21st Jul 2014
Five reasons why you need travel insurance
Author: YourLifeChoices

When you’re booking your trip, travel insurance may seem like just one more expense, but travelling without it could prove even more costly. Here are five reasons you should consider travel insurance.

1. Your intended destination is destroyed
Imagine, if two days before you’re ready to fly off to an idyllic beachside resort or an overseas city break, that a freak storm closes down airports or wreaks destruction. Suddenly the $3000 you spent on your trip may be lost.

2. A family emergency cuts short your break
You’re halfway into your trip and your daughter has a car accident back home and can’t look after her young family. Would you have the money to fund the return flight?

3. Hospital bill shock
A delightful meal at a Greek taverna leaves you and your travel companion with a nasty case of food poisoning and after several days in hospital, you’ve missed your flight home and are handed a hefty medical bill.

4. Stolen luggage leaves you naked
Well, except for the clothes you’re wearing. Most airlines can track lost luggage but if yours has been deliberately taken by someone, you may not get it back. If you’re travelling with medication, the cost of replacing this may be expensive, assuming you can get replacement pharmaceuticals.

5. Illness stops you travelling
You’ve waited all year for your trip, planned how you will spend every minute, but just before you leave, illness strikes and you’re simply too unwell to travel. Many travel companies won’t offer refunds so close to departure and your illness could prove to be costly.

None of these incidents are major, but the timing of them and the knock-on effect could end up costing you dearly if you don’t have travel insurance.


    To make a comment, please register or login
    14th Dec 2014
    After expenses insurance companies make money on travel insurance. In other words the risk to the insurance company is less than the premium. Consider the scenarios above. If something happened could you carry the risk yourself? If you can then you don't need insurance.

    That said I once hired a car and declined the insurance option. Nothing happened but I worried the whole time that something might. Logically the risk is less than the premium but if it makes you feel better it can still be worth it. These days I pay the extra for the peace of mind.
    2nd Apr 2016
    A mate of mine recently travelled to Singapore, Hong Kong and Tokyo. He booked the whole package through Flight Centre and took out the travel insurance through Flight Centre with Cover More at a cost of about $200 for two weeks. When he arrived in Tokyo, he has a asthma attack at the airport. They did a special immigration/customs clearance for him and took him to hospital. He was admitted for one night. Before they would treat him, he was required to provide his credit card details and he also provided details of his Cover More travel insurance policy. He had a pre-existing condition having been previously diagnosed with asthma some 8 months ago and was on medication and puffer. Cover More cover many pre-existing conditions including asthma automatically and without a premium increase, higher excess or exclusion. It seems to be one of the few travel insurance policies that does and reports are they have been recommended by travellers who have needed to claim. The bill for one night's hospitalisation and other costs of the transport from airport to hospital came to 1.7 million yen. That translated to about $Aus20,300. Image if you were hospitalised for an extended period and how much you would be required to pay if you did not have travel insurance. Also the travel insurance also covered him from the date of booking to his return to Australia so if he had been unable to travel for many reasons including sickness or injury, he would have been covered.

    However one thing I found out when I travelled to Thailand and had an ear drum blown out from a string of fire crackers let off by a tourist, once I arrived back in Australia, treatment was under Medicare and private domestic health insurance not the travel insurance. So in a serious injury or sickness where special evacuation was required (even with charter aircraft and medical team), once you reach Australian soil, your travel insurance ceases to cover any treatment received in Australia and you are then under the public or private hospital system.

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