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.
Does Westpac free travel insurance cover medical evacuation like from ship to nearest port hospital?
Thank you.
Hi Patricia,
Thank you for getting in touch with Finder.
Yes, medical evacuation, if needed/emergency, is covered. Please note that medical evacuation due to your pre-existing medical condition may not make you eligible for claims. You may learn more about the Westpac credit card complimentary travel insurance or you can also refer to your card’s Product Disclosure Statements/Terms and Conditions.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
Will Amex Platinum Reserve card complimentary cover be enough for a trip to turkey. We are 74 and 77 years old , in good health and physical fitness. Will this cover emergency flight back home to Australia?
Hi Kay,
Thanks for reaching out.
It looks like the insurance included with the Amex Platinum Reserve card covers medically necessary repatriation back to Australia up to a maximum of $2,500,000. It’s important to note however that it doesn’t cover any pre-existing medical conditions, so if you or your companion have had any medical issues in the past, you might want to look into a separate travel insurance policy and declare your condition. Our guide on pre-existing conditions and travel insurance might be helpful. As for whether it’s enough to cover, unfortunately only you can decide that! Hope this helps and feel free to reach out if you have any other questions. Safe travels!
Cheers,
Zahra
To cover jewellery only for a 3 week period travelling from Sydney to Lisbon Portugal, London &Amsterdam back to Sydney. Cruising from Lisbon to Amsterdam for 14days. The total value of the items is $30,000.
Hi Baden,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
If you want to find travel insurance that will cover jewellery, you may enter your travel details from our travel insurance for expensive items form. Press the ‘Get my quote’ button to compare quotes from different insurers.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
Hi, I have a very specific requirement for travel insurance – I need to find an insurer whose cancellation policy includes being able to fly home for a funeral of a family member who is both over 85 and in a nursing home. Thanks!
Hi Jen,
Thanks for reaching out! We have a page that shows travel insurance providers for family emergencies such as death. It says on the page that travel insurance can help you recover your cancellation costs including pre-booked tickets and hotels, costs associated with returning home at short notice, and costs associated with resuming your journey at a later date. Most insurers have the following conditions:
This guide outlines the benefits and conditions that apply to trip cancellation cover, including the resumption of the journey and pre-existing medical conditions.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
Me and my partner are travelling on the same dates both to Mexico. We are flying in different flights and to different cities in Mexico. We will spend some days together and some days appart. I notice that couple insurance is cheaper than two singles. Can we buy couple and dont lose any benefit specially when making a claim? or should we buy two singles?
Hey Jose,
Thanks for getting in touch!
You’re right, getting a couples policy will generally be cheaper but you need to make sure that you read the fine print once you’ve chosen an insurer you like, to make sure that you’re covered. Generally, insurers will require that you both have the same departure and return dates, but some may also specify a certain percentage of time that you need to travel together to be eligible for a couples policy. You may find our couples travel insurance page to be helpful. Have a great trip!
Cheers,
Zahra