Travel insurance is an essential part of planning a holiday, but who wants to study insurance small print when you could be poring over maps and goading jealous friends with travel brochures?
This guide to getting the right travel insurance will have you back in holiday mode in no time.
In the helpful case studies you'll find throughout this guide, we've changed some names and details to protect privacy.
On this page:
Why get travel insurance?
If you're leaving Australia, travel insurance is just as essential as a passport.
Holidays don't always go as planned
Medical expenses are the number one reason to get insurance, but sometimes other things can go wrong, such as trip cancellations, delays, lost luggage or even the big stuff like natural disasters and pandemics.
If you end up out of pocket because of these things, insurance can make up for that.
The Australian government won't pay your medical bills
In an emergency, the Australian Government can only help so much. The Consular Services Charter describes what the government can and can't do to help Australians overseas.
If you end up injured or sick while overseas, you'll be footing the hospital bill and the cost of flying home. If you're really unlucky, that could cost you or your family hundreds of thousands of dollars.
In a personal medical emergency, the majority of travellers expect one or more types of assistance the Government may not be able to provide
Some countries won't let you in if you don't have insurance
Singapore and the United Arab Emirates both require you to have travel insurance, not to mention all 29 European countries in the Schengen Area if you're applying for a visa to visit.
Read the Smartraveller travel advice for information about your destination.
Marco had breathing difficulties on his way home from Europe, causing his flight to be diverted to the UAE. Hospitals in the UAE won't admit you unless you have insurance or can pay an upfront fee. Marco's family had to pay thousands of dollars for his treatment.
Travel insurance for countries with reciprocal healthcare arrangements
Australia has reciprocal healthcare agreements with several countries: Belgium, Finland, Italy, Malta, the Netherlands, New Zealand, Norway, the Republic of Ireland, Slovenia, Sweden and the United Kingdom. If you have Medicare, you can get subsidised treatment for essential services only in these countries, which often leads people to ask whether they still need travel insurance.
The answer is yes, for the following reasons:
- You're usually only covered for urgent care that can't wait until you get home.
- If you're very ill, travel insurance can pay for a medical escort to bring you home to Australia.
- You still may have to pay fees for treatment and medication. For example, in New Zealand reciprocal health care doesn't cover you for free or subsidised care by a general practitioner or ambulance.
- Travel insurance can cover you for cancellations, delays, stolen items and more.
Remember to take your Medicare card with you. You'll need it, along with your passport, to prove you're eligible for reciprocal health care. For more information, visit servicesaustralia.gov.au.
Why travel insurance is so important
Travel insurance is an essential if you're travelling abroad. Ensure you don't get caught out.
Do you need domestic travel insurance?
Most of us already have medical cover at home, be it Medicare or private health insurance or both, but there are a few reasons to consider domestic travel insurance.
- Cancellation: If you've spent a lot on your holiday, then it's not too much extra to buy travel insurance in case of the unforeseen.
- Baggage cover: If you're travelling with valuables, consider whether you want them covered for theft, loss or damage.
- Car hire excess: You can save money using travel insurance to cover your collision damage excess, rather than paying the car hire company's extra charge.
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.
If you're planning to go on a cruise, be extra careful. Some travel insurers may not offer COVID-19 cover for multi-night cruises or they may restrict the cover provided on cruises.
Also, don't rely on the travel insurance on your credit card unless you check it closely – it may not cover claims related to COVID-19 or pandemics more generally.
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 may not protect you from government border closures, general lockdowns or quarantine requirements in your destination country. So 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 pandemics such as COVID-19? If they only offer a reschedule or a credit, will you be in a position to redeem the credit in future?
- You can book flexible tickets for flights but they can be very expensive.
- If you book through a travel agent or booking site, what are their terms and conditions? Will they refund you or provide a credit? Are there cancellation fees?
- If you pay by credit or debit card (and you selected 'credit' when you paid), you may have access to credit card chargebacks if something goes wrong.
