Travel Insurance
“If you can’t afford travel insurance, you can’t afford to travel”. You may have heard that phrase before, and it is absolutely correct! Even if you’re just popping over to Australia or having a Pacific island break – Never skimp on this. Medical claims requiring evacuation can sometimes run into hundreds of thousands of dollars! People have even died because without travel insurance they were unable to pay for proper medical care.
There’s quite a lot to unpack as far as common inclusions and exclusions, so there is also a separate guide discussing that here. It is very important to understand these!
Note this is applicable for regular (paid) travel insurance policies. For information on credit card provided travel insurance see our guide here.
Purchasing Travel Insurance:
You should arrange your travel insurance as soon as you book your trip, as cancellation cover is standard. This means if due to for example injury or sickness, you cannot go on your trip, travel insurance can refund you costs you’ve already paid for.
In addition, make sure to be very clear and honest with medical conditions, otherwise you run the risk of potentially very expensive claims being declined.
Where to buy?
There are many places you can get travel insurance. From travel agencies, banks, to the usual big insurance companies and even specialist travel insurance companies.
Typically, the banks represent poor value. See our comparison here which compares premiums across different providers.
You should also factor in the type of travel you plan to do, as some insurers may not cover you for certain activities.
Policy Types:
Single Trip:
Basic level cover: Typically has lower coverage amounts for baggage value, cancellation costs and often won’t include additional benefits like rental vehicle excess, loss of income cover, hospital allowances etc.
If you have a relatively straight forward trip and aren’t bringing many valuables with you, then this may be suitable. You’ll still be covered for the significant events such as medical emergencies and loss of baggage.
Comprehensive: Tends not to cost much more than a basic policy, and has a lot more inclusions. Expect to be covered for rental vehicles, dental emergencies, death or disablement, cash & documents, delays and much more.
For more complex trips it’s definitely worth the extra cost for this coverage.
Multi-Trip:
If you travel overseas multiple times per year, then it is worth looking at annual trip policies. These will provide an unlimited number of trips with variable limits on the duration – Generally up to a maximum of 90 days per trip.
Excess:
With cars we typically advice a high excess to lower your premium, as there is a high likelihood an accident will be involving a high value claim regardless. With travel insurance we reverse this idea, and the lower the excess the better.
Claims are more common, but typically lower value. A lost passport, or stolen camera doesn’t sting as much when you’re paying a low excess.
Sometimes you will also find excess free medical claims, to ensure you always seek medical attention if something is wrong.