Although you’ve reached the midway point in life, your holiday plans shouldn’t be half thought out. Picking the perfect holiday destination and booking your tickets is only one part of the necessary planning towards enjoying the perfect holiday. Getting appropriate travel insurance cover is another.
You can meticulously plan every detail of your holiday, but there is no way of predicting unforeseen accidents, illnesses and unfortunate events while travelling. However, you can purchase travel insurance to provide you with cover in case something unexpected happens on your holiday.
Although, it’s important to be aware that your level of cover will depend on which travel insurance policy you choose.
A major motivation behind purchasing a travel insurance policy is to be covered while overseas medical expenses. According to the Australian Department of Foreign Affairs and Trade (DFAT), in 2020-2021, the USA was one of the top locations where Australians were hospitalised while travelling overseas.1 The USA is well-known for their steep healthcare costs, with an average three-day hospital stay costing approximately USD$30,000.2
But with an adequate travel insurance policy, you could be protected from paying these costs out of your own pocket.
Having the right travel insurance policy can generally help cover the costs of hospital fees, medical treatment and even repatriation resulting from any medical emergencies or other health-related incidents that happen while you’re travelling. However, it can cover much more than that!
For starters, your belongings taken overseas can be insured for damage, loss or theft, such as:
If any flight cancellations or delays threaten to impact your holiday, comprehensive travel insurance can help with the related expenses. For example, if your flight is delayed due to bad weather and you miss your tour bus, travel insurance may cover the additional travel expenses to ensure you don’t miss your entire tour, or reimburse you for any lost deposits. For long delays, comprehensive travel insurance can even cover appropriate accommodation so you don’t need to sleep in an airport.
It’s important to read and understand the Product Disclosure Statement (PDS) of any policy you’re considering purchasing. Be sure you understand the policy’s inclusions, exclusions, limits and sub-limits, so you can find a policy that suits your desired coverage. The level of cover you decide is right for you may depend on your budget, travel plans and individual circumstances.
If you have a pre-existing medical condition, you will need to declare it to your insurer when applying for a travel insurance policy. Some pre-existing conditions may be automatically covered, while other, more complex conditions are either excluded or judged on a case-by-case basis. If you do not declare your pre-existing medical conditions when taking out a policy, you may not be covered if you need treatment for your condition while overseas.
Travellers can generally opt for a single trip policy or an annual cover policy, which can cover you for every trip you make within 12 months. Some annual cover policies will not only cover international trips, but will also cover domestic trips. However, these policies will always include trip length limits, sometimes called maximum trip lengths, such as 30 consecutive days. Keep an eye out for excluded countries, as most policies will not provide cover for losses incurred in certain countries.
If you’re unsure what suits your holiday best, consider what’s included in each level of cover. For greater insight, our free comparison service allows you to choose the maximum benefit amount for trip cancellation, luggage and rental car excess so that you can tailor your search for a travel insurance policy that suits you.
This cover is great for light travellers who don’t travel far from the hotel. It’s typically the most affordable and includes the most basic features of travel insurance.
However, there are usually limits, conditions and excess payments that vary depending on the insurance provider. Basic policies typically include cover for:
Mid-level cover is great for travellers who are a bit more adventurous.
It has a broader range of cover than basic policies but may still have certain limits, conditions or excess payments. Standard policies can include cover for:
High-level cover suits people who want peace of mind from having comprehensive coverage for a wide variety of unexpected events, including injuries, cancellations and theft.
Coverage will vary between insurers, and there may still be certain conditions, limits and excess payments. Comprehensive cover can generally include:
It may cost more but adding some optional extras to your travel insurance can provide additional coverage, typically for different kinds of trips. Some options available to you can include:
N.B.: The specifics of exactly what’s covered will differ between policies and insurance providers. You can check the PDS for details on a specific policy.
The cost of travel insurance will vary between insurers and is based on a number of factors, including your:
Generally, travel insurance premiums aren’t too much of an expense in the grand scheme of things. Paying these prices will likely be easier on your bank account than paying up-front for hospital fees while overseas, or expenses for recovering lost, damaged or stolen luggage.
Over 50s generally have nothing to worry about when it comes to getting covered, as travel insurers typically cater to anyone in this age bracket. It might just cost more for Australians to get covered the older they get, as they represent a greater risk for insurers (or if they have a particular pre-existing medical condition to cover).
For those over 65, you might find it slightly more difficult to get travel insurance for seniors. It’s common for older travellers to be away from home for longer and take more of their possessions with them, adding to the chance of suffering a loss and impacting the size of an insurance claim.
Taking out cover for your pre-existing medical condition may cost a bit extra, but it can help cover you for most, if not all, medical expenses resulting from your condition.
Although some pre-existing medical conditions can be automatically covered by travel insurance (like diabetes or high blood pressure), more serious conditions like some forms of cancer or mental illnesses may require paying an additional premium for full coverage. Insurers may not provide cover for some severe medical conditions, like terminal illnesses.
It’s important to check with your insurance provider if your condition is covered and apply for a policy with pre-existing condition cover if you need it.
Travel insurance exclusions are typically the same regardless of your age. While specific details and exclusions might differ, most travel insurance won’t cover claims if they involve the following:
There are age limits on travel insurance, though this will differ between travel insurers. For example, some insurers will cover travellers up to the age of 75, while others may provide cover for those in their 80s or even 90s.
If you’re over 50, your age can affect what kinds of travel insurance you may be eligible for. For example, some insurers may not sell annual multi-trip policies if you’re over a certain age, but they can offer single trip cover.
Likewise, optional extras can be limited to customers of a certain age. The exact ages will differ between the types of policy, but insurance providers may not offer winter sports or adventure cover add-ons based on your age.
Read the PDS of any policy before purchasing to understand the full extent of your coverage, and whether the policy suits your travel needs.
Not many travel insurance companies offer cover when you’re already overseas. Of those that do, this cover may come with extra costs, waiting periods and more limits. It’s recommended that you purchase travel insurance right after you book your tickets and well before you pack your bags.
As comprehensive policies include cover for cancellation, you can maximise the value from your travel insurance purchase by buying a policy as soon as you pay any deposits or final payments. Making sure you take out travel insurance as soon as possible can save you a whole lot of money and stress in the long run.
When you go on a cruise, it’s important to remember that once the ship leaves the dock, you’re generally not covered by Medicare or your private health insurance.
This is why getting a travel insurance policy which includes cover for cruising is essential for covering your unexpected medical expenses on board or if you go ashore to explore any international ports or destinations. As cruising can be expensive and cancellation fees can be significant, including the cruise option with your travel insurance policy could save you hundreds or thousands of dollars.
Cruises aren’t automatically covered under most policies. You’ll generally need to take out cruise cover as an optional extra on your policy, which may cost a little extra
Comparing travel insurance quotes can be difficult if you’re not sure exactly what coverage and protection are needed for your holiday.
Our free comparison tool makes it easy to weigh up options available through us. Within minutes, you can compare policies by coverage, optional extras, excess amounts and price. If you see a policy you like, you can purchase it straight away. Simples!
1 Department of Foreign Affairs and Trade, Australian Government. Consular State of Play 2020-21. Accessed September 2022.
2 HealthCare.gov – USA Government. Protection from high medical costs. Accessed September 2022.