- Keep on top of the latest travel advice and requirements at smartraveller.gov.au. Travel restrictions can change at short notice.
- If you do have to cancel, your travel insurer will ask you to claim back what you can from travel providers first. Read the CHOICE advice on how to get your money back on travel cancellations and ask your travel insurer if you can get a refund or partial refund of your travel insurance premium.
How to get travel insurance
Where
You can buy travel insurance from a travel insurer, travel agent, insurance broker, credit card provider, or even from your health, home or car insurer.
How
You can buy travel insurance online (direct from the insurer's website, from a comparison site or through an airline booking site), over the counter or over the phone.
When
Buy travel insurance as soon as you know your travel dates. That way you're covered if your trip is cancelled before you even leave or if you're unable to travel at all.
What
You can certainly buy travel insurance quicker than it will take you to read this guide, but do you know what you'll be covered for? Will you be covered if you trip over after having a drink? If you crash your scooter in Thailand? If you lose your wallet during a stopover? If you miss a flight because of a car accident?
93% of people who travelled with insurance were unaware or unsure of at least one common policy exclusion
There are a lot of 'what ifs' to consider, depending on where you're going and what you'll be doing, so it's worth reading the product disclosure statement (PDS) first to make sure you'll be covered.
Will you use your travel insurance?
Hopefully not, but here are the most common claimed events:
- flight or tour cancelled
- flight delayed more than 12 hours
- received medical treatment
- lost, damaged or stolen luggage
- missed a connecting flight
- lost, damaged or stolen cash or personal items
- forced to cancel trip before departure.
Will the insurers pay out?
Australian travellers lodged over 261,000 insurance claims in 2022–23. Almost 165,000 claims were accepted, paying out almost $362 million.
The top four reasons for declined claims:
- due to policy exclusions, or not included in the policy conditions
- claim amount was below the excess
- claim was due to a pre-existing medical condition
- claim was for an item that was stolen while it was unattended.
If you're leaving Australia, travel insurance is just as essential as a passport.
5 things to consider before you buy
1. Where you're 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 you're 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.
Note: 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 you're 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. Taking 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.
Over half of travellers were frustrated by the difficulty understanding policies, and choosing the best one
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.
How to save money on travel insurance
It's important to compare policies for cost and cover. The average price of travel insurance fell slightly in the year to September 2024, but well over half of the policies actually increased in price. So it still pays to shop around.
86% of travellers will find ways to keep costs down but this may increase their exposure to risk if those options are less safe
1. Buy early
The further out from your departure date that you buy travel insurance, the more you're likely to pay for it, but you'll be covered from the moment you buy your policy. For example, if you buy insurance two months before you fly, you effectively have cheap cover for any events that affect your travel plans in those two months.
Left it until the last minute, or even later? Only a few insurers let you buy insurance once you're already overseas (look for the 'Have you already left Australia?' checkbox when viewing policy options).
2. Buy online
While not all policies offer online discounts, plenty do. Make sure you understand the policy and what it covers. Sometimes (but not always) a reduced price may mean reduced cover.
CHOICE tip: Check asic.gov.au/afslicensing to find out whether the agent has an Australian financial services (AFS) licence or is an authorised representative of a licence-holder. Take the usual precautions when giving your credit card and other details over the internet.
3. Member discounts
Does your health, car or home insurance provider also sell travel insurance? Some companies give 10–15% discounts to existing members.
4. Shop around
Trying to negotiate with a website will probably get you nowhere, but if you're buying over the phone or through a travel agent, give it a go.
Travel agents pocket a commission when they sell you insurance, so if you find a better deal elsewhere, ask them if they can beat it.
Almost two-thirds (62%) of overseas travellers who buy insurance do so on or before the day of booking travel
5. Use your credit card
Some credit cards come with 'free' travel insurance when you use them to buy a ticket, pay for other travel expenses or otherwise activate it (we say 'free' because you'll pay a premium in fees for the card itself).
