Travel insurance is understandably easy to overlook in the fun, hectic days before taking any overseas trip. As exciting and varied as Australia is, there is nothing like heading overseas. In this article, we will highlight the importance of comprehensive travel insurance addressing why you must pay attention to it and choose your policy carefully.
Do I need travel insurance?
The obvious answer is: yes, everybody should take out travel insurance before embarking on any overseas trip. But why? How likely are you to need any of the coverage it provides?
It is impossible to say whether you will need the assistance of your insurance policy during your trip. As with all insurance, it is to be hoped you never need any of it but that does not mean you won’t. Travelling does not come without significant financial risks that can manifest themselves in the form of anything from accidents and illness to missed flights and travel-company bankruptcies. The key is to decide which elements you wish to be covered for and opt for a policy that best addresses those issues.
The basic, most essential function of any travel insurance policy should be to provide maximum coverage in case of medical emergencies. Lost baggage is incredibly stressful and irritating. Cancelled tours are expensive and frustrating. Stolen credit cards and cash can put a dampener on your trip. None of those things matters when compared with the nightmare of needing emergency medical treatment and discovering you do not have the requisite coverage.
Travel insurance basics
Travel insurance purchased in Australia is usually separated into five major components:
- Medical
- Trip cancellation/interruption
- Evacuation
- Baggage
- Flight insurance
It is certainly possible to add supplementary cover to address specific concerns, from identity theft to issues caused by political unrest. In most cases, travel insurance is sold as a bundle, including some or all of the five fundamental elements to one degree or another. This is when it is important to know which of them you prefer the best coverage for and weigh up your options accordingly.
Comprehensive travel insurance
As the cost of your chosen travel insurance policy rises, so does the level of coverage you can expect. Once you reach the level of comprehensive cover, you can rest assured that almost any contingency has been accounted for and you will not be left in the lurch at your time of greatest need. That’s not to say you should accept your chosen insurer’s use of the word ‘comprehensive’ and look no further. The onus is still with you to check the fine print and ask as many questions as necessary to feel confident in your choice.
Conclusion
There is no doubt that travel insurance is a key component of any trip out of Australia and many countries insist on seeing evidence of it when foreigners arrive at immigration. It can cause a great deal of hassle and expense to deal with it at that juncture. Think ahead and include comprehensive travel insurance in any budget you have for your trip. Hopefully, you will never need to use it, but if disaster strikes, there is no finer way to protect yourself.
