Travel Insurance Yes Or No?

Travel Insurance Yes Or No?

Travel insurance yes or no? Travel Insurance Yes Or No?That is the question! Aussies love to travel and we often go abroad without any travel insurance. In fact, only 30% of Australians take out travel insurance which is surprising considering that we have car insurance, house insurance and health insurance. Often when we’re traveling we tend to be a little carefree and lend ourselves to greater risk. Travel insurance is not a legal requirement but a personal choice and acts as a financial safety net because if things go wrong in another country it can get very expensive.

Ozzies Abroad takes a look at exactly what travel insurance covers and if its worth taking.

What You Need To Know

Let’s keep it simple!

Comprehensive or full cover travel insurance will cover most of your concerns and includes:

Travel Insurance Yes Or No?

  • Trip Cancellation
  • Flight Delay or Cancellation
  • Baggage Loss or Damage
  • Financial Default coverage
  • 24 Hour Assistance
  • Medical Coverage

Trip Cancellation: This means reimbursement on non-refundable trip payments and deposits. This is in the event of you canceling your trip and also due to a non traveling family member. Also, just simply not being able to take time off from work is covered. This can include costs incurred before trip such as non-refundable event tickets, hotel stays and any interruptions during the trip that force you to come home early. If an airline cancels your flight then the airline may reimburse you with another ticket but they will not cover your financial loss of missed tours, hotel bookings etc.

Travel Insurance Yes Or No?

Flight Delay/Cancellations: Contrary to popular belief airlines aren’t legally obliged to reimburse your airline ticket in the event of delays. Financial loss from delays and flight cancellations are however covered by your travel insurance. Delays include hijacking, natural disaster, unannounced strikes, quarantine, lost/stolen passport/money/travel documents as well as a traffic incident en route to the airport.

Baggage Loss or Damage: If your baggage was stolen during your travels, lost or delayed by the airline you can claim reimbursement to replace your baggage. You will need to have supporting documentation from the airline and in the event of stolen you will require a police report.

Financial Default Coverage: This means that you are covered if the airline, cruise company, tour operator goes out of business after you booked and paid for their services. The company can’t be in bankruptcy at the time you purchased the insurance coverage.

24 Hour Assistance: Anything can happen at anytime and not knowing who to speak to can add to the stress. When something happens with regard to a medical situation then having support on the phone can aleviate any financial concerns you have. They can also guide you in what you need to do in order to have a successful claim.

Medical Coverage: Your health plan may cover some emergencies outside of Australia but don’t rely on medicare or the Australian government. That accident that you had in Thailand may cost you thousands especially if injuries and hospitalization is involved.

Basically, travel insurance covers unexpected emergencies only. If you have a pre-existing condition that forces you to cancel your trip that you will be covered for trip cancellation.

Travel insurance is usually sold in packages with different variations on the above concerns. Coverage limit varies between plans and you can tailor insurance to suit your needs. Some credit cards offer travel insurance but only if you booked trip using the card and usually only lost or stolen items are covered at a low limit. Other variations concern the activities that you will be doing because lying on the beach is less dangerous that skydiving.

Do We Need It Or Not?

Basically, it depends. I wouldn’t bother for a quick trip away with no chance of cancellations but then again who knows what could happen? However, if I was planning a holiday in advance and I saved money on my hotel bookings by forfeiting ability to cancel and have a lot of luggage and an itinerary then I would get it. Also, if I was planning on doing some adventurous activities I would pay for insurance so I’m not stung with hospital bills in another country. It’s a gamble in any case and you need to consider your risks. The cost of insurance is usually about 5% of total cost of holiday but can vary depending on your age.

Quick fact

Travel Insurance is strongly recommended by the Department of Foreign Affairs and Trade for all overseas travel. They say “If you can’t afford travel insurance you can’t afford to travel”

Travel Insurance Yes Or No?

There You Have It

Ozzies Abroad has researched insurance options and for Australians outside of Australia the best option is World Nomads. All other travel companies won’t insure you once you have already left Australia. World Nomads have good feedback, insure all sports, activities, ages and are competitively priced. So we suggest you have some piece of mind during your travels and pack some insurance.

See ya!

 

 

6 Replies to “Travel Insurance Yes Or No?”

  1. As someone who travels on a regular basis, I do not opt for travel insurance. It feels like too much of luxury item. Although, you do raise very good points, especially about the risk of hospital expenses in another country. It could run up quite the bill.

    I do have a question though. As an adventurous person, I travel to dangerous countries. When considering travel insurance, what is the primary concern for you? I look forward to hearing your answer. Thank you for sharing and I hope you have a great day!

    1. Hi Alex, Thanks for your message. For me personally, because I travel light, the primary concern is medical. The reason is that if you get sick or injure yourself then the bills can be shocking. I friend of mine broke his leg in Thailand and the hospital bill was twice his holiday expense. It’s a sure way to ruin a holiday.  

  2. Great article on travel insurance. A well covered article which has made aware to have travel insurance while I’ll be traveling. Specially, travel insurance is a must for adventure seeker travellers. Who knows what’ll happen while traveling.
    Some travelers might think and say that travel insurance is luxury. No man, it’s not luxury. It’s necessity.
    So, I would like to hear from you on how to get a travel insurance online.
    Thank you man for your great informative post.

    1. Hi Himbru. Thanks for your comment. I agree that travel insurance is not a luxury. Problem is people leave it too late while they are rushing around getting ready for their holiday. Most insurance companies won’t insure you once you jump on that plane. Try World Nomads because they will still insure after you have left your country. So it’s never too late to be safe,

  3. I travel all the time and I have not really considered travel insurance. However, when I think fo travel insurance I didn’t think about it covering all the things you just mentioned.

    The items in this article such as cancellations and lost baggages are good things to consider getting insurance for, but it had just never crossed my mind that the insurance would cover.

    1. Many people don’t consider the advantages and peace of mind from obtaining travel insurance. Thanks for your comment.

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