Long-term travel insurance

Long-term travel insurance (sometimes known as long-stay travel insurance) is a travel insurance policy that covers prolonged domestic or international trips. Depending on your insurer and your policy, they may cover you for 6 months, 12 months or even longer.

Your travel insurance cover is designed to financially protect you while travelling if something unexpected were to happen. For instance, your policy can cover you if you were hospitalised overseas or someone stole your luggage or credit cards. The amount your insurer reimburses you will depend on your policy’s cover limits.

No matter your trip’s duration, the unexpected can disrupt even the best-laid plans. From severe weather and lost luggage to injury and illness, those unfortunate ‘surprises’ can quickly burn a hole through your holiday savings.

You could argue that these risks grow the longer you’re travelling. As such, it’s crucial you explore different travel insurance options and take out a competitive policy that covers your trip from beginning to end.

Here are some of the top reasons why you should consider a comprehensive travel insurance policy:

Cover for illness and injury

Travelling overseas without travel insurance means you’d need to cover your own medical costs. Footing the bill could be financially crippling in some countries (like the USA), where healthcare costs are typically quite excessive. Your travel insurance policy can also cover you if repatriation or medical evacuation back to Australia is necessary after a medical emergency.

You may travel to a country with a Reciprocal Health Care Agreement with Australia. This means that you may be able to access a level of care for free or for a subsidised cost. However, remember that this agreement doesn’t always cover all medical expenses and is only available in 11 countries.¹

If you’re travelling long-term domestically, your policy won’t include medical cover. In Australia, we’re fortunate to be able to rely on the public and private healthcare systems, so your domestic travel policy won’t cover medical expenses.

Cover for adventure sports and activities

Many travel insurance policies won’t automatically cover adventure activities and sports (like bungee jumping, scuba diving, hiking and more). However, many insurers let you add cover for these activities at an extra cost. Keep in mind if you‘re heading to the snow for skiing or snowboarding, these activities usually have their own winter sports cover.

Cover for theft and lost belongings

Whether you’re temporarily moving to Thailand for work or spending your gap year backpacking across Europe, travel insurance may cover your belongings if they’re lost or stolen.

Each policy comes with different cover limits for your luggage and belongings, so it’s important you choose a level of cover that adequately protects your gear. If you’re taking valuables with you, you may consider taking out extra baggage cover to increase your cover limit.

Remember, insurers won’t cover lost, stolen or damaged items you left unattended in public.

Cover for trip cancellations and travel delays

You can never be sure that your flight will leave or arrive on time. And the more you travel, the more likely you’ll run into delays at some point.

If a delayed or cancelled flight means you miss out on an activity (e.g. a wedding, pre-paid concert, sporting event, cruise departure or pre-paid tour), your travel insurance may cover the cost of alternative transport to help you get to your planned event. Keep in mind that policy limits will apply.

Cover for rental car excess

If you choose to hire a car and are involved in an accident, travel cover may look after your rental car excess. Rental companies can charge thousands of dollars in excess to cover damages to the vehicle, so it can be well worth taking out cover that includes this option.

Travel insurers impose standard exclusions on their policies. Below are some situations where insurers typically won’t provide cover:

• You didn’t abide by local laws
• Travel to a country or region with an active travel ban
• Alcohol and drug-related incidents
• Pre-existing medical conditions in certain circumstances (e.g. you didn’t disclose your condition and get special cover for it)
• Incidents that happen after your policy’s expiration date (your policy documents will outline how long you’re covered for)
• Travel where you don’t plan on returning to Australia
• Returning home before the end of your trip; if you return home early, your insurer may suspend your cover until your trip recommences.

To understand exactly what’s included and excluded in your policy, check the policy wording of the PDS before purchasing travel insurance.

Everyone will pay a different price for long-term travel insurance. This is because your travel insurance policy’s premium (the amount you pay for your cover) will vary depending on:

• How long you’re travelling
• How many people are covered by the policy
• Where you’re travelling
• The activities on your itinerary

Some insurers will extend your policy beyond its end date if a covered event (like illness or injury) delays your return home. This cover should extend until you return home. However, be sure to check with your specific insurer and policy, as terms and conditions differ between insurance providers.

However, if you want to extend your trip, you may need to take out a new policy to cover your travels. Otherwise, some insurers may allow you to extend your policy for an extra cost. Keep in mind that some insurers may place a cap on the length of cover they may provide.

Yes, you can purchase cover while you’re already overseas. This is particularly helpful if you decide to take a detour to another country that isn’t on your current policy, or if you simply forgot to organise a policy before you left.

Most insurers will delay the start of cover for 48-72 hours after the date or time of your purchase, so it’s best to purchase your travel insurance in advance.

Travel insurance with emergency medical assistance will typically cover your emergency evacuation back to your home in Australia. If you find yourself in any serious situations, you should contact the local authorities and your insurer for 24/7 emergency assistance.

If you fall pregnant while you’re overseas, your insurer may cover you for up to a certain number of weeks of your pregnancy, depending on your insurer and whether you’re having a single or multiple pregnancy.

However, insurers typically won’t cover antenatal care, childbirth or newborn care. If you fall pregnant while overseas, ensure you contact your insurer for their advice.