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.
Travel insurance is also handy for more serious scenarios or complications you could encounter while on holiday. For example, if you seriously damage a rental car and need to pay the excess or if important documents like your passport are stolen and you need to replace it ASAP.
While we hope you never have to use it, a comprehensive travel insurance policy can be a lifesaver when your getaway doesn’t go to plan.
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.
- Medical expenses relating to COVID-19.
- 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
- Rental car excess (optional extra)
Personal liability
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.
Do I need travel insurance?
It’s a question we hear often, but it's a question only you can answer. However, here are some scenarios where purchasing a travel insurance policy could be a good idea:
- If your trip is lengthy and expensive. If you’re planning a big getaway where you’ll be gone for a while, accommodation, flights, activities and everything else in between can start to add up. Travel insurance gives you peace of mind that you’ll be covered if things go wrong.
- If you’re planning on skiing or snowboarding. Planning on hitting the slopes? Many travel insurers allow you to purchase additional cover for specific activities, like skiing or snowboarding. This is often listed as Snow Cover.
- You’re going on a cruise. In addition to Snow Cover, you’ll also be able to purchase Cruise Cover. Even if your cruise isn’t leaving Australian waters, you might not be able to claim Medicare or your private health insurance, so it’s better to be safe than sorry.
- You wouldn’t be able to replace your belongings. From replacing your clothes to more valuable items, like your laptop, you might not have the funds to cover all of these if your luggage goes missing. Travel insurance can reimburse you for these items.
- You’re visiting a risky country. If you’re travelling to a risky country,travel insurance is a must. Keep in mind that if a travel warning has been issued, there’s a good chance your insurer won’t cover you.
- You’re renting a car. If you’re planning on getting around with a rental car at your destination, having a policy that offers rental car excess insurance might be worth considering.
- Domestic travel. If you are travelling within Australia, travel insurance isn’t a must. However, it still may be a good idea if you want coverage for your luggage or flights.
- Your credit card has complimentary insurance. Many credit card providers offer complimentary insurances, like travel insurance. However, coverage can be limited and you may need to follow certain criteria to activate cover.
- Your trip is short and cheap. If you’re heading off on a weekend away, you may not need travel insurance.
- Get ahead. While travel insurance technically doesn’t kick in the moment you buy it, you shouldn’t wait for till the last minute. Tick it off your to do list early to guarantee cover for things like flight cancellations or delays.
- Review limits. No insurers have the same two policies, which is why it’s important to review coverage limits across PDS’s to ensure you’re covered for the amount you need. Things like clothing, electronics and jewelry can be costly to replace and it’s better to be safe than sorry.
- Double check ski and sports cover. If you plan on engaging in adventurous activities or snow sports, double check whether the insurer offers it as an optional extra or if it’s automatically included.
- Be honest. If you have a pre-existing condition or have something your insurer needs to be aware of, state it upfront. It could mean the difference between being covered during an emergency or having to cough up thousands to manage your unforeseen disaster.
Did you know?
Finder research revealed a worrying 2 in 3 Australians don’t take out travel insurance. 1 in 3 admitted the reason they travelled without cover was because it was too expensive. This line of thinking could seriously drain your savings if something were to go wrong while abroad.
When you might not need travel insurance
While traveling with a comprehensive travel insurance policy is generally recommended, there are circumstances where you may not need a policy, such as:
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 and compare travel insurance policies, 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.
How to compare travel insurance
One of the easiest ways to save on your travel insurance is to shop around on policies. Finder compares 15 big name insurers to help you find the right policy. Here are 4 tips to ensure you find a winner:
When should you buy travel insurance?
It’s wise to compare travel insurance and purchase a policy 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.
How can I get travel insurance for a boat cruise for the 25/02/2020 going to the South Pacific islands. Our ages are 78 and 75 respectively. Is there any chance on getting yearly insurance or is it just for a single trip. Thank you.
Hi Delia,
Thanks for getting in contact with us at Finder!
From my research of over 15 of our travel insurance partners, InsureandGo travel insurance offers annual multi-trip policies for people up to the age of 100. Their annual multi-trip policies also offer automatic cover for on-board hospital and medical expenses as long as any pre-existing conditions are declared.
If you decide to choose a single trip policy instead, head to our cruise travel insurance page and enter your trip details into the comparison tool to compare quotes for eligible policies.
I hope this has been helpful.
Kind regards,
Jessica
Are there any insurance companies that cover Outdoor Rock Climbing without a guide. My son has already left Australia.
Hi Matilda,
Thanks for your message. Yes, there are insurers offering rock climbing travel insurance, however, they require all climbs to be with a professional/guide. Given that your son is already overseas, you may want to reach out to insurers for travellers outside Australia. As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
Hope this helps and best of luck in finding an insurer for your son!
Best,
Nikki
Hi Maureen,
Thanks for getting in touch with Finder.
You might find our pages about seniors travel insurance and pre-existing conditions to be helpful.
Some things to note:
Best of luck and enjoy your trip!
Cheers,
Jess
Hi my daughter is travelling to the US and are looking for insurance however she has Cystic fibrosis. can you assist
Hi Eddie,
Thanks for your question.
There are travel insurance with pre-existing medical conditions. You can use our table to know which pre-existing conditions are automatically covered by the travel insurance brands on Finder. The page gives you a guide on how to apply for one and an online form that gives you a list and estimated quotes relative to your daughter’s case.
As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
Hope this helps! For any further questions, feel free to reach out to us again, we’re here to help.
Best,
Nikki
I am looking for travel insurance covering high altitude trekking in Nepal up to 6000m
Hi there,
No worries! You might find our guide on trekking and travel insurance helpful. It includes the research of our partner brands, a few of which will cover you for high altitude trekking up to 6,000 meters.
Safe travels!
Cheers,
Zahra