Travel > Travel Insurance

Travel Insurance

Planning that once in a lifetime adventure trip? Or just a quick shopping spree in Europe? Whatever the reason for travelling, one area often overlooked is travel insurance. Many people do skimp on insurance, hoping for the best and trying to ignore the risks. However, excuses like " I thought it couldn't happen to me" and " But it was all planned perfectly, how could this happen?" won't help you thousands of miles from home in a medical emergency or when your luggage has disappeared.

The fact is, that over 20,000 cases of medical emergencies are dealt with by the Australian Dept of Foreign Affairs and Trade each year, and with natural disasters and international terrorism on the rise, this number is set to rise significantly in the future.

DFAT, which is the department responsible for Australians travelling abroad, strongly advises all travellers to take out adequate travel insurance, and quotes both statistics and real life situations to press the point home. For instance, 700 Australians are hospitalised each year, with another 100 being medically evacuated. Hospitalisation costs, emergency evacuation costs and even the cost of flying home deceased relatives can reach thousands of dollars, and bankrupt the traveller or his family.

Most people associate travel insurance with high risk adventure trips involving white water rafting or bungee jumping, but the reality is that far more people need help because of banal, everyday mishaps such as road accidents or suspected appendicitis, especially when these occur in remote parts of the world, where facilities may be hard to reach except by air.

One real life story recounted by the DFAT is of an Australian who rented a moterbike in Bangkok, and was involved in an accident. Because he had no travel insurance, he received only basic treatment, and suffered severe complications. In the end he had to be evacuated by the Australian embassy, at a large expense to his family, and had to undergo further operations to save his leg in Australia.

So how can you get adequate and reliable travel insurance?

Well, obviously, it pays to shop around. Agents often take large percentages when they sell you travel insurance, so if you can bypass them, your costs should go down. Using the internet is a good idea, as long as you make sure you use sites backed by reputable insurance agents. Check the credentials and phone numbers provided before handing over your hard earned cash, and check that they are recognised by the ICA, a self regulatory body which enforces a fair code of practice.

Don't leave it until the last minute before trying to get travel insurance. Travel insurance typically consists of a lot of different small costs, some of which vary from company to company. By leaving enough time to check thoroughly you can get an insurance package which is both better tailored to your needs and less expensive.

Don't be put off the idea because you think the expense is too large- the truth is that often good travel insurance for your whole trip can cost the same as one night in a reasonable hotel, depending on how long you will be travelling, and more importantly, one day in hospital will often cost much more than the insurance.

Be aware that the USA and Europe are particularly expensive destinations, and be prepared to pay more. If you have an European passport, you can save a lot of money in Europe, since you may qualify for free medical coverage, depending on which country you are visiting.