If you’re leaving Australia, travel insurance is just as essential as a passport.
Holidays don’t always go as planned.
Medical expenses are the number one reason to get insurance, but sometimes other things can go wrong, such as trip cancellations, delays, lost luggage or even the big stuff like natural disasters and pandemics. If you end up out of pocket because of these things, insurance can make up for that.
The Australian Government won’t pay your medical bills.
In an emergency, the Australian Government can only help so much. The Consular Services Charter describes what the government can and can’t do to help Australians overseas.
If you end up injured or sick while overseas, you’ll be footing the hospital bill and the cost of flying home. If you’re really unlucky, that could cost you or your family hundreds of thousands of dollars.
“In a personal medical emergency, the majority (70%) of travellers expect one or more types of assistance the Government may not be able to provide such as coordinate and pay for an evacuation or medical treatment.”
Some countries won’t let you in if you don’t have insurance.
Singapore and the United Arab Emirates both require you to have travel insurance, not to mention all 26 European countries in the Schengen Area if you’re applying for a visa to visit. Read the Smartraveller travel advice for information about your destination.
Reciprocal healthcare
Australia has reciprocal healthcare agreements with several countries: Belgium, Finland, Italy, Malta, the Netherlands, New Zealand, Norway, the Republic of Ireland, Slovenia, Sweden and the United Kingdom. If you have Medicare, you can get subsidised treatment for essential services only in these countries, which often leads people to ask whether they still need travel insurance.
The answer is yes, for the following reasons.
- You’re usually only covered for urgent care that can’t wait until you get home.
- If you’re very ill, travel insurance can pay for a medical escort to bring you home to Australia.
- You still may have to pay fees for treatment and medication. For example, in New Zealand reciprocal health care doesn’t cover you for free or subsidised care by a general practitioner or ambulance.
- Travel insurance can cover you for cancellations, delays, stolen items and more.
Remember to take your Medicare card with you. You’ll need it, along with your passport, to prove you’re eligible for reciprocal health care. For more information, visit servicesaustralia.gov.au.
Case study
Marco* had breathing difficulties on his way home from Europe, causing his flight to be diverted to the UAE. Hospitals in the UAE won’t admit you unless you have insurance or can pay an upfront fee. Marco’s family had to pay thousands of dollars for his treatment.
*To protect privacy we have changed names and some details
Do you need domestic travel insurance?
Most of us already have medical cover at home, be it Medicare or private health insurance or both. But there are still a few key reasons to consider domestic travel insurance.
- Cancellation: If you’ve spent a lot on your holiday, then it’s not too much extra to buy travel insurance in case of the unforeseen.
- Baggage cover: If you’re travelling with valuables, think about whether you want them covered for theft, loss or damage.
- Car hire excess: You can save money using travel insurance to cover your collision damage excess, rather than paying the car hire company’s extra charge.
Does international travel insurance cover pandemics?
Many travel insurers offer limited cover for pandemics, but the available cover varies quite a lot. Most, but not all, policies cover medical costs for a pandemic disease. But these policies might not cover you to cancel your trip because of a pandemic.
If you’re planning to go on a cruise, be extra careful. Some travel insurers may not offer COVID-19 cover for multi-night cruises or they may restrict the cover provided on cruises.
Also, don’t rely on the travel insurance on your credit card unless you check it closely – it may not cover claims related to COVID-19 or pandemics more generally.
Safeguard your travel plans
The COVID-19 pandemic showed that travel plans can change for reasons entirely outside your control. What should you do if your travel plans are interrupted at short notice? Travel insurance may not protect you from government border closures, general lockdowns or quarantine requirements in your destination country. So the key is to understand what travel providers like airlines and cruise ships offer if things change.
- Check the rules for travelling to your destination. For example, are there any entry requirements? What are the vaccination requirements? And what type of travel insurance do you need?
- Read the terms and conditions of your airline, accommodation and travel tours before you book. Will they refund you if you can’t travel due to pandemics such as COVID-19? If they only offer a reschedule or a credit, will you be in a position to redeem the credit in future?
- You can book flexible tickets for flights but they can be very expensive.
- If you book through a travel agent or booking site, what are their terms and conditions? Will they refund you or provide a credit? Are there cancellation fees?
- If you pay by credit or debit card (and you selected ‘credit’ when you paid), you may have access to credit card chargebacks if something goes wrong.
- Keep on top of the latest travel advice and requirements at smartraveller.gov.au. Travel restrictions can change at short notice.
- If you do have to cancel, your travel insurer will ask you to claim back what you can from travel providers first. Read the CHOICE advice on how to get your money back on travel cancellations and ask your travel insurer if you can get a refund or partial refund of your travel insurance premium.