What should a travel insurance policy cover?
Important:
Travel insurance rules continue to change as a result of the coronavirus pandemic. We’re working hard to keep up and make sure our guides are up to date, however some information may not be accurate during the pandemic. It’s even more important to double-check all details that matter to you before taking out cover. Please know that some policies may not be available through Finder at this time. Here are some helpful tips:- If you're buying a policy today, it's unlikely that you'll be covered for border closures
- If your travel plans go against government advice, your policy will most likely be voided and you won't be covered
Do you know which areas are most important to cover before taking off?
Buying travel insurance is a must for most Aussies heading abroad. A 2017 Smartraveller study found that a stunning 91% of us get cover before heading overseas. Which is great! But, what is a "must have" when it comes to travel insurance cover?
We spoke to Travel Insurance Direct's (TID) Ash Zaman about the difference between the benefits that are commonly claimed versus those that are most important to have covered. To get these results, TID looked at what benefits were commonly claimed in 2017; and for important benefits, Zaman consulted with TID's customer service team.
Probably not surprisingly, the top of the list for both "must have" covered and most commonly claimed was medical attention.
"It’s not surprising to see that ‘medical attention’ topped the list. We know from our data that it’s the most researched upon benefit by customers. The thought of incurring whopping expenses for medical treatment overseas has rightfully put it at the top of people’s minds when buying a policy," Zaman told finder.com.au.
There was some cross cover with what were the most commonly claimed benefits and those that were important to have covered:
| Cover | Importance | Commonly claimed |
|---|---|---|
| You need medical help | 1 | 1 |
| You are in an accident | 2 | 2 |
| Your luggage and personal effects | 7 | 3 |
| Your flight is cancelled or delayed | 3 | 4 |
| You have to cancel your trip | 8 | 5 |
| Your travel is delayed | 4 | 6 |
| Your bags are delayed | 9 | 7 |
| You have to return home early | 5 | 8 |
| You have to pay rental car insurance excess | 11 | 9 |
| You need medical evacuation | 6 | 10 |
| Your passport or travel documents | 10 | 11 |
| Your credit cards | 13 | 12 |
| You incur a loss of income | 12 | 13 |
| You suffer a total permanent disability | 14 | 14 |
| You become legally liable | 15 | 15 |
| Accidental death | 16 | 16 |
One item that saw an increase in the number of people making a claim in 2017 was rental vehicle insurance excess.
"That’s not necessarily an indicator that we are becoming worse behind the wheel overseas. Rather it’s a sign that more and more people are realising they’re covered by travel insurance and opting to claim rather than pay out of their own pocket," Zaman said.
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Finally, some good news! Domestic 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.
International travel insurance is limited and sometimes unavailable at this point.
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