Cheap but deadly: Australian travellers skimp on insurance
Holidaymakers are ditching travel insurance to save money, according to new research by Finder.
A Finder survey of 1,062 respondents – 718 of whom have travelled in the last 12 months – found almost half (46%) had altered their travel insurance in some way to cut costs.
The research revealed 15% had skipped taking out travel insurance altogether to reduce costs, while 1 in 5 (21%) took out the cheapest possible travel cover.
1 in 10 (10%) only insured part of their trip to keep costs down and a similar amount (9%) avoided visiting certain countries they thought would make their insurance more expensive.
A further 8% have lied on their application to hack down their premium.
Angus Kidman, travel insurance expert at Finder, said appetite for travel remains high despite cost of living pressure.
"Aussies are reluctant to cut spending on travel, but skimping on travel insurance is a really dangerous trend.
"You should never cut corners with your travel insurance – it could come with serious consequences.
"An overseas emergency can trash your finances if you don't have adequate cover.
"Bottom line? If you can't afford insurance you shouldn't be travelling in the first place."
Kidman said there can be major consequences for lying on your insurance application.
"Lying on your travel insurance application is a form of insurance fraud and can have lifelong consequences.
"If it's detected, you won't be covered and you may be refused cover in the future.
"If you have made an omission on your application, clear up any misinformation with your insurance company before you leave."
Mr Kidman said there are different levels of insurance for every budget.
"If you are worried about paying too much, compare multiple travel insurance policies so that you can purchase the coverage you need at a rate you can afford," Kidman said.
| Have you done any of the following to reduce the cost of your travel insurance policy in the past 12 months? | |
|---|---|
| Took out the cheapest option | 21% |
| Skipped taking out travel insurance | 15% |
| Only insured part of my trip | 10% |
| Avoided certain countries that I thought would make my insurance more expensive | 9% |
| Cancelled planned activities that would increase the cost of my premium (e.g. skiing, motorcycle riding) | 8% |
| Was less than truthful on my application to get a cheaper premium | 8% |
| None of the above | 54% |
| Source: Finder survey of 718 respondents who have travelled in the past 12 months, October 2023 |
Travel insurance is a must. Find out which policy suits your needs here.
