We all get excited by the thought of travelling but it is important to take care of some very practical responsibilities first. Insurance is one of those things that may be overlooked until the last minute… you might be able to skimp on domestic insurance but if you are going overseas don’t leave home without it.
Domestic travel insurance
One of the primary reasons to take out travel insurance is to cover you for medical expenses should you experience a misadventure. As an Australian citizen you can access healthcare in every state so travel insurance is less of a priority for many domestic travellers. That said, though medical expenses are not the biggy they could be in other countries, the distress, inconvenience and expense of lost luggage, missed flights (or even plane crashes) and other such travel hassles can be minimised by domestic travel insurance. It will also provide you with peace of mind and, for more frequent domestic travellers – who’s chances of misadventure are higher, this can be a wise pathway to pursue.
International travel insurance
If travel insurance is an “optional extra” in your mind for domestic trips, then be sure you don’t compromise when it comes to international travel. Travel insurance is absolutely essential for some destinations, often at the behest of Australian governments or foreign governments. Why? Well, illness or accident in the United States, for example, could send you bankrupt. (A single night in hospital can cost up to USD$10,000 – before you’ve been charged single cent for doctors’ bills, medication and any surgical procedure you may need). Here are some of the other reasons why cover is essential when travelling to the United States:
- It is a long distance that requires stopovers. The more stops you have the higher the risk of issues with luggage, delays and other unforseen events.
- Since the September 11 attacks there have been tighter security measures put in place in the U.S. Should evacuation be necessary it can prove costly.
- America is now perceived as a high risk travel destination as it is often on a heightened terror alert. (China, Indonesia, Hong Kong and Japan are some other countries that are considered “high risk”). Insurance premiums are often higher if travelling to high risk countries.
Other countries for which comprehensive cover is recommended include European, Asian and African countries, amongst others. In poorer countries though the costs of healthcare are less there are fewer medical facilities available. If you get sick you may need to be flown to another country to receive an appropriate level of care. In Nepal, for example, there are many rabid dogs but to be treated for rabies you must be flown to Bangkok in Thailand. (A bite from a rabid dog can kill you within days – as there is no cure for rabies you must be vaccinated before you develop symptoms or death is certain).
Travel insurance: what it covers
Depending on the policy selected, you can expect your travel policy to cover:
- cancellation fees and lost deposits (often conditional) in the event that you are forced to cancel your travel arrangements
- loss of luggage and personal effects, such as computers, cameras and video recorders
- damage to luggage
- damage to personal effects
- a rental vehicle if you hire one
- medical and hospital expenses if you get sick whilst travelling
- a return flight to Australia if you get ill on your travels (and sometimes in the event of the death of a family member)
- various levels of liability and legal expenses
- additional accommodation
Many policies will not return lost fees and deposits if you cancel your trip due to epidemic, pandemic, terrorist attack, political instability or natural disaster.
In addition to these basics, there are always optional extras available or, for a higher premium, more extensive cover for liability, medical, evacuation, lost luggage, delays, etc. Examples of extras include: coverage in case of a terrorist attack, rental vehicle excess, compassionate flights, bird ‘flu, SARS, emergency evacuation, accidental death, natural disaster, pet coverage (if the pet is going along).
Your travel agent will be able to advise you and may offer a good-value policy but you are not obligated to buy from them and may prefer to shop around for a better deal.