- Do I really need travel insurance?
- What features should I look for in a travel insurance policy?
- When can I have my claims paid?
- Does my insurance only cover me for the one trip?
- If I develop a medical condition after taking out the insurance, but before I leave Australia, am I covered?
- Is there an age limit on travel insurance?
- Should I obtain police reports or doctors' details for insurance purposes?
- If I decide to return home because I am ill, do I need the insurer's agreement?
- How do I obtain advice from my insurer while I am overseas?
- I was robbed of $300 in local currency. Do I have a claim?
- My golf clubs were lost by the airline, so I had to hire some. Do I have a claim?
- Why do I need coverage against medical treatment?
- What is a pre-existing medical condition?
Travel Tips
- Lost documents
- Your state of health
- If you have to rush home
- What's in your luggage?
- Keep your valuables secure at all times
- Don't trust strangers to look after your gear for you
- Keep receipts for any claimable items that you buy
- Report losses to local police
- You can't claim for cash
- Are you licensed?
<< Back to Frequently Asked Questions
Do I really need travel insurance?
We've all heard the horror stories of people losing their money, passport, sometimes all their luggage, leaving them stranded far from home. Or even worse, being injured or just getting sick in the wrong part of the world.
If you can't afford the insurance, you can't afford the trip. Travel insurance isn't an option when you are travelling overseas. It's an absolute necessity.
What features should I look for in a travel insurance policy?
There is a very wide variety of travel insurance policies available. They all have their good features, and they all apply various restrictions. It's important that you know what you want covered, and understand what your policy actually covers you against.
We've all heard the horror stories of travellers injured in places like the United States or Europe, where a hospital bill for a relatively minor condition can exceed $50,000. In such circumstances, that insurance premium seems like a great investment!
Travel is one of the most hotly contested classes of insurance when it comes to claims. Last year, Insurance Enquiries and Complaints, the insurance industry's dispute resolution system, reported that the vast majority of disputed travel claims revolved around two areas: what the policy was intended to cover and how much goods claimed for really cost.
Check out the available policies very carefully, taking into account where you are going, what you are likely to have with you and what the costs are likely to be if you are injured.
Don't take out the first policy you're offered, without understanding what it contains. And don't leave your travel insurance to the last minute because the choices on offer are quite wide. Most policies offer singles and partnerscover. These policies generally cover children travelling with you.
What you should look for:
Medical and additional expenses
Including cover for the costs of medical, surgical, hospital, ambulance, emergency dental, medical evacuation and additional expenses.
Cancellation
Cover for cancellation charges on prepaid arrangements.
Luggage and personal effects
This covers you for your personal belongings that are taken on the trip or purchased during it. Note that there is usually a limit per item, with an overall limit for electronic equipment like cameras and personal computers.
Travel documents
Cover for travel documents, credit cards or travellers cheques that are lost or stolen. There is usually a limit - either per item or overall - on these.
Personal liability
If you accidentally injure another person or damage their property, this provides you with cover against the possible cost of the damage. In some parts of the world, the liability can be huge.
Return airfare
Some insurers offer to reimburse the cost of your airfare if you suffer an accident or need to return home due to a covered event outside your control.
Travel Delay
Reimburses you for additional meals and accommodation expenses if your journey is delayed for more than a certain number of hours. Delays due to industrial action and - even worse - weather are far more common than you might think.
Emergency luggage
Allows you reimbursement of your purchases for essential items if your luggage is temporarily delayed by the carrier.Additional items that are worth considering:
Accidental death
It won't make you feel any better (how could it?) but a payout to your estate should you be killed on your trip will certainly make things easier for your family. Limits usually apply, ranging from $10,000 to $25,000, depending on the type of policy.
Resumption of journey
If you have to return home early due to the unexpected death of a relative, some insurers will offer you cover for the costs of resuming your overseas trip. Note, however, the word "unexpected".
Out-of-pocket expenses
Provides you with spending money for each day that you are confined in an overseas hospital.
Loss of income
The accident you had while you were overseas may prevent you from working on your return home, so some policies provide a benefit ranging from $5,000 to $25,000.
Domestic pets
Those kennel and cattery fees can accumulate rather quickly if you are caught up overseas by injury or an unforeseen delay.
Rental vehicle insurance excess
Provides cover for the insurance excess on your rental vehicle if it is involved in an accident or stolen. If you're planning to do a lot of driving on your overseas holiday, it can be a very handy cover to have.
Free cover for children
Some insurers offer free coverage for dependents under the age of 21, accompanying the policyholder.
Amateur or action sports
If you're partial to skiing, ice sports, hot-air ballooning, scuba diving, bungee jumping, white-water rafting, parachuting, paragliding and so on, look for a policy that offers specific cover for amateur or action sports. The policy will define exactly what is covered. If your favourite activity isn't on the list, ask your insurer.
When can I have my claims paid?
