Travel insurance basics

TRAVEL INSURANCE BASICS

It's wise to protect yourself and your kit when travelling.

 

Southern Cross Travel Insurance (SCTI) has put together a must-read guide on the most common mistakes to avoid when buying travel insurance.

 

Most Australians are aware of the benefits of travel insurance for when things go wrong on holiday. However, you need to note some key elements to ensure that you’re adequately covered and that, should plans go wrong, your claim will be paid.

Here’s an edited SCTI list that we’ve selected as most appropriate for outback travellers.

 

 

Alcohol consumption

 

 

It’s important to note that travel insurance policies often have exclusions regarding alcohol consumption. If alcohol is found to have contributed to an event resulting in a claim, such as a fall or lost phone, the claim may not be payable. 

Insurers will consider supporting information, including medical reports and occasionally supplementary information like witness statements and bar bills, to further understand the causal impact.

Always read the fine print of your policy to understand how alcohol consumption can impact your coverage.

 

 

Secure your belongings

 

 

Leaving your personal possessions unattended and visible in vehicles and in public places can lead to your claim being rejected. Travel insurance typically requires that you take ‘reasonable care’ of your belongings. Make sure to secure your valuables in a safe place to avoid theft and potential claim issues. That’s particularly important in high-crime-rate outback towns, including Alice Springs and Tennant Creek.

From January to September 2024, SCTI paid 746 claims to Australian travellers who have lost their possessions and 230 of those included a lost mobile phone.

 

 

Cover for two-wheel travel

 

Riding a bike or scooter can be a convenient way to explore your camping destination, but it can also be risky if you haven’t added this activity to your travel insurance policy. Many standard policies do not cover bike or scooter travel unless specifically stated. 

Generally, claims will only be covered if you meet the policy conditions, such as having the appropriate licence, where necessary and wearing a helmet.

Between January and September 2024, SCTI saw an average claim cost of $8101 for Australians involved in moped and scooter-related incidents, with the highest claim paid being $83,748.

 

 

Skiing adventures

 

 

 

Adventurous activities like water and snow-skiing, jet-ski riding and snowboarding can be exhilarating. Always ensure you’ve selected the appropriate policy add-ons to enjoy the activity without stress. Make sure you check the fine print as certain activities, including venturing off-piste and doubling on jet skis, may not be covered.

 

 

Between January and September 2024, SCTI paid out 91 claims to Australians who had incidents at the snow, with claims averaging $1866 and the highest claim being $28,584.

 

 

Pre-existing conditions

 

Failing to disclose pre-existing medical conditions (PECs) can result in denied claims. It is crucial to inform your insurer about any health issues before purchasing your policy. 

Some insurers offer coverage for PECs at an additional cost, providing peace of mind and financial protection during your travels. Between January and September 2024, the most common PECs declared by SCTI customers were: high blood pressure – 11 percent; asthma – 5 percent; anxiety – 4 percent; hypertension – 4 percent; diabetes type 2 – 3 percent and depression – 2 percent.

 

 

Travelling with expensive equipment

 

If you’re a photographer with expensive camera equipment; a musician travelling with instruments, or your included gear is expensive, you need to ensure that your travel insurance covers these items. 

Standard policies may have limitations on high-value items, so it’s essential to check and add extra coverage if necessary to protect your gear from loss, theft or damage.

For example, between January and September 2024, SCTI approved 588 claims for lost and damaged electronic equipment, with an average claim cost of $536 and the highest claim paid out being $3000.

 

 

Medical emergency coverage

 

 

Medical emergencies can be costly and stressful, especially when travelling in remote areas. You need to be sure that your travel insurance policy includes comprehensive medical coverage, including emergency medical evacuation and repatriation. 

Knowing the extent of your medical coverage can save you and your family from significant financial burdens and provide crucial support in emergencies.

Between January and September 2024, the average cost of SCTI Emergency Assistance claims was a staggering $12,459.

 

 

Trip cancellations and interruptions

 

Trip cancellations and interruptions due to unforeseen events, including breakdowns, accidents, illness, severe weather and family emergencies can disrupt your travel plans. It’s essential to understand the circumstances under which your travel insurance covers cancellations and interruptions. 

Check if your policy covers non-refundable expenses and any penalties associated with changing your travel plans.

 

 

Adventure and extreme sports

 

If your travel excursions include adventure sports, like bungee jumping or white water rafting, ensure your travel insurance covers these activities. Generally you’ll only be covered if you use licensed operators, follow their safety instructions and wear all required safety equipment. 

Standard policies often exclude extreme sports and you may need specialist insurance coverage for some activities. Good luck getting coverage for rock climbing and cave diving!

For more travel insurance information, visit www.scti.com.au.