Gap Year Travel Insurance Guide

Finally, some good news! Travel is picking up, so some insurers have started offering cover again. Just remember, you won't be covered for any pandemic related claims if you do take out domestic travel insurance.

From living in London to backpacking across Europe or immersing yourself in different cultures in Asia, there are plenty of ways to spend your gap year. However, a gap year can expose you to plenty of risks that can be really expensive, including overseas medical expenses, lost luggage and cancellations. Travel insurance can help you avoid these risks while you're backpacking, trekking, cruising and even working across the globe.

Which travel insurance brands can cover my gap year?

Provider	Conditions	Enquire
1cover	If you take out the Comprehensive plan for 12 months you can extend your policy whilst away.
fastcover	Fast Cover covers trips for a maximum of 12 months at a time, however you can extend your policy for another 12 months once you are overseas.
Insureandgo	Backpackers insurance can cover you up to 540 Days with one trip.	Get quote
Travel Insuranz	The maximum trip length of a Travel Insuranz policy is 12 months. Travel Insuranz requires you to apply for an extension if you wish to travel beyond 12months. No cover is available for any insured person who is in the USA for 365 consecutive days or more. There are no limits to the number of times you can extend, however Travel Insuranz reserve the right to decline an extension.
Worldcare	Policies can be purchased 12 Months and extended on the trip before the policy expires.

Why travel insurance for your gap year is essential

1. Common travel risks

• Lost or stolen luggage. A year's worth of items in your suitcase may be stolen in transit.
• Cancellations. Cancelled flights may require you to purchase additional accommodation and food.

• Personal liability. If you’re responsible for damage to someone's property, you could be financially liable.

2. Overseas medical emergencies

One key area travel insurance is overseas medical expenses. When you consider how much it costs to spend a night in a foreign hospital, the benefit of taking out travel insurance becomes immediately clear. For example, hospitals in the US charge more than $750 per night, and Singapore hospitals charges almost $900 per night.

3. Specific country risks

Popular destinations for gap year travellers come with specific travel risks. For example, political instability and disruptive public protests have hampered travellers to Thailand in recent years, while terrorism is a common threat across Europe.

4. Extended period of time away

When you’re spending a year away from home, your level of exposure to these travel risks increases exponentially.

5. Not convinced?

Read more on why travel insurance is a worthy investment.

Do I need travel insurance for popular gap year destinations?

*cost is based on the average of all polices for a 18 year old going on a 12-month trip to the destination.

The price of travel insurance: short term trips vs long term trips

It's useful to understand how the price of policies change over time for popular gap year destination. For example, you may be considering a trip that only goes for 8 months or you may need to extend your policy an extra month after your gap year. As shown below, travel insurance for the United states has the most aggressive increase in price over time, which is strongly related to the high cost of medical care.

Cost based on an 18 year old traveller. Prices subject to change

Extra cover that you may need on your gap year

• Rental vehicle excess cover. If your rental vehicle is involved in an accident or stolen, you could be liable for the rental company’s expensive insurance excess, which could be several thousands of dollars. Luckily, most comprehensive travel insurance policies cover this expense.
• Snow sports cover. Snow sports cover protects you from costs such as stolen or damaged equipment, equipment hire, and ski resort closure due to inclement weather. Seek snow cover if you planning on going skiing or snowboarding during your gap year.
• Adventure activities cover. Many high-risk adventure activities you might want to indulge in during your gap year such as rock climbing or hang gliding, are not automatically covered on many policies. Adding optional adventure activities cover to your policy ensures that claims resulting from your participation in such sports will be covered.
• Valuable items cover. Although a travel insurance policy may have a high amount of cover for your personal possessions should they be lost or stolen, be aware that sub-limits may apply to individual items. As a result, you may not have sufficient cover in place to repair or replace an expensive laptop or camera, so taking out extra valuables cover can be a good idea.

Am I covered if I work or volunteer during my gap year?

While you can (and should!) take out travel insurance for almost any gap year trip - whether you're working full time and travelling on the side or travelling full-time and working on the side - the way you're covered can be slightly different compared to how you're covered for a regular holiday trip. Same goes with most volunteering work.

When am I not covered while working or volunteering?

