What does travel insurance cover?

What is covered by travel insurance?

Medical benefits

• Medical treatment for injuries or illness incurred overseas, including medical, hospital, surgical and nursing expenses
• Overseas medical assistance, including 24/7 assistance, ambulance fees, medical evacuation, funeral arrangements, messages to family at home and hospital guarantees
• Permanent disability e.g. a benefit payable for loss of sight in one or both eyes or loss of use of a limb within 12 months of an injury sustained on your trip
• Accidental death e.g. an accidental death benefit is payable if you die as a result of an injury sustained during your trip
• Dental expenses e.g the cost of emergency dental treatment, usually to a specified limit.

Transportation benefits

• Additional transport expenses following travel delays in order to reach events such as weddings, funerals, conferences and prepaid tours
• Cancellation fees and lost deposits e.g. cover for your prepaid travel arrangements is important when circumstances beyond your control such as illness, injury and natural disasters occur
• Disruption of journey covers the cost of additional meals and accommodation incurred after a delay if your journey is disrupted because of unforeseen circumstances beyond your control
• Family emergency covers the cost of additional travel expenses if your travelling companion or relative is disabled by an injury, requires hospitalisation or dies unexpectedly

A resumption of journey benefit protects you from the cost of airfares to resume your journey if it was disrupted due to the death or hospitalisation of a relative

Personal belongings benefits

• Replacement of luggage and personal effects if they are lost, stolen or damaged during your trip
• Replacement cost of lost or stolen credit cards and losses resulting from their fraudulent use
• Delayed luggage provides cover to buy clothing and essential items due to the delay, misdirection or misplacement of your luggage and personal items by a carrier for more than 12 hours.
• Cover for the theft of bank notes, currency notes, postal orders and money orders
• Replacement cost of lost or stolen travel documents such as passports, travel documents and travellers cheques

Personal benefits

• A hospital cash allowance provides a daily allowance if you are hospitalised overseas for longer than 48 continuous hours.
• Loss of income pays out a weekly benefit if you become disabled as the result of an injury sustained on your trip and are unable to work after returning home.

Liability benefits

• Personal liability covers your legal liability for injury or property damage to third parties, including legal costs and compensation.
• Rental vehicle excess covers the excess payable on your rental vehicle's insurance if it is stolen or damaged and the cost of returning it to the nearest depot if you are unable to do so.

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Find travel insurance to cover a range of mishaps

What do the different types of travel insurance policies cover?

The three main types of travel insurance are single trip, annual and domestic travel insurance.

Single trip insurance

Annual travel insurance

Domestic travel insurance

What isn't covered by travel insurance?

• Claims related to the reason a destination has a 'Do not travel' warning (some policies exclude any claim from travel to a 'Do not travel' destination, so check your PDS)
• Known events (e.g. if you try to claim for something that you should have already known about, such as a volcanic eruption)
• If you leave your bags alone they are stolen
• If you try to claim for something while you are under the influence of alcohol or non-medication drugs
• Illegal acts while driving
• Claims arising from the confiscation, detention or destruction of anything by a government authority.
• Pre-existing medical conditions unless stated otherwise by your insurer
• Adventure activities considered to be high-risk such as skiing, sailing, rock climbing, contact sports, hang gliding and skydiving, unless additional cover has been obtained for them
• Underwater diving using scuba gear, unless you are with a licensed instructor or have a current Open Water dive licence.

Are pre-existing conditions covered by travel insurance?

What is covered?

• Conditions covered by travel insurance vary from insurer to insurer, but usually include conditions such as asthma, cataracts and gastric reflux.

What isn't covered?

• Serious conditions such as cancer and heart disease usually aren't covered automatically. You'll generally need to declare them for a medical assessment, and the insurer may then offer cover (often for an extra premium) or decline. The conditions an insurer can't cover at all are listed in the PDS.

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Frequently asked questions

• Is travel insurance compulsory?

