Benefits of Travel Insurance

Understand more about the benefits of travel insurance by comparing your options with Savvy.

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, updated on September 4th, 2023       

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Travel insurance can offer sightseers and globetrotters countless benefits, whether it’s cover for medical bills or replacing lost or stolen luggage. If you want to learn about some of the other benefits travel insurance policies can offer, Savvy can help.

By comparing with us, you’ll learn about the wider benefits of buying coverage for your next holiday. You’ll get to weigh up these advantages between providers to find the policy that suits you to a tee. Compare with Savvy and find your perfect policy today.

What are some of the main 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.

How do I find a travel insurance policy that offers me the most benefits?

If you’re looking for a domestic or international travel insurance policy that affords you the most benefits, the first thing you should do is compare your options. Savvy can help you compare the most crucial aspects of the top travel insurance plans so you can make an informed decision on which is best for your needs. Doing so not only makes choosing a policy easier, but it can save you money.

Some of the other factors you should weigh up include:

The level of coverage

The perfect travel insurance will cover you across the areas where you need it most. If you’re travelling light, for instance, you probably won’t need to take out $15, 000 worth of coverage for stolen bags and personal items. By the same token, if overseas healthcare is crucial to you, you’ll want cover which allows for significant medical claims.

Your excess

Most travel insurance companies charge an out-of-pocket sum known as an excess, which ranges from $100 to $250 but can sometimes be as high as $500. In some cases, there are providers who won’t charge you anything at all to make a claim if you’re willing to pay an extra premium.

Type of cover

If you’re travelling regularly, you may benefit from an annual travel insurance policy over a single-trip alternative. Annual travel insurance policies cover you for several trips over the course of a year, which may be less hassle than taking out individual policies every time you jump on a plane, whether it be to Indonesia or another exotic location.

Are there any drawbacks to taking out travel insurance?

There are very few downsides to purchasing travel insurance ahead of your holiday. Generally speaking, the positives greatly outweigh the negatives when it comes to taking out cover for an upcoming holiday.

The only drawbacks of travel insurance are that it can be potentially costly if you wind up not having to make a claim. Additionally, certain types of policies don’t cover specific pre-existing medical conditions, so you’ll have to pay extra for coverage of your ailment in some cases. However, it’s always better to be safe than sorry when it comes to travel insurance to avoid the risk of forking out tens of thousands of dollars.

Common questions about travel insurance benefits

How many people can I add to my travel insurance policy?

Insurance providers can allow you to add up to 25 travellers onto one policy. This can be a cheap and efficient way of getting cover, rather than buying individual policies. It’s worth remembering that if you do want to add a large number of people to your policy, they’ll all need to take out the same cover.

What do I need to make a claim on my travel insurance?

Making a claim is relatively fuss-free when you do it online or over the phone with your travel insurer. You’ll usually have to provide some details including the following:

  • Your policy number and attached email address
  • Ample details about the incident you’re claiming for
  • Any relevant documents that can back up your claim (police or medical reports, proof of purchases or photographs)

 

Once you’ve submitted your claim, it can take up to ten working days for it to be processed by your insurer. It’s important that you provide as much detail on your form as possible, as well as respond to requests for clarification quickly, as this will fast-track processing and payment of your claim.

Am I covered if I have a heart condition?

Travel insurance policies can cover heart conditions. However, you’ll likely have to pay a higher premium to be protected in the event you need medical treatment.

How do I purchase a travel insurance policy?

Purchasing a policy is relatively straightforward. You generally start by getting a quote from your chosen travel insurer. This includes providing them with some details, including:

  • Your travel dates
  • Your destinations
  • Your full name and date of birth
  • Whether you’ve been vaccinated for COVID-19
  • If you have a pre-existing condition
  • If you want extra coverage

 

Once you compare your options with Savvy and get a quote that suits your needs, you can purchase it through your chosen insurance company. 

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Disclaimer:
We do not compare all travel insurance brands currently operating in the market. Any advice presented above or on other pages is general in nature and does not consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

Savvy earns a commission from our partners each time a customer buys a travel insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via their websites.

Before purchasing your policy, we recommend you refer to the provider’s PDS for any further information on the terms, inclusions and exclusions.