This type of insurance can sometimes be a money-saver, and the level of cover can be just as good or even better than standard insurance, but make sure it gives you the cover you need.
6. Compromise on cover
While good medical cover is always essential, you could save money on your premium by choosing a policy with lower or variable cover for cancellation, delays and lost baggage, especially if you aren't spending big on your holiday or taking expensive items with you.
How to navigate travel insurance fine print
You're about to click 'buy', so you may as well just tick this 'I acknowledge I've read the product disclosure statement' checkbox and bon voyage…
But wait – have you checked the fine print? In the insurance world, that 'fine print' is contained in the product disclosure statement, or PDS (that thing you said you'd read).
How to read a PDS
There are hundreds of policies out there and if you tried to read all the paperwork that comes with each policy, you'd have to extend your holiday just to recover.
If you don't have time to read the whole PDS cover to cover, at least look for the following:
- The table of benefits is an overall summary of your cover.
- The policy cover section is essential reading and is generally split into 'what we will pay for' and 'what we won't pay for'.
- General exclusions are also essential reading – these are events that aren't covered by any section of the policy.
- Pre-existing conditions can remind you of forgotten ailments and are essential reading for anyone with any kind of medical condition, no matter how mild.
- The word definition table might contain a few surprises – it's a good place to check on the definition of a 'relative' or a 'moped', for example.
- The claims section lists some further pointers to be aware of (e.g. it's a good idea not to admit fault or liability in the case of an accident) and the paperwork you may need to collect while you're away if you need to make a claim, such as police reports.
- COVID-19 cover section – many policies have a special section listing medical, cancellation and other cover available for COVID-19.
- The 24-hour emergency assistance contact number (write it down and keep it handy).
The Weaver family was relieved to have travel insurance when they needed to cancel their holiday. The family wanted to go skiing in New Zealand, but a few days before they were due to depart, 12-year-old Ruby had cold symptoms. A COVID-19 test showed she was positive. Ruby and her whole family had to isolate and their travel insurance paid their cancellation costs.
The list of travel insurance disputes taken to the Australian Financial Complaints Authority (AFCA) reveals a battlefield of unread or misinterpreted terms and conditions. Between 1 July 2023 and 30 June 2024, AFCA received 2054 travel insurance complaints.
Not all travel insurance policies are the same, and the wrong policy can be almost as bad as none at all.
Katherine's luggage was stolen from the designated cargo section on board a bus in Barcelona. The insurer declined her claim for 2500 Euro in losses (over $4000).
According to the insurer, Katherine should have had the bag on her lap, or stood beside the bag in the cargo section of the bus, instead of leaving it 'unattended'.
AFCA ruled in Katherine's favour, saying it "was not reasonably possible for the complainant to avoid leaving her bag unattended in the circumstances."
According to research conducted in 2022, of those who bought travel insurance:
- 45% have skim-read the PDS
- 43% have read the PDS in detail
- 8% have left the PDS to another person on the policy to read
- 2% have not and will not read the PDS
- 2% don't know.
What you're covered for and what the catches are
Medical cover is the number one reason to buy international travel insurance. Look for the insurer's benefits table, usually on the quotes screen online or near the front of their PDS, for a quick overview of what they're 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, although few will cover mental illnesses such as depression or anxiety.
Insurers exclude cover for 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 as well as organ transplants.
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.
Pre-existing condition spoiling your holiday plans?
- findaninsurer.com.au lists insurers that may provide cover for pre-existing conditions.
- Still having trouble finding cover? Enlist the help of an insurance broker.
Examples of conditions that usually need to be assessed before getting cover are coronary problems, lung disease, epilepsy, stroke or any surgeries in the last 2 years.
If in doubt, declare your condition to your insurer.
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 will need to be assessed on a case-by-case basis.
Having trouble getting cover?
Under the Disability Discrimination Act, 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, particularly if they 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.
Many insurance policies exclude hearing aids, 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 should yours be unable to travel.
