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What’s included, what isn’t and traps travellers fall into.
Policy gaps, dense fine print and even unexpected conflict zones can make travel insurance difficult to navigate.
Explore breaks down where the gaps can lie, and the key exclusions travellers need to understand before they buy.
CHOICE insurance expert Jodi Bird told Explore the main reason to get travel insurance for overseas trips is medical cover.
“Your Medicare or private health insurance won’t cover you overseas – that’s included in all travel insurance policies,” he said.
Treatment costs overseas can run into the tens of thousands, particularly in countries like the United States.
There is a catch however.
Pre-existing medical conditions usually need to be declared.
“This is something people get tripped up on,” Mr Bird said. “You can often find a policy that covers pre-existing conditions, but you need to declare them and sometimes pay an extra fee.”
Comprehensive policies typically go further than medical fees.
“A comprehensive travel insurance policy will usually include cancellation, additional emergency expenses and baggage items that are lost or stolen,” Mr Bird said.
But baggage claims can get tricky too.
“For example, if you leave your carry-on luggage on a chair in a public place like an airport, an insurer might say that was unattended – and not cover it if it’s stolen,” Mr Bird said.
Activities such as riding mopeds overseas can also void coverage if conditions aren’t met.
“If you don’t have a motorcycle license in Australia, you might find yourself excluded for cover overseas,” he said. “Some policies allow mopeds up to a certain engine size, but you need to check.”
Pandemics, once widely covered during Covid-19, are now commonly excluded.
“There’s a lot less travel insurance that covers pandemics now,” Mr Bird said. “You don’t know when the next one will come, so it’s something to be aware of.”
Some other common exclusions can surprise travellers.
War is one of the most significant.
“That means you won’t be covered for claims that are a direct result of war,” Mr Bird said.
This can extend beyond obvious conflict zones. For example, if you are transiting through the Middle East and an airport is attacked, injuries or lost belongings will not be covered.
“These exclusions are fairly standard across policies,” he said. “The key is not to assume you’re covered – it’s about understanding what you will and won’t be covered for.”
Natural disasters are covered more often than not.
The death or serious illness of a close relative is generally covered, though with important caveats.
NSW Business School Associate Professor of Risk and Actuarial Studies Fei Huang said insurers have their own definitions of “relative,” cover may depend on the relative’s age, and in many policies, the relative must live in Australia.
If your family member lives overseas, you may not be covered to cancel or travel to them.
Mr Huang said policy gaps are where travellers are most exposed.
“Insurers exclude many activities from standard policies, such as cruising or skiing, though these can often be added on,” she said.
“There are also strict sub-limits on valuable items. If you’re travelling with an expensive camera or laptop, the default cover may fall well short.
“Terrorism is commonly excluded from cancellation expenses.
“Travel provider insolvency, meaning your airline or travel agent going broke, is commonly excluded. And cancellations or delays caused by the transport provider’s own fault are frequently excluded too.”
Mental health is another grey area, with some insurers excluding claims related to conditions such as anxiety or depression.
Prof Huang said preparation is key: understand your risks, buy cover as soon as you book, read the product disclosure statement, declare all relevant information and choose a policy based on suitability – not just price.
Ultimately, travel insurance should be viewed as essential for overseas trips.
“You can’t rely on the Australian Government to step in – they expect you to have insurance and look after yourself,” said Mr Bird.
For domestic travel, the need is less clear-cut.
“Travel insurance isn’t essential within Australia, as medical costs are generally covered by Medicare or private health insurance,” he said.
However, it may still be worthwhile for high-value trips, remote travel, car hire or travelling with expensive equipment.
Carla Mascarenhas is a journalist with Explore Travel and The Senior. She specialises in deep issues affecting Gen X and beyond, and the latest in travel news. Contact her on carla.mascarenhas@austcommunitymedia.com.au
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