Benefits of Travel Insurance

Whether you’re travelling domestically or internationally, a robust travel insurance policy can cover you against a slew of unforeseen incidents which can threaten to derail your trip.

Depending on the policy and degree of protection you choose, it can assist you if you become sick or injured while travelling, lose your belongings or have them stolen or have flight cancellations or delays. Some of the broader advantages of travel insurance policies include:

• Overseas medical or hospital bills: medical costs abroad can reach into the tens of thousands of dollars, if not more, so travel insurance can save you money if you’re hurt or ill. When travelling inside Australia, your Medicare or private health provider will cover your medical expenses.
• Cancellation: many travel insurers refund pre-paid deposits or bookings for flights, hotels and tours if you need to cancel your trip due to a covered occurrence. Sick relatives, a death in the family or being too sick or injured to travel yourself are all valid reasons for cancelling your trip and getting a refund.
• Travel delays: if your flight is delayed by more than 24 hours, most travel insurance policies cover hotel, food and other expenses. This includes if your luggage is also delayed.
• COVID-19-related costs: many travel insurance providers will pay for your COVID-19-related expenses. Most basic plans cover medical treatment if you require it after testing positive, but you’ll need top-tier coverage if you want to gain protection for cancellations if you get COVID-19 before you depart.
• Evacuation and repatriation: your insurer will cover the cost of evacuation or repatriation if you become critically ill and need to return to Australia. If you need to evacuate your cruise ship, it might otherwise cost anywhere from $50, 000 if you didn’t have travel insurance.
• Loss or damage of luggage: it’s distressing if your luggage doesn’t turn up at the baggage carousel once you disembark your flight. Having your bags damaged or broken can also be a right misery, so most travel insurance providers will offer to replace lost, stolen or damaged bags up to a $15, 000 claim limit.
• Personal liability: legal issues can be expensive when you’re abroad. If you’re held directly responsible for someone’s injury or damage to their property, your insurance may cover up to $5 million.
• Hospital cash: if you’re in hospital because you’re sick or injured, most insurers give you some spending money to buy food and magazines to make your stay more enjoyable.
• Permanent disability: if you suffer a covered accident or illness which results in you becoming permanently disabled whilst on holiday, your insurer may be able to pay out more than $50, 000.
• Optional extras: rock climbing or paragliding on holiday? Most travel insurance policies don’t cover these activities, but they can be included as optional extras if you pay a higher premium.
• Pet cover: travel insurance allows you to claim for your dog or cat’s care if your plans are disrupted and you arrive home later than planned.
• Rental vehicle excess: whether you’re travelling to Finland or taking a cruise through Europe, renting a car can be a convenient way to get about. Covering your hire car’s excess may be costly if you have an accident, however, so some travel insurance providers can cover it for you up to as much as $8, 000 to $10, 000.
• Accidental death: if your death is caused by a covered accident while you’re travelling abroad, your insurer will cover the costs of bringing your body home to Australia.
• Trip continuation: if you’re having too much fun abroad and want to extend your travel insurance cover, most providers will allow you to extend your policy for an extra six to 12 months.