claim.

Look for the alcohol or liquor clause under the General Exclusions in the fine print.

Relatives – what do insurers mean by this?

Many policies cover the costs to travel home if one of your relatives dies or becomes sick. Keep in mind:

  • an insurer's definition of a 'relative' may differ from yours
  • cover is usually dependent on the age of that relative, so the death of your 84-year-old grandma may not be covered
  • your relatives are subject to the same pre-existing condition exclusions as you, so if your 84-year-old grandma died from a known heart condition, you may not be covered.
  • you may be able to apply for your relative's pre-existing condition to be assessed before you buy the policy.
  • cover is limited to relatives who live in Australia, or in some cases New Zealand. So, if your 84-year-old grandma doesn't live in Australia or New Zealand, you won't be covered to fly there for her funeral.

Case study

Michael had to cancel his trip when his father in Spain suddenly died. The insurance policy covered expenses to cancel a trip and return home to a sick relative. The policy only covered this if the relative lived in Australia. Michael's claim for cancellation expenses was declined.

Does international travel insurance cover pandemics?

Many travel insurers offer limited cover for pandemics, but the available cover varies quite a lot. Most, but not all, policies cover medical costs for a pandemic disease. But these policies might not cover you to cancel your trip because of a pandemic.

Safeguard your travel plans

The COVID-19 pandemic showed that travel plans can change for reasons entirely outside your control. What should you do if your travel plans are interrupted at short notice? Travel insurance might not protect you from government border closures, general lockdowns or quarantine requirements in your destination country. The key is to understand what travel providers like airlines and cruise ships offer if things change.

  • Check the rules for travelling to your destination. For example, are there any entry requirements? What are the vaccination requirements? And what type of travel insurance do you need?
  • Read the terms and conditions of your airline, accommodation and travel tours before you book. Will they refund you if you can't travel due to a pandemic? If they only offer a reschedule or a credit, will you be able to redeem the credit in future?
  • Keep on top of the latest travel advice and requirements at smartraveller.gov.au. Travel restrictions can change at short notice.

Insolvency

What if you've booked and paid for your holiday through a travel agent, but then the travel agent goes bankrupt? You'll get your money back, right? Not necessarily.

Only a few insurers will cover you for the insolvency of a travel provider. This includes hotels, airlines and other transport companies that might go bankrupt overnight. But there are a few ways to safeguard your hard-earned holiday.

  • Check your PDS or ask your insurer if they cover you for insolvency.
  • Check with your travel agent if they have insolvency insurance. Insolvency insurance isn't compulsory, so only some agents will have it.
  • Pay with your credit card. Some banks allow a 'chargeback' if you pay for something on your credit card and don't end up getting it. A chargeback is when you ask the bank to reverse a transaction on your card that you dispute.

Tip! Don't accept any dodgy contract terms that require you to give up your chargeback rights.

Read the findings of CHOICE's comparison of travel insurance policies to see what insurers do or don't cover when airline, travel agent or accommodation providers go bankrupt.

"Only one quarter of policies in the CHOICE travel insurance comparison cover insolvency."

Source: Choice.com.au - Does travel insurance cover insolvency?

Read next:

See previous: