With school holidays on our doorstep, the Insurance Council of Australia (ICA) is urging travellers to ensure they have adequate travel insurance before venturing overseas this summer.
Having travel insurance is just as important as having a passport when it comes preparing for a holiday to another country.
Millions of people are expected to arrive and depart Australia over the coming months. Travel insurance provides peace of mind knowing you’ll be taken care of should your trip turn to disaster.
found that one in eight Aussies were not covered by travel insurance on their most recent overseas trip, with the vast majority exposed to potential underinsurance.
A few key things to check in your travel insurance policy include:
• Prescription medication. Some countries require you to carry evidence alongside your prescription medication either on your flight or at your destination. In the 2024 survey, 45 per cent of respondents travelled with prescription medication on their last trip.
• Alcohol. Alcohol coverage varies across policies. If you plan on drinking alcohol while overseas, ensure you know what you’re covered for should the worst happen. Our survey found those aged 18-29 years were significantly more likely than average to expose themselves to this risk.
• Lost items. Most policies will cover the replacement of general items, such as your mobile phone, up to a dollar value. However, if you’re travelling with expensive items, it’s important to ensure you’re insured should they be damaged or misplaced. It’s also important to know under what circumstances these items will be covered under your insurance.
• Medical emergencies. If you need medical treatment while overseas, you could be out of pocket thousands of dollars if you don’t have adequate travel insurance. Understand your cover and your risks taking into account the activities you plan on undertaking while you’re away.
• Exclusions. Understand what is and is not included in your policy. Common exclusions relate to motorcycle usage without a license, high-risk activities, pre-existing physical health conditions, losses incurred while under the influence of alcohol and losses incurred due to natural disasters. Our survey found that almost all travellers were unaware or unsure of at least one common travel insurance exclusion.
As with all insurance policies, customers are encouraged to read the product disclosure statement (PDS) in detail to understand inclusions and exclusions in relation to their travels.
Travellers should also seek advice from their travel provider and Smartraveller for up-to-date information.
Quotes attributable to ICA CEO Andrew Hall:
The Christmas holidays are always popular for travel as families venture to see loved ones.
While we can do all we can to prepare for an overseas trip, sometimes the unplanned and unexpected can happen. That’s why having travel insurance is so important.
Travel insurance can only be purchased before you travel, so getting organised before you board your flight will help make your holiday a relaxing one.
We recommend all travellers think about what they will need to be covered for – adventure sports, motor bikes, or cruises, and shop around to find the best travel insurance policy for them and their family.