If you're travelling while pregnant, 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 US with intensive care and treatment could end up costing hundreds of thousands of dollars.
- IVF: Not all insurers will cover IVF pregnancies.
- Do you have to pay extra to be covered?
- Do you need medical approval to be covered?
Many travel insurers won't provide cover of any kind for hospitalisation, medication or missed travel caused by a mental health condition, whether that's depression, anxiety or a psychotic episode.
Others will 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, giving them wriggle room to deny a claim.
Insurers are highly unlikely to pay a mental health-related claim if they discover it was a pre-existing condition that you didn't declare. The trouble is, 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.
A woman in Victoria won a court case against her insurer after they declined her claim for the cancellation of an overseas trip due to depression. "We took out the travel insurance well in advance of the travel, and well before my depression. I was certainly under the impression that I was covered," she told CHOICE. "They just sent back a letter that said no." But her win (the Victorian Civil and Administrative Tribunal awarded her $4292 for economic loss and a further $15,000 for non-economic loss) was an isolated ruling. It's still being debated whether or not a general exclusion for mental health claims is legal.
Most policies have an age limit, ranging right up to the 100-year-old seasoned adventurer. There are quite a few catches for older travellers, though.
- 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 may 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 six months in advance' – all of these conditions can apply to travellers over a certain age.
You'll probably want to be covered if your travel plans are cancelled for any reason, but be aware that insurers will come up with plenty of excuses to avoid paying up.
- Terrorism: Most insurers cover medical expenses but very few cover cancellation expenses in the event of terrorism.
- Pandemic or epidemic: Commonly excluded.
- Military action: Commonly excluded.
- Natural disaster: Covered more often than not.
- Travel provider/agent insolvency: Commonly excluded.
- Cancellation due to travel provider's fault: Insurers commonly exclude cover for delays or rescheduling caused by the transport provider.
John and his partner's scheduled train service was delayed, seriously diverted, then terminated, which meant they missed their flight home by several hours. Re-booking fees, emergency accommodation and related fees cost them between $1000 and $1500, but the insurer wouldn't pay the claim as trip interruption wasn't in the policy.
What are 'unforeseen circumstances'?
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 an event became known before you bought the policy, you're not covered. So the earlier you buy travel insurance, the more likely you are to be covered for the unexpected.
Exclusions and inclusions
When the Australian Financial Complaints Authority (AFCA) looks at a complaint about an insurer, they expect you to prove the claim is covered by the policy, while the insurer must prove the claim is excluded by the policy. Specifically, AFCA expects you to 'establish on the balance of probabilities that you suffered a loss caused by an event to which the policy responds'. That is, do you have a valid claim?
This means that you need to understand if your claim is covered under the listed events of the policy, or that it is not specifically excluded by the policy.
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. Unfortunately, it only covered this if the relative lived in Australia. Michael's claim for cancellation expenses was declined.
Travel insurance and Smartraveller advice
Smartraveller, managed by the Department of Foreign Affairs and Trade (DFAT), assigns an overall advice level to more than 175 destinations. This advice level can affect your travel insurance cover.
The advice levels are:
- Level 1 – Exercise normal safety precautions (covered).
- Level 2 – Exercise a high degree of caution (covered).
- Level 3 – Reconsider your need to travel (check).
- Level 4 – Do not travel (usually not covered).
Travel warnings can work in your favour. If an insurer excludes cover for an event, they may still cover you to change your plans in response to updated advice from Smartraveller.
But beware when travelling to a destination that has a 'Do not travel' warning. Most standard policies won't cover you for 'Do not travel' destinations, including for COVID-19.
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.
Delays can be expensive, particularly if you have to pay for alternative transport or accommodation. And those extra expenses won't always be covered.
- Transport delay is only covered after a certain number of hours, usually six, but you may 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.
Baggage cover varies widely, with travel insurance policies ranging from $0 to $30,000. So, if you're not carrying expensive items, you may 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 $250 to as much as $5000.
- 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.
