Travel with caution
READ THE FINE PRINT TO AVOID FALLING INTO INSURANCE TRAPS WHEN BORDERS REOPEN
There could be cases of once bitten, twice shy over travel insurance as Australians prepare to take international holidays. Many people were stung in 2020 by fine print in their policies that prevent pandemic-related payouts, but the benefits of having travel insurance still massively outweigh the potential cost of no cover.
Covid-related cover has started appearing in policies and travellers can also get hit by huge medical costs, theft, cancellation charges and car hire excesses.
Insurance specialists say people should:
Check their policy covers them for medical costs if they catch Covid.
Find a policy covering cancellation costs if the virus affects their trip.
Understand if they are insured for government border restrictions or accommodation shutdowns because of an outbreak.
Remember that destinations listed as “do not travel” on the smarttraveller.gov.au website won’t be covered.
New research by Mozo.com.au has found 55 per cent of people are ready to travel internationally and more than two thirds want insurance with Covid cover.
“Some travellers will be hesitant about taking out travel insurance, having been burnt by the pandemic last year,” Mozo spokesman Tom Godfrey says.
“But even without Covid cover, a decent policy is still your best defence against a holiday from hell.” Godfrey says reading the fine print in a product disclosure statement is vital, because some travel insurance policies might cover medical or cancellation costs if you catch Covid but don’t extend to border closures.
He says travellers should compare policies to ensure they get the bestvalue cover and monitor government advice about their travel and stopover destinations.
Flight Centre’s general manager Australia Kelly Spencer says people should consider insurance with Covid19 benefits when booking either domestic or international travel.
“When Covid-19 first hit, it exposed gaps in travel insurance as most policies excluded cover for cancellations as a result of epidemics, let alone for a global pandemic,” she says. “Since then, a number of insurers and suppliers have added Covid-19 benefits to their policies, including Cover-More who we are affiliated with.
“We’re living in a world where Covid-19 will continue to have an impact on our lives wherever we go, domestically and internationally, for a while to come.”
Allianz Partners chief sales officer Aimee McGuinness says her firm’s cover still has a general exclusion against epidemics and pandemics, but some benefits will apply for people diagnosed with Covid-19 before or during travel.
“Travel insurance is important as it may cover you for unexpected emergency medical bills, lost or stolen luggage, delays or cancellations to your trip, and many other unfortunate scenarios,” she says.
“Before purchasing a travel insurance policy, it’s important to
consider the needs of your trip. Do you have pre-existing medical conditions that need to be considered? Will you be travelling with valuables? Will you be undertaking certain sporting activities such as skiing?”
Noelia Panayiotidis is a regular overseas traveller to visit family in Europe and is a big believer in travel insurance.
“You just don’t know what’s going to happen – it’s the things you can’t predict,” she says.
Panayiotidis has dealt with travel
insurers over missing luggage and a medical claim in the US, where health costs can be astronomical.
“You don’t want a $10,000 holiday turning into a $150,000 holiday,” she says.
Travel agent Robert Caldwell says people who travel semi-regularly should consider an annual multi-trip policy that kicks in automatically for a year.
“Make sure you add sufficient cancellation and amendment cover for the trip to make sure you’re fully protected,” he says.