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Choosing the right amount of travel insurance
The most important thing to consider, probably as with any trip, is the amount of protection you need (for each area of the policy), in terms of financial value. Luggage (and personal effects) is a particularly tricky element, since it will usually be offered as a lump sum, meaning that individual items of significant value will not be given specific treatment. You will probably need to enquire about any items of high value on an item by item basis (or even insure them separately); as part of a general policy, high-value individual items will no doubt boost premium price greatly. Insurance providers will probably offer between AU$2500 and $5000 for luggage and personal possessions in total. It’s a good idea to ask your insurance broker about individual item limits, because sometimes insurance companies will not wish to cover more than a few hundred dollars per item, meaning that laptops, cameras and other electronic devices would be insufficiently protected.
The type of domestic travel insurance you require will largely depend on the type of holiday and the party members. Whereas basic cancellation cover will usually cost from around $25 per person, full cover can cost many times that amount (sometimes $150 for a couple or family for a month’s cover). However, comprehensive cover will almost certainly offer unlimited cancellation cover (with possible conditions), rather than a modest upper limit, as with a budget plan (sometimes only up to $1000). Domestic travel insurance providers may include rental vehicle excess (up to $3000 in some cases) to reduce costs, which is especially useful for road trip holidays where a hire car is essential. If you have more people to insure, and you have expensive personal belongings (laptop, golf clubs, sports equipment, etc) or wish to hire a vehicle for a long period of time, comprehensive cover may justify the premium cost, and offer first-class protection, with a family or group deal.
Domestic travel insurance vs international travel insurance
It may surprise travelers to learn that domestic travel insurance doesn’t vary a great deal in price from international travel insurance, regardless of reduced distance covered. A couple may pay between $125 and $175 for a month’s travel within Australia, compared to between roughly $220 and $300 for a month’s worldwide travel. Cancellation cover may be the same in both cases (between $2500 and $7500 in many cases), as might personal liability cover (roughly $2.5 million can be expected), whilst worldwide travel will certainly include higher cover for medical expenses (given the foreign environment and the fact that domestic medical care is a standard requirement all year round) and probably higher protection value for luggage and personal items also. You can expect at least $5 million of cover for medical costs with a worldwide travel plan, with probably $100 to $2000 daily hospital allowance being more reasonably expected for a domestic travel insurance policy. In addition, whereas a maximum of $2500 for luggage may be common with some domestic travel insurance plans, up to $5000 (or even $10000) is not uncommon for international travel insurance policies.
With the Internet allowing for much easier gathering of quotes and prices, it’s not difficult to quickly get a feel for policies on offer. Perhaps it is easier to understand the price of insurance for holidays on the Australian continent when considering not only the distance across the country, but also the amount of activities that, whilst exciting, carry an element of risk, such as reef diving, snowboarding, skiing, kayaking and even bushwalking. For extra reassurance, it’s not unreasonable to expect your insurance broker to provide a 24-hour emergency assistance contact number, whichever type of insurance you are looking for. Whilst cost of domestic insurance may not seem relative to distance travelled, whenever you travel, home or away, your holiday should be about enjoying yourself and not worrying whether or not your insurance measures up.
