The latest research from the Department of Foreign Affairs and Trade’s Smartraveller and Insurance Council of Australia shows Australians’ common misunderstandings when it comes to travel insurance.
Positively, the survey found 87% of travellers purchased travel insurance for their last overseas trip, but 93% of Australians were either unaware or unsure of at least one common travel insurance exclusion.
Travel insurance is as essential as a passport. It can provide valuable financial protection in an unexpected event, particularly when it comes to the very high costs of medical evacuation or being hospitalised overseas.
The fine print
Over half of those surveyed (55%) felt frustrated, having difficulty understanding their policies. But it’s important to read the Product Disclosure Statement (PDS) in detail.
Fewer than half of those surveyed knew that travel insurance policies vary in alcohol coverage. And 25% of travellers knowingly drinking more alcohol than their insurance policy limit.
Two in 5 didn't know that leaving luggage unattended or riding a motorcycle without a license is not covered in their policy.
What you're covered for depends on the type of policy you get. But you usually won't be covered if something goes wrong while you are:
- breaking the law. For example, not wearing a helmet on a moped.
- under the influence of drug or excessive alcohol during any activity
- Policies vary on blood alcohol content – check your coverage in your policy and with your insurer.
- doing an excluded activity. For example, if you broke your leg when your cover expressly excludes skiing off-piste or trekking above a certain altitude.
- in a 'do not travel' destination.
Smartraveller can help
We recommend all Australians take out comprehensive travel and medical insurance.
Ensure it covers the destinations you plan to visit, any planned activities, and pre-existing conditions or current medical treatments.
The CHOICE travel insurance buying guide helps you make sense of the fine print.
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