As Australians return to the skies in record numbers, the travel industry is experiencing a resurgence rivalling pre-pandemic levels. The latest data reveals that Australians took an average of 1.45 international flights per person during the 2024 financial year. International passenger movements surged by a staggering 31.7% year-over-year, while domestic travel also saw a robust 6.0% increase in activity.

However, the renewed enthusiasm for exploring the world has brought a significant risk: improper travel insurance coverage. Insure&Go, a leading travel insurance provider in Australia, warns that many Aussies are still making critical mistakes when purchasing travel insurance—errors that could turn a dream vacation into a financial nightmare.

“Many travelers assume that a standard travel insurance policy will cover them no matter what. This misconception can lead to costly surprises if the worst happens,” says David Mayo, spokesperson for Insure&Go. He adds, “During this time, when Australians are more budget-conscious, sidestepping these typical mistakes can help travelers enjoy their trips without the worry of unforeseen costs.”

So, what are the most common and expensive mistakes to avoid? Here’s a detailed look at the top six pitfalls that Insure&Go highlights and how you can steer clear of them.

1. Buying Travel Insurance After Departure

One of the most frequent yet detrimental mistakes travellers make is purchasing travel insurance after their journey begins. Many insurance providers could deem your policy invalid if you wait until you’ve boarded your flight or crossed borders. For example, you would be left uncovered if an accident or emergency occurs during transit.

Expert Tip: Always buy your travel insurance before your departure date. Booking early guarantees coverage from the outset and can provide cancellation protection in case of sudden changes or emergencies before you leave.

2. Failing to Declare Pre-Existing Conditions

Another critical error is failing to disclose pre-existing medical conditions. Insurers often have stringent policies and waiting periods for specific health issues. If, for instance, you have a history of a chronic illness like cancer or diabetes and haven’t declared it, your claim could be denied—even if your condition had no bearing on the issue at hand.

Expert Tip: Be honest about your health history when purchasing insurance. While it may increase your premium, this transparency ensures you’re covered when needed.

3. Assuming You’re Covered for High-Risk Activities

Are you planning bungee jumping in New Zealand or diving in Bali? Don’t automatically assume your standard policy will cover these activities. High-risk sports and adventure activities often require additional coverage, which must be purchased separately.

Expert Tip: Check with your provider about coverage for specific activities. Insure&Go advises reviewing your itinerary and opting for policy extras tailored to your planned activities.

4. Overlooking Alcohol Restrictions

This is one of the most misunderstood aspects of travel insurance. If you have an accident or injury and alcohol is found in your system, some insurance companies may reject your claim. This applies even if the alcohol did not directly contribute to the incident.

Expert Tip: Know your policy’s stance on alcohol consumption. While a celebratory drink might seem harmless, it’s crucial to understand how it might impact your coverage.

5. Ignoring the Importance of Trip Duration

Your trip’s length can significantly impact your insurance coverage. Many travellers overlook this, assuming that all policies provide blanket coverage regardless of the trip’s duration. However, extended trips often require special long-term travel insurance policies.

Expert Tip: Ensure the coverage period matches your travel dates before confirming your policy. If you plan to extend your stay, notify your provider and modify your policy accordingly.

6. Disregarding Government Travel Warnings

One of the fastest ways to invalidate your travel insurance is to visit a destination marked as a “Do Not Travel” zone by government advisories like SmartTraveller.gov.au. If you enter these high-risk regions, your insurer can cancel your policy immediately.

Expert Tip: Stay updated on the latest travel advisories. Even with existing coverage, entering a restricted zone can render your policy useless.

The Hidden Cost of Travel Insurance Mistakes

Each of these errors can have severe financial implications. For instance, emergency medical expenses overseas can quickly escalate into thousands of dollars. Similarly, a trip cancellation without the right coverage could mean you’re out of pocket for flights, accommodation, and activities.

“It’s all about understanding what your policy includes—and just as importantly, what it doesn’t,” Mayo emphasizes. “Doing your homework on travel insurance isn’t just about saving a few dollars; it’s about protecting your entire travel investment.”

A Final Word: Get the Right Coverage Before You Go

The next time you book an overseas adventure, ensure that your travel insurance is more than an afterthought. Read the fine print, declare all necessary information, and choose a policy that aligns with your activities and destinations. By taking these steps, you’ll secure the peace of mind that allows you to focus on what truly matters—enjoying your holiday to the fullest.

 

 

 

Written by: Soo James

 

 

 

 

 

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