Why Buy Travel Insurance?
Whether you're a frequent traveller or are planning the trip of a lifetime, unexpected things can happen when you're away from home. From overseas medical emergencies and trip cancellations to lost luggage, these situations can quickly become stressful and expensive.
For some travellers, it's not just a good idea, it's a requirement to enter the country.
Travel insurance can help protect you from unexpected costs and provide support when things don't go to plan. Here are five reasons to consider travel insurance before you travel.
1. Unexpected Events Can Happen To Anyone
It's easy to think "it won't happen to me", but the reality is, travel doesn't always go to plan. Unexpected events can happen to anyone at any time.
Sometimes, circumstances beyond your control mean you need to cancel your trip before you leave or return home earlier than planned.
A serious illness, injury or death involving you, a travelling companion or a close family member could leave you facing the cost of unused flights, accommodation and other prepaid arrangements.
Depending on your policy and circumstances, travel insurance can help cover eligible cancellation or rearrangement costs, helping reduce the financial impact of an unexpected change to your travel plans.
2. Overseas Medical Treatment Can Be Expensive
Falling ill or getting injured overseas can be stressful enough without having to worry about how you'll pay for medical treatment.
Depending on where you are travelling, the cost of hospital treatment, medical evacuation or returning home for further care can be significant.
For example:
- Daily hospitalisation costs in Southeast Asia can exceed $800 per day.
- Repatriation of remains from Europe can cost more than $10,000.
- Medical evacuation (air ambulance) from Bali to Australia can range from $40,000 to $140,000.
- Medical evacuations from the United States average between $75,000 to $95,000, and may cost significantly more, upto $250,000 depending upon the level of care and equipment required.
Figures sourced from multiple sources: Smartraveller, TTR Weekly, First Assistance, ETurboNews
Getting sick or injured overseas can be stressful enough without worrying about how you'll pay for medical treatment. Travel insurance with appropriate medical cover can help protect you against medical and emergency expenses and provide access to assistance when you need it.
Always check the policy's limits, exclusions and conditions, particularly if you have pre-existing medical conditions or plan to participate in higher-risk activities.
3.Your Luggage and Personal Belongings Can Be Damanged or Go Missing
Lost, delayed, stolen or damaged belongings can quickly turn a holiday into a hassle.
If your luggage doesn't arrive with you, or an essential item such as your phone, camera or laptop is lost or stolen, replacing it while you're travelling can be expensive and inconvenient.
Depending on the policy, travel insurance may provide cover for eligible lost, stolen or damaged luggage and personal belongings. However, cover limits, item limits, excesses and exclusions can vary significantly between policies.
When comparing travel insurance, check the limits for the belongings you're taking with you and whether high-value items need to be specified separately.
4. You May Need It To Enter Your Destination
Travel insurance isn't always optional. A growing number of countries have introduced compulsory travel insurance for some visitors. This can include proof of medical or emergency cover as part of the visa or entry process. Requirements can vary by country and may change over time, so it's important to check the latest entry requirements for your destination before you travel.
5. Travel Insurance Can Provide Peace of Mind
Perhaps the biggest reason to buy travel insurance is the reassurance of knowing you have support if something unexpected happens.
Travel insurance isn't only about covering unexpected expenses. Most policies provide you with access to 24/7 emergency assistance and support when you're dealing with a difficult situation far from home.
Having the right cover can give you greater confidence that you'll have financial protection and support if something goes wrong. That means you can spend less time worrying about "what if?" and more time enjoying your trip.
Compare Travel Insurance Before You Buy
Before you travel, take the time to compare policies and choose cover that suits your destination, planned activities and individual circumstances.
The cheapest policy isn't necessarily the best policy for your trip. When comparing travel insurance, consider the level of cover as well as the premium. Think about:
- Your destination: Medical costs and entry requirements can vary between countries.
- Your activities: Check whether your planned activities are covered and whether any exclusions apply.
- Medical cover: Compare medical expense limits, evacuation cover and relevant exclusions.
- Cancellation cover: Consider how much you've prepaid for flights, accommodation and activities.
- Luggage and belongings: Check item limits and whether valuable items require additional cover.
- Excess: Understand how much you'll need to pay towards an eligible claim.
- Existing conditions: Check whether your circumstances are covered and whether you need to meet additional conditions.
- Policy exclusions: Make sure you understand situations where cover may not apply.
Importantly, read the Product Disclosure Statement (PDS) and policy wording before purchasing. These documents explain the cover, limits, exclusions, conditions and other important terms that apply to the policy.
Whilst everyone loves a bargain, the right travel insurance is the one that provides suitable cover for your destination, plans and circumstances; not simply the policy with the lowest price.
