It’s no secret that travel insurance isn’t the sexiest topic to discuss when heading overseas. But, we’ve all heard stories about accidents that happen while abroad and you can be sure that fixing them never comes cheaply. This is why travel insurance
, and the corresponding peace of mind, is the most important thing to take on your holiday (apart from your passport of course!).
We’ve taken a look at the statistics provided by Cover-More Insurance
and pulled out what you need to know. This not only covers the top things Aussies claim for on their travel insurance, but details how you can be covered on your next trip abroad.
Top 5 types of claim by number of claims last financial year:
Medical and Dental - 23,501 with an average claim cost of $1,329.51
Cancellation - 17,121 with an average claim cost of $2,297.31
Luggage and Travel Documents - 15,816 with an average claim cost of $494.61
Additional Expenses - 7,969 with an average claim cost of $2,602.94
Rental Vehicle - 1,761 with an average claim cost of $928.75
All travel insurance policies are different and, while it can be a pain to read the product disclosure statement, you’d be a fool not to. Take the extra 5 minutes and understand what you are covered for.
Types of cover vary and incidents covered by insurance can include illness, accidents, lost luggage, travel delays, missed departures or connections, personal money, search and rescue expenses and rental vehicle excess waiver. It’s also important to understand the policy wording for those words that actually have a special meaning - each policy will describe these words in a separate section.
We recommend purchasing travel insurance from the get-go, that was if there is an unforeseen event that is outside your control, it can be covered. At Travel Money Oz
, we can easily help you find the right insurance policy for your holiday with our partner, Cover-More.
The last thing you want to deal with on your holiday is a medical or dental emergency, however these things happen and often when you least expect it.
No one is immune to these sorts of events, which is why it’s so important to always ensure you’re covered in the event of an emergency. Quite often, those medical emergencies can add up to huge bills very quickly. Last year one Cover-More customer claimed just under $500,000 while in hospital, with the next most expensive medical claim coming in at a hefty $270,000 in Italy – imagine how much gelato you could buy with that!
Cancellations and delays
Despite our best efforts, sometimes life gets in the way and holidays have to be put on hold or cancelled. Whether something has happened to you or a family member, or a destination has to be evacuated, these things are out of your control and it pays to make sure you are covered.
Once again, it is important to read your policy guidelines, but quite often you can get cover for cancellations arising from: severe weather or airline industrial action, an accident en route to the terminal, natural disasters and civil unrest and (god forbid) illness, injury or death of you or a close relative.
Another instance where it pays to have travel insurance (as if you’re not already convinced) is when you turn up to your destination, and your luggage has decided to have a quick stopover elsewhere…
Whether your bag is living the life in Thailand, has been picked up by a stranger or is just lost in an airport somewhere, travel insurance takes the stress out of the situation and has you covered.
Lost, stolen and damaged money and items
So you’ve made it to your destination with your luggage in tow, only to find something has been damaged, or worse – stolen. Travel insurance will often come in handy here, with previous claims being made for everything from damaged surfboards to pickpocketed wallets, iPhones and hearing aids.
Theft is one of the most common claims for travellers overseas; however it is important to note that insurance only covers stolen items if they were:
- Under your supervision
- In a locked room or hotel safe
- Out of sight (in the boot of a locked car)
As always, please double check your insurance provider’s product disclosure statement to understand exactly what you are covered for.
Tips to make sure your claim is accepted
One of the most common reasons claims are rejected is that travellers fail to get a police report from a local police station. Another common reason for claims being rejected is travellers failing to provide relevant documentation, such as a proof of purchase for goods.
Here are some quick tips to consider for your next holiday, in case you do need to make a claim:
- Ensure you keep receipts or have card statements as proof of purchase for personal items.
- Declare any pre-existing medical conditions when you initially take out a policy.
- Check to see what adventure activities are and aren’t covered - most rock climbing and canyoning for instance require a specialist policy.
- Many policies require snow/ski cover added as an extra, however it often won’t cover you if you ski outside boundaries, or on runs that are closed or for backcountry skiing.
- Make sure you lodge your claim as soon as you are able to gather all your supporting documents.
- Include all destinations in your cover, even if it’s only a short stopover.
For more information on Travel Insurance, head in store
and speak to one of our experts.
This blog is provided for information only and does not take into consideration your objectives, financial situation or needs. You should consider whether the information and suggestions contained in any blog entry are appropriate for you, having regard to your own objectives, financial situation and needs. While we take reasonable care in providing the blog, we give no warranties or representations that it is complete or accurate, or is appropriate for you. We are not liable for any loss caused, whether due to negligence or otherwise, arising from use of, or reliance on, the information and/or suggestions contained in this blog.
Limits, sub-limits, conditions and exclusions apply. Insurance administered by Cover-More Insurance Services Pty Ltd (ABN 95 003 114 145, AFSL 241713) and issued by Zurich Australian Insurance Limited ABN 13 000 296 640, AFSL 232507. Any advice is general advice only. Please consider your financial situation, needs and objectives and read the Combined FSG/PDS before deciding to buy this insurance.