Jing sat down to try on a pair of shoes in a busy London shoe shop, placing her handbag next to her on the seat. When she got up to leave, she discovered her bag was gone. Her insurer refused to pay up because she had left her bag unattended in a public place.
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.
Angelo and Diane tried to claim $112 for meals and drinks when their connecting flight to Hawaii was delayed by eight hours. Although their policy technically covered them for the cost, they were liable for an excess of $250, so their claim was denied.
If you don't feel like paying the 'extra insurance' the car hire company charges, then use the collision damage excess cover in your travel insurance. Stick with recognised car rental companies in this case since this cover only applies if the car hire company already has its own comprehensive insurance.
Do you have the right licence?
Some countries require you to have an international driving permit. 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.
Cruise-specific insurance
Cruises aren't automatically included in all travel insurance policies. If you're going on a cruise, make sure you have the right 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 COVID-19 is included, as some policies exclude this cover.
Erica stumbled and broke her femur during stormy seas while on a cruise. Her insurer covered the cost of evacuation and a partial hip replacement at a hospital in Noumea. They also organised and paid for her son to fly to Noumea to help her 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.
Not leaving Australian waters?
You still need insurance. Doctors working on cruise ships don't need Medicare provider numbers, so 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: Kerry thought she'd done the right thing buying an annual multi-trip international travel insurance policy for a number of upcoming holidays. One of these was a round-trip cruise departing from and returning to Fremantle, WA, with no port stops. When she had to cancel due to ill health, she discovered her policy wouldn't cover her because the trip wasn't considered an international one.
When CHOICE compares travel insurers, we look at who covers which sports and adventure activities, such as skiing, ballooning, bungee jumping and scuba diving, to name a few.
But as always with insurance, the PDS may 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 scooters
Hiring a motorcycle or moped? 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 a motorcycle licence.
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).
Nhung was injured after she rented a scooter in Thailand only to find out the engine size was not covered by her insurance policy. Most insurers adopt the national standard for the definition of a scooter (moped) – an engine capacity under 50cc. If the engine is bigger than that, it's a motorcycle, and you'll need an Australian motorcycle licence.
Skiing and snowboarding
Some insurers cover skiing, often for an extra premium, but not so many cover skiing off-piste (away from the groomed runs). So, 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 run into a tree and have to be evacuated from the mountains, you may need to think about selling your home to pay for it.
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 $35,466 for medical expenses, additional transport and accommodation, the cost of a nanny to look after the children and business class flights back to Australia.
Overdoing it on vodka and float-tubing down a river isn't likely to be covered by any policy. Insurers simply 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.
Read more about travel insurance and alcohol exclusions.
Many policies cover the costs to travel home if one of your relatives dies or becomes sick. Bear 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 that live in Australia, or in some cases New Zealand. So if your 84-year-old grandma is in China, you won't be covered to fly there for her funeral.
Amanda and her husband had booked an overseas diving trip, but shortly before the trip, Amanda's mum passed away from pneumonia. They cancelled their trip and incurred cancellation costs and lost deposits of nearly $13,000. As the death of a parent was covered in their policy, Amanda made a claim. Their insurer denied the claim as Amanda's mum lived in the United States and was undergoing treatment for lung cancer, so the insurer concluded that her death was caused by a pre-existing condition.
So you've booked and paid for your holiday through a travel agent, but then the travel agent goes broke. You'll get your money back, right? Not necessarily.
Only one quarter of policies in the CHOICE travel insurance comparison cover insolvency
Only a few insurers will cover you for the insolvency of a travel provider, and that includes hotels, airlines and other transport companies that might go broke overnight (remember Bonza?). But there are a few ways to safeguard your hard-earned holiday.
- Check whether your insurer covers you for insolvency.
- Check whether your travel agent has insolvency insurance (this isn't compulsory, so only some 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 actually getting it.
CHOICE tip: Don't accept any dodgy contract terms that require you to give up your chargeback rights.
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Stock images: Getty, unless otherwise stated.
