Passenger jet flying over tropical island

Are my flights and hotel covered by travel insurance?

Your flights and hotels may be covered by your travel insurance depending on the policy you’ve chosen.

Travelling overseas is a fun experience, but nobody plans for things to go wrong. Unfortunately for some people, things always don’t go according to plan so being prepared for it is essential - that is why travel insurance can be a huge investment.

In most cases holidays run smoothly, but there may be some risks you may be exposed to when travelling overseas. For example, if one of your flights is delayed for a few hours, you may miss your next transit flight and the airline may charge you a fee for rescheduling. Likewise, if you lose your passport you may have to change or cancel your hotel accommodation and flights.

Just in 2012, the Department of Foreign Affairs dealt with 20,000 cases helping our Aussies in trouble overseas. If you have no or inadequate insurance, the financial cost of getting yourself out of trouble overseas can be a huge one.

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Travel insurance*

Depending on the level of cover you’ve chosen, you’ll be covered up to a certain amount for additional accommodation and travel expenses. It’s important to check the Product Disclosure Statement (PDS) before signing up to know exactly what you’ll be covered for. Another thing to look out for is how the PDS words the type of cover you want.

For example, 1 Cover, a popular travel insurance provider, defines ‘additional accommodation and travel expenses’ as a situation where you cannot travel because of an illness or injury. If you’re looking for a policy that covers you and your companion while travelling, then their policy refers this as ‘emergency companion cover’. Again, if you’re looking for cover in the case that your journey is interrupted by any reason you can’t control, the policy is referred to as ‘disruption of journey’.

James decides which cover to take

Sample Image

James is about to go on a holiday to Europe for a month and has decided that he wants to take out travel insurance. He looks at the pamphlet from 1 Cover Travel insurance and looks at the types of policies they have available. It’s important for James to have disruptions to his flights covered, in the case that his flights are late and he misses any connecting transit flights (as he is travelling all around Europe). He notices that 1 Cover’s Comprehensive policy is the only one that provides this benefit. After reading the terms and conditions, he is happy with the policy and signs up.

Travel insurance policies explained

Be mindful that policies will differ according to the insurer and the type of cover that you get, so the titles mentioned here may not necessarily match those of your current insurer. But here is a general idea of what you can expect from them if you want to be covered for flights and hotels.

  • Additional accommodation and travel expenses. The insurer may reimburse you for any reasonable additional accommodation and travel expenses if you cannot travel due to illness. The illness needs to be in the extent that you need immediate treatment from a medical practitioner and they will need to certify you. You may also be reimbursed for disruptions to your journey for reasons such as political unrest, unknowingly breaking any quarantine rule or losing your travel documents.
  • Emergency companion cover. If you’re travelling with somebody else, then your insurer may reimburse you for reasonable accommodation and travel expenses for your stay with your companion, if he or she cannot continue their travels due to illness. This may also cover the case if you’re ill and a relative or companion needs to travel to escort or stay near you. A medical practitioner will have to certify you or your companion to be eligible.
  • Disruption of journey. Your travel insurer may reimburse the cost of your reasonable additional meals and accommodation expenses if a disruption to your journey occurs. Some insurer will have a specific timeframe as to how much your journey can be delayed up to and will have a cap to the amount they may pay out. Keep in the mind that your insurer may not pay if your transport or accommodation provider financially collapses.

Learn more about travel insurance and how to apply

How to claim

To make a claim, you will usually need to give your travel insurer some notice by completing a claim form physically or online, or calling them directly. If your claim form isn’t completed properly, or you don’t provide sufficient information, then your claim may not be fully processed. You will have to give your insurer all the information and evidence they ask from you, otherwise you risk the chances of your claim being rejected.

Credit card travel insurance*

Credit card travel insurance cover is usually more restrictive than those provided by a travel insurer. However, the same rules apply - you need to read the terms and conditions before signing up. Depending on the tier of your credit card, whether its gold, platinum or black there could be different levels of cover.

Most platinum level and above credit cards will provide travel insurance, but there will be different limits set by the insurer. It’s important to note that your credit card provider is not your travel insurer, so if you want to make a claim, you need to direct these to your travel insurer.

For example, Commonwealth Bank Gold, Platinum and Diamond credit cards have different levels of medical and contents benefits, but have the same benefits for complimentary travel insurance. Gold, Platinum or Diamond cardholder automatically receive base cover insurance and can activate the full travel insurance policy by logging into Netbank. The base cover also applies to your eligible spouse or any dependent children travelling with you. The base cover will provide 3 months of insurance after the date of departure for Gold personal and business cardholder’s, 6 months for Platinum personal and business cardholders, or 12 months for Diamond cardholders.

