Is travel insurance worth it? Given the potential hassle, delays, and difficulty in finding the right scheme, some travellers simply don’t bother. However, a policy can come in extremely handy when a tourist is faced with a crisis abroad. Here’s what to know.
Travel insurance is a necessity. But ignoring it in the excitement to jet off to experience new places, cultures and people can land you in even bigger trouble than you may imagine.
Travelling Without Insurance
Apart from hospitalisation, where you will face eye-watering medical bills, lack the local language, and be left at the mercy of others, you could face other dilemmas, such as having flights cancelled, a lost passport, items stolen, or your luggage being sent to a different location.
Often, travel insurance is the last thing to be packed into the mental suitcase of must-dos before heading for a holiday. ‘Exposed’ comes to mind for those risking travel without cover.
Considering cover?
Before signing up for a policy, run checks, cross-references, and comparisons to ensure it is optimised for your travel needs. Quick points to consider:
Destination: Make sure the policy covers the locations you want to travel to. Some countries or regions may not be covered for various reasons, such as conflict. Even travelling in Europe requires clarity from your insurer, as some nations may not be part of the EU.
Read the Policy: Check the fine print. Claims are denied because most people don’t know what they are covered for. One example is that some policies exclude delays and cancellations if you use budget airlines. While scooters and motorbikes are useful to get around, they, Segways and quad bikes, may not be covered by your policy.
Valuables: Ask travel insurers if they cover items of value stored in suitcases when they go through the airport and are then stolen.
Dangerous Sports: If you intend to indulge in extreme sports, such as scuba diving or skiing, extra travel cover may well be required. Check what the insurance policy covers. Consider general travel cover, then top up only for trips you know will include an extreme activity.
Limits: Understand the limits for your electric items and medical cover. Declare all pre-existing ailments to ensure that insurers don’t walk away if you have to make a claim. Check any excesses you are liable for on any claim you make.
Annual Cover: If you’re a multi-traveller, it might make sense to buy annual cover over single-trip travel cover. Annual multiple-trip coverage can be cheaper and more flexible. Check that includes good general benefits for travel delays, trip cancellations and loss of personal items.
Picture This: List and photograph all your expensive items, including their serial numbers. Back that up by saving on a memory stick so they can be sourced if a claim is due.
Be Secure: Never leave doors or windows unlocked in your hotel, as this is a good excuse for a claim to be rejected. If you are a victim of a crime, get a police report to back up your claim.
Emergencies: Clarify that your insurer has 24/7 support. Most policy providers will give a phone number for emergencies. When death occurs or you need to be flown out because you are seriously ill, check whether your insurer covers for those eventualities. Add your country’s embassy phone number to speed dial, just in case.
Extreme Weather: Travellers are generally advised to take out insurance as early as they can as it is only valid if taken out before a hurricane is named. This is because coverage will only apply if the policy is purchased before the weather event is named or becomes known. For other disasters, the event must be unforeseen or not publicly announced before you buy insurance. Travellers should check their policy to see if non-medical evacuation is included and what situations it covers.
For maximum flexibility, holidaymakers can opt for a ‘Cancel For Any Reason’ (CFAR) policy, which entitles them to compensation even when they choose not to go ahead with a trip that is not sufficiently impacted by weather to trigger standard coverage.
Making A Claim
Play it by the book, don’t be tempted to exaggerate a value and never be vague. Insurers deal with scams daily and will dismiss a claim out of hand if they are not watertight.
Ensure you keep copies of receipts for valuable possessions, such as electronic devices, that need to be replaced if you have to make a claim for missing or stolen items.
When making a claim, never accept the first offer of settlement. If you do not agree with the amount, take it to arbitration within the company, and if you are still not satisfied, take it further.
Rolling The Dice
The latest travel insurance survey from The Insurance Council of Australia revealed that 1 in 7 Aussie travellers are still heading overseas uninsured. People’s reasons included they were travelling somewhere where they knew they would be safe or they were only going for a short break, while 27% thought that it was not good value for money.
Comparison site, Mozo.com.au, said: “What is striking about these answers is how optimistic people are that their holiday plans will go to plan. Maybe they’re focused on ‘good holiday vibes’ rather than what could go wrong. But accidents, unforeseen events and general travel mishaps happen all the time.”
In its list of most expensive travel insurance claims for 2024, travel insurer Southern Cross listed a $187,868 claim from a 44-year-old male who slipped on the ledge of the pool while on holiday and needed an air ambulance back to Australia. According to 1Cover Travel Insurance, even for simple treatment to combat Bali belly, the average claim now costs $1,500.
When it comes to British travellers, research from Go.Compare found that 30% of UK adults live with a medical condition, but only 48% declare it. The rest admit to taking risky shortcuts: one in seven (14%) have never bought travel insurance at all. And, 25% wrongly believe no medical conditions need to be declared when buying travel insurance.
In the U.S., a survey by Upgraded Points of over 2,300 U.S. travellers found that 63% of Americans plan to skip travel insurance for their trips in 2025. Millennials lead the pack in skipping coverage, with 65% going uninsured.
Peace of Mind
Why travel to new locations with the potential for risks you could never have predicted? The saying “For the grace of God go I” won’t help when your bank account is hammered for an unintended hospital stay. Enjoy your vacation, but with the peace of mind that you have essential backup with a travel insurance policy.
Andy Probert is a freelance journalist whose work about global travel news, aviation, business and human-interest features has appeared internationally in print and digital formats.
