Travel is a great way to gain a new perspective, escape the ho-hum of everyday life and develop a better understanding of ourselves. While no one plans for things to go wrong while on holiday, the fact of the matter is, they sometimes do. Whether it’s a big overseas honeymoon or a long weekend getaway with friends, being prepared and making sure you're covered for scenarios like accidents, theft or cancelled trips is an important part of making sure your trip is as relaxing and care-free as possible.
First, a word on travel insurance and COVID-19
If you’re looking to purchase travel insurance to lower the risk of COVID-19 or a COVID-19 related event ruining your trip (either domestically or internationally), you are unlikely to find a policy that will cover you. The pandemic is now a “known event” which means insurance companies are unlikely to validate claims that cover you for COVID-19 or travel bans related to the global pandemic.
But don’t stop reading! There are many other events that can ruin your holiday plans, the recent floods in Northern NSW are proof that travel insurance is still an important consideration for those exploring domestic and international holiday destinations.
Do I need travel insurance?
The short answer is, yes. Travel insurance is really important especially if you’re travelling internationally.
The COVID-19 pandemic has placed a halt on most international travel, but as restrictions lift (as they have most recently between Australia and New Zealand) and travel becomes normal again, holidayers will need to be more prepared for their travel arrangements not to go to plan.
While travel insurance generally covers your belongings, any potential legal costs and natural disasters, the most popular reason people buy travel insurance is to avoid expensive international medical costs. Overseas medical bills can be extremely expensive, especially in countries that don’t have Medicare like we do in Australia. And if you need emergency transport back to Australia you could be looking at a bill of over $100,000 without insurance! If you want to enjoy your holiday stress-free, you should definitely be opting for travel insurance.
How much does travel insurance cost?
The amount you pay for travel insurance depends on a range of factors personal to you. The duration of your trip, where you are travelling to, any pre-existing medical conditions, and how expensive your luggage is all factor into the price you’ll end up paying to cover your trip.
Most insurance providers have a basic,mid-tier and premium level of coverage, which is helpful to give you a rough idea of how much you can expect to pay at each level of coverage. Companies like CompareClub are conveniently helpful in assisting you to assess the benefits of different providers against the costs to make sure you chose the insurance option that is right for you.
What to look out for when buying travel insurance?
Travel insurance can be tricky to understand and if you don’t spend time wading through the fine print you could think you are covered for something you're not. Here are three things to make sure you're across before you buy.
- Get the duration of your trip correct: Seems pretty simple but sometimes this can be a mistake that costs thousands of dollars. Make sure you put the date you leave for your destination, not the day you get to the destination. Most insurance claims happen on the way to or from your holiday destination, so it’s important to make sure you're covered during this time!
- Make sure you can afford the excess: People often think that if they get insurance then they won’t be out of pocket if something goes wrong, but this isn't always the case. Like other insurance products, an excess applies to any travel insurance claims you might make. If you opt for a smaller excess your policy price will be higher and vice versa. However you decide to balance the price of the policy and the excess, make sure you are able to cover the cost of the excess in the event that something does go wrong.
- Buy your policy early: Buying your travel insurance as early as you can means you are more likely to be covered if you need to cancel your trip or something goes wrong prior to your departure.
Travel insurance is an essential part of making your trip fun and carefree. Cashrewards members are able to receive cashback on policies from the biggest insurance brands including CoverMore and TID. Visit Cashrewards to see how you can save not just on travel insurance but also on accommodation, flights and experiences for your next holiday.