  No it is not legally compulsory for most destinations. However many countries or tour operators may strongly recommend or even require it particularly for high risk activities or certain visas. It is always wise to have travel insurance for financial protection and peace of mind.

• When should I buy travel insurance?

  It is best to buy travel insurance as soon as you book your trip. This ensures you are covered for events that occur before you depart such as illness, injury or unexpected cancellation of your travel plans. Some benefits like cancellation cover only apply from the purchase date.

• How do I make a travel insurance claim?

  To make a claim you will generally need to contact your insurer as soon as possible often through their 24/7 assistance line. You will need to provide documentation supporting your claim such as medical reports, police reports, receipts for lost items or booking confirmations for cancelled flights.

• What is a policy excess?

  A policy excess is the amount you pay towards a claim before your insurer pays the rest. For example if you have a $200 excess and make a claim for $1000 your insurer will pay $800 and you pay $200. You can often choose a higher excess to lower your premium or a lower excess for more comprehensive cover.

• Does travel insurance cover natural disasters like bushfires or floods?

  Travel insurance can cover you for unforeseen natural disasters like bushfires, floods, earthquakes and volcanic eruptions. However it will not cover you if the natural disaster was a "known event" before you purchased your policy or booked your trip whichever occurred last. Always check your policy's Product Disclosure Statement for specific details.

• Am I covered for pandemics, epidemics or COVID-19?

  Most international policies now cover COVID-19 medical costs and cancellation if you test positive. What is not covered is disruption without a positive test, such as border closures, government travel bans, quarantine directives and simply not wanting to travel. Limits differ between insurers and between policy tiers, so check the Product Disclosure Statement.

• Does travel insurance cover mental health conditions?

  Many travel insurance policies do not automatically cover mental health conditions especially if they are pre-existing. Some insurers may offer limited cover or allow you to add cover for certain conditions by declaring them and paying an additional premium. Always disclose any mental health conditions when applying for a policy.

• What if I need to shorten my trip and return home early?

  If you need to shorten your trip and return home early due to unforeseen circumstances like a family emergency, serious illness or injury your travel insurance may cover the additional costs incurred such as new airfares. This is often referred to as a "curtailment" benefit. Be sure to check your policy's terms and conditions.

• Can I get cover for adventurous activities like bungee jumping or whitewater rafting?

  Many standard travel insurance policies exclude adventurous activities like bungee jumping, whitewater rafting, skydiving or scuba diving unless specifically stated. You can usually purchase additional cover as an add on for these higher risk sports often for an extra premium. Always declare your planned activities to your insurer.

• Does travel insurance cover rental car excess?

  Yes many comprehensive travel insurance policies include cover for rental car excess if your rental vehicle is stolen or damaged while overseas. This can save you from paying the high excess charged by rental companies. Always confirm this benefit in your policy's Product Disclosure Statement before you travel.

• What if I lose my jewellery or expensive watches?

  Travel insurance typically covers the loss, theft or damage of personal belongings including jewellery and watches up to a specified limit. For high value items you may need to list them individually on your policy and pay an additional premium to ensure they are fully covered.

• What if I get into a car accident while driving overseas?

  Travel insurance does not usually cover damage to a vehicle you are driving overseas beyond rental car excess cover. It typically covers your personal liability for injury or property damage to third parties arising from an accident. For damage to the vehicle itself you would rely on the vehicle's own insurance or your rental car excess cover.

• Is pregnancy covered by travel insurance?

  Travel insurance for pregnancy varies by insurer and policy. Most policies will cover unforeseen medical complications arising from pregnancy up to a certain gestational week, usually 23 to 26 weeks, though some go further. Cut-offs are usually earlier if you're expecting more than one baby, and pregnancies involving IVF or other fertility treatment may need to be assessed or may not be covered. Routine check ups or childbirth itself are typically excluded. You must declare your pregnancy when applying for cover.

Written by

James Martin

Journalist

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James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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James has written 167 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
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Co-written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 521 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living