What is Travel Insurance?

One of the perks of taking out travel insurance is the peace of mind it can give you while you’re on a domestic or international holiday. You’re safe with the knowledge that when the unexpected happens, your travel insurance covers you for a range of incidentals.

Most comprehensive travel insurance policies will offer you the following benefits:

1. Overseas medical or hospital expenses: overseas medical bills can reach into the thousands of dollars, so having travel insurance coverage will save you a stack of cash if you find yourself with an injury or struck down by an illness. If you’re travelling within Australia, any healthcare costs are covered by Medicare or your private health insurer.
2. Evacuation: if you become gravely ill and your insurance company’s team of doctors determine you need to come back to Australia, they’ll cover the cost of evacuation and repatriation. This includes if you need to abandon ship if you’re sailing the high seas on a cruise, which could cost you anywhere from $50, 000 to charter an air ambulance if you don’t have insurance.
3. Cancellation: while you hope you won’t have to use it, many travel insurance providers will allow you to get back any pre-paid deposits on hotels, flights or tours if you need to call off your holiday due to a covered event. Valid reasons for cancelling include being too sick or injured to travel or a family member becoming unwell or dying.
4. Lost or damaged luggage: it can be stressful if you’re waiting at the baggage carousel and your luggage doesn’t turn up. It can also be a nightmare if it turns up at your destination damaged or broken. Most insurance companies will reimburse or replace your luggage if it’s lost, stolen or damaged up to an agreed claim limit, which is usually about $15, 000.
5. Personal items: taking your mobile phone or laptop with you on holiday? Most insurance policies have sub-limits that allow you to claim for lost, damaged or stolen items. For example, some may allow you to claim up to $1, 500 for damage to your mobile phone while you’re on holiday.
6. Pre-existing conditions: most travel insurance providers include a list of 30 to 40 pre-existing conditions which are automatically included in your coverage. These usually include certain types of diabetes, asthma (for those under 60) and osteoporosis. If you suffer a more serious condition or recently had an operation, however, you will likely have to pay a higher premium.
7. Delay: most travel insurers will allow you to claim for accommodation, food and some essentials if your flight is delayed by more than 24 hours. This also includes if your bags are delayed due to an interruption to your scheduled plane.
8. Personal liability: being embroiled in legal woes overseas can result in hefty costs. If you’re found personally liable for damage or injury to another person, your insurance provider can typically cover related costs to the tune of up to $5 million.
9. Accidental death: if you die overseas due to a covered accident, your insurance company can organise the repatriation of your body at their expense. They can also pay for any funeral or cremation expenses, usually up to about $25, 000.
10. Optional extras: doing a spot of rock climbing or scuba diving on your holiday? Most travel insurance policies won’t cover these activities under their standard policies, but will instead offer you extra cover to give you protection.