There are two areas of cover where you could run into trouble trying to claim for work- and volunteer-related incidents: medical cover and personal liability cover.

Medical cover while working during your gap year

Your travel insurance policy will probably not cover you for work- or volunteer-related injuries if you're already covered by your organization's worker's compensation. But that's fine, since you'll be covered anyway.

Where it might make a difference is in your policy's exclusions. If you're not eligible for worker's compensation, most policies will cover you for work-related injuries but some will exclude certain types of work, including:

• Manual labour (like working with power tools or working in construction)
• Missionary and humanitarian work
• Working as a crew member on a ship or airplane
• Military work

Even policies that don't have these specific work exclusions could deny your claim based on other exclusions. For example, if your policy does not include ski cover, it won't cover you if you're injured while working as a ski instructor.

Personal liability cover

This type of insurance is designed to protect you from expensive lawsuits if you injure someone or damage their property. However, most travel insurance policies won't cover you for this if the incident occurs while you're working.

The bottom line

Your best bet is to find an employer that has worker's compensation and public liability cover already in place so that you're fully covered while at work. If you can't do that, then the next best thing to do is to avoid occupations that are specifically excluded by your policy or that are risky in nature.

Learn more about travel insurance for working holidays

Am I covered for high-value items?

If you’re heading overseas for a long period of time, chances are you’ll want to take valuables such as laptops, tablets and cameras with you. Take out a travel insurance policy that offers a high level of valuables cover in case these items are lost, stolen or damaged.

Beware of sub-limits

Per-item sub-limits (such as $500 per item) may apply, which may not be enough if you need to repair or replace a high-value item. Many insurers will allow you to increase your level of valuables cover to ensure that you have adequate protection.

Can I get group travel insurance for my gap year?

If you’re travelling in a group, you may want to consider a group travel insurance policy for the duration of your journey. This can provide a convenient and cost-effective alternative to each person taking out an individual policy. However, different insurers will impose different conditions on their group travel insurance policies, including:

• The number of people covered
• Age restrictions
• Restrictions on the activities you can participate in

Am I covered for Couchsurfing or Airbnb?

Yes, if you’re staying in accommodation you’ve booked through a website like Airbnb or Couchsurfing, your travel insurance will still provide the same coverage as it would if you were staying in an ordinary hotel. This means you’ll be covered for cancellation costs and lost deposits, lost and stolen luggage and personal liability.

Follow regular safety precautions and care

You’ll still need to exercise normal safety precautions to reduce the risk of suffering a loss. For example, make sure not to leave your luggage unattended in shared Airbnb accommodation because if you do, you're claim won't be paid.

Learn more about Airbnb travel insurance cover

Can I extend my travel insurance if I want to extend my trip?

Yes, many insurers will allow you to extend your cover if needed, as long as you meet the conditions of a policy extension. Common conditions include providing

• A reason for extending your travel insurance.
• Disclosure of any new health conditions.

Note: Some insurers that you to request your extension a certain amount of time before your policy’s original end date, such as one week in advance.

How are you charged for an extension?

As the maximum trip length for policies are 12 months, you will be charged as if you were buying a new policy after your gap year.

How many times can you extend you trip?

Most insurers will typically allow you to extend your trip for another 6-12 months, whilst some insurers may have no limit on the amount of times you can extend.

Selecting the right travel insurance cover for your gap year

Ask yourself the following questions to ensure that you settle on the right travel insurance policy for your gap year:

• How long are you going for? Make sure the policy you select offers sufficient cover for the entire duration of your trip.
• What activities do you want to participate in? You may need to add snow sports or adventure activities cover to your policy.
• What valuables are you taking with you? If an insurer doesn’t offer a sufficiently high level of valuables cover, check if there’s an option to increase your limits for high-value items.
• Are you travelling by yourself? Ask yourself if you need travel insurance for just yourself or more than one person.

• What level of cover do you want? While some people only want budget cover to protect them in the case of emergency, others want the security and confidence that a comprehensive cover provides.
• How much do you want to spend? Price is always going to be a consideration when buying travel insurance, but remember that you get what you pay for in many cases. Just because a travel insurance policy is the cheapest, doesn’t mean it’s the right policy for you. In fact, it could offer cover that is far too limited, so shop around and compare a range of policies before you choose one.

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