Aussie travellers at risk of significant losses due to disturbing travel insurance trend.
New research conducted by insurer Budget Direct found that one in five holidays are cancelled before a traveller sets foot offshore.
The research revealed that 18 per cent of those surveyed said they had experienced “an unfortunate event where they were forced to cancel an overseas trip even though it was already booked and paid for”.
It also highlighted some disturbing travel insurance trends, such as that more than half of Aussie travellers only buy insurance at the last minute instead of at the time of booking, putting them at risk of significant losses should ‘unfortunate events’ occur before being covered.
More than a quarter (26 per cent) of respondents said that they delay organising holiday insurance because they think their credit card insurance covers them.
One in six (16 per cent) believe travel insurance as a ‘must have’ item, but more than half (55 per cent) admitted to not taking out insurance when travelling overseas.
Why? Cost was the main factor, said 40 per cent of respondents, while 38 per cent said that because they were only staying for a short time they didn’t think it was worth it and another 38 per cent said they didn’t take out insurance because they were visiting family.
Luckily, 41 per cent of those who had to cancel their holiday due to unforeseen events were covered by travel insurance.
However, 37 per cent had experienced an incident abroad and were left out of pocket due to insufficient travel insurance cover, with the average expense being $1459.
“Reading and understanding the policy document to ensure you know what you are covered for and what you aren’t is key to preparing for common travel mishaps that may occur such as lost luggage, unexpected flight cancellations or delays and medical emergencies,” said Budget Direct general manager of travel insurance Tanya McCaffrey.
Do you always buy travel insurance? Do you know exactly what you’re covered for before you leave? Do you buy at the time of booking or just before you leave?
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