A new survey has revealed a concerning trend of uninsured travel among Australians. Many people are putting themselves at risk by travelling overseas without protection.
Quantum Market Research surveyed 1000 travellers on behalf of the Insurance Council of Australia (ICA) and Smartraveller. The results found that one in six Australians (16%) weren't covered by travel insurance on their last overseas trip.
Young travellers were more likely to risk not being covered. More than half (60%) of under 30s surveyed said they would consider travelling overseas without insurance in the future.
Travel insurance is as important as your passport. Travel doesn't always go to plan. An unexpected accident or illness can cost 1000s of dollars. Comprehensive travel insurance can protect you or your family from the financial burden of a trip gone wrong.
The survey also found that even among those with travel insurance, many are overconfident about their coverage and have not properly read their policy documents.
Just one in five (19%) insured travellers said they had spent time reading every detail of their product disclosure statement (PDS) before travelling.
Reading the PDS can be daunting. But it's essential to understand what your insurance does and doesn't cover. You may need to purchase add-ons to cover all your planned activities, particularly if you're doing anything adventurous. The CHOICE travel insurance buying guide has advice to help you read the fine print.
The survey found that one in seven (15%) recent travellers who went without insurance said they did so because they couldn't afford it.
And a third (34%) of travellers said they would consider travelling without insurance to save money in response to the rising cost of travel. Most (86%) travellers will find ways to keep costs down while travelling, which may increase their risk exposure.
Resist the temptation to get the cheapest option without checking that it suits your needs. The most important thing is choosing a policy that covers what you need for you and your trip. This also applies to free credit card travel insurance. Consider your unique needs and read the PDS. If it's not a match, it's not good value. Plenty of insurers have a range of travel insurance policies to choose from. Shop around.
Key survey findings
- One in six (16%) Australians were not covered by travel insurance on their last overseas trip.
- Younger travellers (under 30) were most likely to travel without insurance (60%).
- Even among insured travellers, many are overconfident about their coverage and have not properly read their policy documents (19%).
- The rising cost of travel is prompting more Australians to travel without insurance or to take risks that may not be covered (34%).
- Most (86%) travellers will find ways to keep costs down while travelling, which may increase their risk exposure.
- Read the press release from the Insurance Council of Australia
- Find advice on choosing the right insurance in the CHOICE travel insurance buying guide
- See our general advice on travel insurance