When travelling overseas, some travellers still prefer to avoid the extra expense of travel insurance. Not a good idea, says the Department of Foreign Affairs and Trade, especially when worldwide travel insurance, compared to the potential for financial distress when travelling without cover, is so cheap.

For cheap worldwide travel insurance try comparing the benefits offered by Aussie Travel Cover, Down Under Worldwide Travel Insurance, 1 Cover Direct Travel Insurance and Suresave Online Travel Insurance, just for starters.

Read the Print – Small or Not

When you’re making a price comparison you need to do the hard yards and read those lengthy policy documents as well. Travel insurance companies usually provide a cover summary or similar on their web site, but keep in mind these are convenience-based summaries and not the full story.

Most companies, while admitting their documents are lengthy due to all the legal technicalities and trying to cover literally hundreds of scenarios, do say they try to keep their documents as concise and clearly worded as possible, but you need to read and compare before you purchase.

In fact, the insurance ombudsman indicates the rise in disputes in Australia over international travel insurance claims is largely due to misunderstandings over what aspects are covered by the policy, what dollar value the claim is ‘capped’ at, what the insurance company terms ‘unattended’ luggage or possessions, and pre-existing medical conditions.

By law, all travel insurance companies must write down any ‘potentially devastating policy terms’ in a way and style of language that is easy for their customers to understand. Some companies are quite precise in what they will and will not cover, while some other companies are quite broad in their terms.

A key point when you come to compare overseas travel insurance is to make sure you do read and understand the policy terms and conditions. If you don’t like what the company is saying, move on to check out another company.

Another key point that could almost literally mean your life, is to compare the worldwide coverage of the Emergency Medical Evacuation and Assistance that each company offers, including availability and contact details, the reputation of the emergency assist company, and what the assistance actually covers.

The Insurance Council of Australia recommends always reading the product disclosure statement prior to purchasing travel insurance, and speaking to the insurer to clarify any issues about your worldwide travel insurance. Compared to travelling without protection – it’s a no brainer.