Credit Card Travel Insurance

Travel insurance tips

  • Aussies actually have no legal entitlement to financial assistance from the Government is something goes wrong overseas, which is why travel insurance is highly recommended.
  • Don’t just consider insurance for your accommodation and flights, you’d be surprised how often travellers lose their phones or luggage as well.
  • Always be prepared to claim, before you leave the country, ensure you’ve noted all the relevant phone numbers both on your phone and physically.
  • Some travel insurers charge higher premiums if you’re over the age of 60. Travel insurance experts recommend going online for the same deals at a cheaper price, regardless of age.
  • Don’t just rely on your credit card as many business or sporting activities may not be covered. Generally, cover only lasts for 3 months and cannot be extended once you’re overseas. A good idea is to check what your credit card currently provides and use a separate travel insurer to fill in the gaps.

*Insurance policies are up to date as of 17 July 2013. Remember to always read through the PDS before applying for any financial product.

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Isaiah James Peralta

Isaiah is a Personal Finance Publisher for, when comes to Credit Cards and Travel Money, you're speaking his language. His forefront value is genuine help, and empowering users to make better informed decisions is almost quite simply, second nature.

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10 Responses

  1. Default Gravatar
    DaveAugust 11, 2017

    I just wanted to know what is actually covered when the insurers say additional accommodation and travel expenses? (what is considered additional travel expenses)


    • Default Gravatar
      ArnoldAugust 11, 2017

      Hi Dave,

      Thanks for your inquiry.

      This usually covers travelers that become ill/injured while on holidays and the incident has disrupted your travel plans. Cover is also provided for various other disruptions to your journey.

      Under most comprehensive policy cover is provided for reasonable additional accommodation and travel expenses if you can’t travel because of an injury/illness.

      May also reimburse you the reasonable costs of your return to Australia if your journey is cut short due to injury/illnesses.

      May reimburse you for the costs of your scheduled transport is canceled or delayed etc because of a strike, riot, hijack, civil protest, weather or natural disaster.

      Cover provided if the disruption arises from the loss of your travel documents, you’re in an accident or your home is left uninhabitable by fire, explosion, earthquake or flood.

      Hope this information helped.


  2. Default Gravatar
    PeterApril 13, 2017

    If I purchased my hotels on and got a hotel confirmation of booking, but later find out that my reservation has been cancelled OR find out on arrival that the costs are far higher, will travel insurance cancel this? Reason being is that I made a booking at a great rate on, but have read they can cancel bookings on the ground that no money has transferred hands yet and that it was a misprint.

    I need to book flights so don’t want to find my accommodation ends up being considerably higher as my hotel gets cancelled.

    • finder Customer Care
      ZubairApril 18, 2017Staff

      Hi Peter,

      Thank you for your question. Travel insurance cover varies from policy to policy and from brand to brand. You will need to speak with your insurer about the specifics of your policy.

      All the best,

  3. Default Gravatar
    CherylFebruary 26, 2015

    Thank you – just one more question – should I take out the insurance when I first purchase the travel deal or can I wait until I book my flight?

    • finder Customer Care
      RichardMarch 3, 2015Staff

      Hi Cheryl,

      Thanks for your question. It’s really up to you. As insurance covers cancellation it might be best to take out cover as soon as you’ve booked anything, just to be on the safe side.

      I hope this was helpful,

  4. Default Gravatar
    CherylFebruary 25, 2015

    I wish to purchase a travel deal for accommodation at a Ski Lodge in Charlottes Pass, in the Blue Mountains of NSW. I would like to know if I can take out Travel Insurance to cover the cost of the accommodation if I need to cancel at the last minute. I will also be taking out travel insurance for the flights to Sydney but haven’t booked these as yet.

    • finder Customer Care
      RichardFebruary 26, 2015Staff

      Hi Cheryl,

      Thanks for your question. Yes, you can take out cover for cancellation. If you would like to compare your travel insurance options, please put your travel details into the quote form above.

      I hope this was helpful,

  5. Default Gravatar
    LinaNovember 8, 2014

    I am about to book a trip to Bali. As I work in the nursing industry I am concerned that something unexpected may come up and would not be able to go on holidays. Would I be covered by travel insurance and if so which company would I need to cover with.

    • finder Customer Care
      RichardNovember 10, 2014Staff

      Hi Lina,

      Thanks for your question. Whether or not you are covered for cancellation, and to what extent, depends wholly on the policy you choose. Before you purchase any policy, make sure to read though the PDS to know what situations you are covered for in the event of trip cancellation.

      I hope this was helpful,

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