Usually when you return to Australia, and only then after the insurer is satisfied that all the paperwork is correct. If you plan to be away for a long period, or the loss you've experienced is causing you serious financial troubles, contact the insurer or the emergency assistance helpline to discuss the options.
Does my insurance only cover me for the one trip?
Usually you take out insurance for a period of time. Most insurers offer unlimited trips for the duration of the policy.
If I develop a medical condition after taking out the insurance, but before I leave Australia, am I covered?
With the exception of cancellation policies, your insurance only applies after you begin the trip. Prior to that it's your responsibility to tell your insurer of any changed conditions. Your new medical condition is likely to fall under that.
Is there an age limit on travel insurance?
There's usually an upper age limit. But insurers are aware of the fact that more and more of our older citizens enjoy international travel - and also that many are fitter than travellers half their age. Some budget-priced travel insurance policies place limits on travellers over 50, with cover ceasing at age 65. However, most travel insurers only ask for a Traveller's Appraisal Form, which details the customer's state of health, when they are aged 70 or more.
Should I obtain police reports or doctors' details for insurance purposes?
We know it cuts into your valuable holiday time, but there isn't a lot of point in trying to obtain such vital information once you have returned to Australia. Get the information you need as soon as possible, and store it in a safe place.
If I decide to return home because I am ill, do I need the insurer's agreement?
Yes, whatever the circumstances. If you intend to do something that you will claim for later, you first have to obtain your insurer's agreement
How do I obtain advice from my insurer while I am overseas?
Many insurers provide a phone number you can call from anywhere in the world that will give you advice and assistance. Check your potential insurers to see which ones offer this service, because it can be very useful indeed.
I was robbed of $300 in local currency. Do I have a claim?
Normally you won't be covered for cash. That's why it's better to use traveller's cheques or credit cards.
My golf clubs were lost by the airline, so I had to hire some. Do I have a claim?
Yes. Insurers accept that sporting equipment - particularly skis and golf clubs - are normal holiday equipment for some people. So they will pay you the necessary cost of hiring replacement equipment, usually up to a limit of $150 to $300. Of course, you will have to support your claim with receipts.
Why do I need coverage against medical treatment?
Famous last words. For example, the average hospital bed in the United States is $US2,000 a day. The cost to repatriate you from anywhere in the world is going to be at least $50,000. Contemplate having no travel insurance if you take ill wherever you're planning to travel. What would happen if you were run over in rural Thailand, broke your leg in Africa, or if you where injured in a car accident in the United States.
Travel insurance is essential. Like we said before, if you can't afford the insurance, you can't afford to go.
What is a pre-existing medical condition?
It can be any physical condition, illness or disease that you had in the period before you took out the travel insurance policy. That includes any chronic or ongoing medical condition. But don't worry too much about it. Most insurers will cover you if you have a pre-existing medical condition, but will require you to provide details and may charge a higher premium to cover any higher risk you might pose.
Travel Tips
Lost documents
Think ahead. Leave a photocopy of your passport and tickets with someone at home, and carry another copy in your luggage. That way, if you lose your passport or tickets it's much easier to replace them.
Your state of health
If you have what the insurers call an "existing medical condition", it doesn't mean that you can't get travel insurance. Ask for a Traveller's Appraisal Form, which you must complete and submit to the insurer. Sometimes an additional premium payment will be required.
If you have to rush home
Some insurers will pay for you to resume your holiday if you have to return to Australia because someone close - usually a relative - has become seriously ill. However, if you are aware of any conditions that may cause this to happen, you should tell your insurer when you take out the policy.
What's in your luggage?
Read the luggage section of your policy very carefully. You will find that individual item limits apply and these will be observed by the insurer.
Keep your valuables secure at all times
While you are travelling, keep your valuable items - laptop, cameras, and jewellery - with you. Don't expect your insurer to be happy if you lost your luggage unattended in a public place, or in a motor vehicle overnight.
Mobile phones, cameras, sound systems and computers are highly prized. So don't leave them in a vehicle at any time. Remember that rental cars are normally identified through signs or registration plates, which makes them a hot target for thieves.
Don't trust strangers to look after your gear for you
In one recent case, a claimant tried to convince his insurer - unsuccessfully - that leaving his luggage in a New York taxi while he dashed into a shop was a perfectly reasonable thing to do.
Keep receipts for any claimable items that you buy
Keep receipts separate from the goods you buy while travelling.
Report losses to local police
If you have anything stolen, report it to the local police immediately and get a copy of their report. It's vital when you come to make a claim.
You can't claim for cash
Insurers don't normally compensate you for losing cash. Use your credit cards and travellers cheques whenever possible, and limit the amount of cash you carry.
Are you licensed?
Don't drive a motorcycle overseas unless you have a valid international licence. And while you're at it, wear a helmet, even if local laws don't require it. That's the best form of insurance there is.
<< Back to Frequently Asked Questions
