Travel insurance policies include varying degrees of cover for:
- medical and dental
- baggage and belongings
- personal liability
- legal costs
- resumption of journey
- rental car excess cover
Choosing a policy
Step 1: You’ll need different levels and types of cover depending on where you’re going. For example, if travelling to the US where healthcare is expensive, we recommend you take a policy that has ‘unlimited’ medical cover.
Step 2: How do you travel - backpacker or first class?
- Luggage and personal belongings: will you be taking expensive items or will you be travelling light?
- Activities: will you be skydiving or bungy-jumping, hiring a car, or backpacking and picking up work as you go?
- Family, needs and health: do you have special medical needs, are you travelling with children or do you have relatives that may become ill while you are away?
- Advance bookings: are you booking fares, accommodation and tours in advance? If so, consider cover for cancellation, additional expenses and delays.
Step 3: How to save $$$
- Buy online if you can find a discounted policy that suits your needs.
- High commissions leave plenty of room to negotiate with agents.
- If you travel overseas several times each year, annual multi-trip policies may work out cheaper overall.
- Some companies (for example health insurers) give discounts to members.
Step 4: Start shopping for a policy. Contact at least 3 insurers and read their policies to decide which one suits you best.
Special requirements: travellers with pre-existing medical conditions, older travellers, single parents, pregnant women, adventure travellers and travellers planning on working during your holiday need to be even more careful when choosing a policy.
Want to know more?
See the full report from Choice. Choice is an independent, non-profit Australian organisation.
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