- Where are you going?
- How long are you going for?
- What are you going to do there?
- Are you taking any valuable items?
- Do you have any medical conditions?
1. Where are you going?
The level of cover and the cost of travel insurance can vary depending on the region you’re travelling to, and some risks may be of greater concern than others. Not all travel insurance policies cover COVID-19 and other pandemics or epidemics such as Severe Acute Respiratory Syndrome (SARS). And not all policies cover you for changing your plans due to a riot or civil commotion, for example. Travel insurance also may not be available for countries with travel alerts.
- Look up your destination on smartraveller.gov.au and make sure you’re aware of any risks or safety advice.
- Buy a policy that covers you for every country you’re travelling to or transiting through. If you’re going to Europe via a one-night stopover in the US, then get cover for the US and Europe. Usually a worldwide policy will cover this.
“87% were covered by travel insurance on their last overseas trip.”
You need different cover for different regions
Insurers sometimes apply policies to regions rather than having a policy for each destination.
Asia Pacific: Destinations such as New Zealand, Bali, Fiji and Papua New Guinea.
Asia: Destinations such as India, Indonesia, Thailand, Singapore and Malaysia.
Europe: Destinations such as the United Kingdom, Ireland and Western Europe.
Worldwide: All of the above as well as regions such as North America, South America, Japan and Africa.
These definitions differ for each insurer. For example, several insurers cover travel to Bali under their Pacific policy, while some will only cover travel to Bali under their Asian region policy.
2. How long are you going for?
Just a quick trip? Simply buy a standalone travel insurance policy for a set number of days.
Travel often? Consider an annual multi-trip policy or a credit card with complimentary travel insurance, but make sure it gives you the cover you need.
Tip: Annual multi-trip policies and credit card policies can restrict the length of each trip you take – anywhere from 15 to 365 days depending on your policy. Some allow you to pay for extra days.
3. What are you going to do there?
Cruising the open road on a moped? Carving up the ski slopes? Partying at a wedding? These things aren’t necessarily included in a travel insurance policy.
Scan the insurer’s list of included activities and those that you’ll have to pay extra for. And take it easy on the grog – if your alcohol or drug intake is the cause of an adverse event, it won’t be covered by your policy.
4. Are you taking any valuable items?
Do you need cover for a digital SLR camera or an expensive tablet or laptop? Cover for such valuables can vary from a few hundred dollars to thousands, and higher cover will often mean a higher premium.
Consider adding cover for portable valuables to your home insurance policy instead, but check on the excess and if the policy will cover you worldwide and not just in Australia.
Policies also vary when it comes to how they cover valuable items. Valuables in your check-in luggage often aren’t covered, while cover for baggage stored in your hire car is inconsistent. And baggage left unattended is never covered, which can include a bag that is stolen from the seat beside you in a restaurant while you’re looking the other way.
Make sure you have receipts for your valuables as travel insurance will not pay if you can’t prove you own them.
“Over half of travellers were frustrated by the difficulty understanding policies, and choosing the best one.”
5. Do you have any medical conditions?
If you have a medical condition that existed before you bought your policy, it may not be covered. This can range from something as common as allergies or asthma through to diabetes, heart conditions and knee replacements.
If you’re not sure, the best thing to do is contact the insurer to ask whether they’ll cover your condition automatically or whether you need to do an assessment.
Case study
The Massoud family* was holidaying in Singapore when 13-year-old Nazreen had a recurrence of severe bronchitis, which had affected her in Australia before their trip. The family’s travel insurer refused to pay any hospital bills as Nazreen’s bronchitis was a pre-existing medical condition. As a result, the Massouds had to ask their friends to transfer the $17,000 they needed to cover Nazreen’s hospital expenses, additional accommodation and the cost of changing flights.
*To protect privacy we have changed names and some details