If you are planning to travel it would be unwise to holiday domestically without travel insurance in place. If you are travelling overseas then travel insurance is a must-have item to pack in your bag, alongside your passport. It may seem like an annoying expense but not having it – and having something go wrong – could be financially devastating to say the least. So what can you expect to pay?
What will travel insurance cost me?
Say you were travelling alone to New Zealand for two weeks hiking. Basic cover starts from around $90 while premium cover can cost between $120 to $160 dollars. Or, if you were going to the United States for four weeks, you can expect to pay around $220. A three-month trip to Europe could cost up to $360. Two months back-packing in Vietnam can cost from $250 to $300.
Travel zones affect policy prices
Generally speaking, the most expensive place to travel to – by insurance standards – is the United States. This is because the medical costs over there are exorbitant and there is no reciprocal health agreement between the Australian and USA Governments. It is also because people in the States are a very litigious and this increases the risk for insurers – and puts prices up for everyone.
The travel insurance zones can be roughly outlined as follows: Pacific nations, Asian countries, the United States and Europe/UK. If you opt for extras or plan to take part in “dangerous activities” (such as skiing, snowboarding or diving) then you will need to negotiate additional cover. This will, of course, cost you more.
Go prepared
One other thing – rank your travel insurance documents right up there with your passport, driver’s license, copies of your travellers’ cheques and purchase slip, and any medical certificates. Make sure you have copies of each of these important documents and also leave a set behind with a family member of close friend. If you lose them that way you will still be able to get access to them if and when it becomes necessary – and you will be able to easily prove your level of cover to your insurer and secure help faster, should it become necessary.