What is travel insurance?
Travel insurance is designed to protect you financially if something unexpectedly happens while you’re away on your trip. For example, your luggage goes missing and you have to buy all new clothes; or if you roll your ankle while hiking and need to be taken to a hospital where the medical fees are expensive. These are just a few examples but you can be covered for loads more depending on what policy you take out.
Do I need travel insurance?
Only you can answer that but here’s some clarifying questions that can help get your pros and cons list going.
- How expensive is your trip? If it’s a $200 trip, you might not be bothered by losing this amount. If it’s a $15,000 Eurotrip, you’re more likely to care.
- Are your flights and accommodation refundable? If something happens and they’re not refundable, you’ll be out of pocket.
- How many non-refundable activities have you booked? If something happens and they’re not refundable, you’ll be out of pocket.
- Could you afford to replace your belongings if they were lost or stolen? This includes things like your luggage and your phone.
- What sort of healthcare arrangement does Australia have with the destination? If you’re going to NZ then you may not be concerned as it has reciprocal healthcare but if you’re going to the US then it may be something to consider.
- How long is your trip? If your trip is only a 3 day interstate getaway then you may feel that risk mitigation is less necessary.
- Did you buy the trip with a credit card that already has insurance built in? If you’re using a credit card then it’s worth checking if it has insurance built in already and what those limits look like.
- Will you be renting a car? If so, it may be worth looking at what the car rental excess benefit is like. Some insurers will cover this for up to $10,000.
- Are you carrying expensive goods that should be insured? This could be anything from an engagement ring to a CPAP machine or hearing aids.
- Is it a risky country? This is worth asking however if it’s so risky that a travel warning has been issued, then it’s likely your insurer won’t cover you if you’re planning on visiting somewhere that is considered hazardous.
- Are you going on a cruise? It can be worth considering travel insurance for this because shipboard care is very expensive so falling ill on a cruise can be very costly without travel insurance.
Decided now that you do in fact want travel insurance? Hit that button.
What does travel insurance cover?
Travel insurance covers emergencies or accidents that might happen to you or your belongings while you're away from home. You pay a travel insurer a fee (known as a premium) that is calculated based on the risks associated with your trip. In exchange, your insurer will pay you for unexpected costs related to your trip such as the following:
- Medical expenses if you're sick or injured overseas.
- Reimbursing you if you need to cancel your trip or cut it short.
- Covering your valuables and travel documents if they get lost, stolen or damaged.
- Flight cancellations
- Lost luggage
These are just a few examples of what travel insurance can cover. To understand what you’re covered for, read the product disclosure statement (PDS) on your chosen provider’s website.
How much does travel insurance typically cost?
The cost of travel insurance varies greatly based on where you’re going, the length of your trip and how risky your planned activities are. For a domestic policy, you could be looking at anywhere between $40-$100. For an international policy, you could be up for $100-$300. These price ranges are approximate and should be used as a guide only. Your own quote will differ based on where you’re headed, the length of your trip and what level of cover you select. It’s super easy to get quotes for yourself, just use the form at the top of the page and you’ll see what’s available on Finder within 30 seconds.
Keep in mind, the cheapest policy isn't always the best. It’s important to know what you’re covered for.
When should you buy travel insurance?
It’s wise to buy travel insurance once you’ve booked costly items or things that can’t be refunded. That could be flights, accommodation, activities, anything really. Once you’ve got a trip firmed up, the best way to protect it is by taking out a travel insurance policy.
"We recently had to cancel a trip to Europe due to a family emergency, resulting in thousands of dollars lost in tickets, accommodation bookings and more. Thankfully we had travel insurance through our credit card which made sure we were covered from when we booked. We received all money lost back in full for anything we couldn’t cancel."
Hi, I booked Travel Insurance with you last night Policy Number : ALZTD0087613
Can you please inform me if riding on a scooter is covered on my policy and if not can I please update?
Thanks Jill
Hi Jill, you’ll need to get in touch with the actual provider who you purchased the policy from – this page is just where you may have come to compare and then purchase. Otherwise, you should have been emailed a copy of your product disclosure statement (PDS) which will outline what you’re covered for. Hope this helps!
Will a Fastcover Insurance policy cover trekking (with a guide / accredited company) upto an altitude of 5895m on Kilimanjaro, Tanzania Africa?
Hi Kelly,
Fast Cover offers cover for hiking, trekking or tramping, provided it is at altitudes up to 3,000m where specialist climbing equipment is not required (but not expeditions to or on the Kokoda Track/Trail). You will need to buy the Adventure Pack Add-on if you wish to do hiking, trekking or tramping, peaking at altitudes from 3,000 m up to 6,000 m, where specialist climbing equipment is not required. Hope this helps!
Which travel insurance policies do not have an upper age limit on the serious illness or death of a close relative at home?
Hi Gregory,
It’s hard to find an insurer that has no upper age limit at all, though 1Cover policies are quite generous – they provider cover for relatives up to 84 years, providing cover for cancellation fees or lost deposits that arise because of the death, injury or illness of a relative aged 85 and over. Hope this helps.
2 persons will be travelling. Out of that 1 person is diabetic. Can you provide me the compare tool?
Hi, we have a detailed guide to travel insurance for diabetics which should help you out.
Hi, I’m an Indonesian citizen who hold a RRV visa. I have just arrive in y Sydney a few days ago from Jakarta, Indonesia.
From Jakarta, I have bought an one way Travel Insurance.
It means that when I have to fly back to Jakarta, I have no Travel Insurance anymore.
Do you have an one way Travel Insurance from Sydney to Jakarta next month.
Hi Karsono, Check out our guide to one-way travel insurance for insurers who offer this option.