Travel Awards: Nicola Field

From insurance and holiday cash to staying connected overseas, we’ve found the best deals to help you save while travelling

Australians are renowned as global jetsetters. Almost 10 million of us travelled abroad last year alone, taking advantage of a strong Aussie dollar and plunging airfares that are making it more affordable to holiday internationally. But along with your choice of destination, it also pays to plan the financial side of your trip. We take a look at the essentials, and where the best deals can be found.

INSURANCE

Travel insurance is up there with a passport as a must-have if you’re heading overseas. Unexpected hiccups such as missed flights or lost luggage can bring a raft of unplanned costs but the real budget buster comes if you get sick or injured while you are overseas.

Australia has reciprocal health arrangements with 11 nations, so you may be entitled to affordable medical treatment in countries like the UK, New Zealand and Ireland (check the Human Services website for full details). But outside these destinations you’re likely to be on your own when it comes to footing the bill.

Research by the Department of Foreign Affairs and Trade (DFAT) shows one in two Australians believe the government will pick up the tab for overseas medical costs. Yet DFAT’s consumer website, SmartTraveller (smartraveller.gov.au), clearly spells out that the government won’t pay your medical bills, even in an emergency.

It makes travel insurance, even basic cover, absolutely essential. Worryingly, close to 850,000 Australian adults visited international destinations last year without travel cover in place. That can mean facing costs of up to $12,500 a day for hospital treatment in the US, or a bill of $94,000 if you need to be repatriated home from popular destinations like Indonesia.

The good news is that travel cover is very affordable, often amounting to a fraction of other expenses such as airfares or accommodation.

Best travel insurance Single person, single overseas trip

For singles taking one trip overseas, Online Travel Insurance (OTI) consistently offers good value, having also taken out this award in 2016.

OTI’s basic cover is extremely affordable, with a premium of around $64 for a 21-year-old planning to spend January in the UK. This includes unlimited overseas medical expenses and $2.5 million in public liability cover but you’re not protected for the cost of missed or cancelled flights. Nonetheless, it’s ideal if you’re a “let’s see where the road takes me” type of traveller who hasn’t pre-booked flights or accommodation.

TRAVEL TIP How does public liability cover work?

Your travel cover should include a public liability component, often worth $1 million-plus. Sounds impressive but what does it mean?

Public liability insurance protects you if you damage property or injure someone while overseas. Some policies also include the cost of legal fees to defend any claims against you.

Best travel insurance Family of four, single overseas trip

Travelling with kids is a tonne of fun but it can bring additional risks. The cost of replacing missed flights or accommodation will be a lot higher than for singles, and small children can be more susceptible to picking up bugs or illnesses.

Southern Cross Travel Insurance (SCTI) brings great value to the table for families. Dependent children aged 17 years or under are included free, and this can include unmarried children, stepchildren, grandchildren and foster kids.

As a guide to the cost, a family of four travelling to Bali for a fortnight can pay a premium of around $156 with SCTI.

TRAVEL TIP Be wary of free credit card cover

Your credit card may offer “complimentary” travel insurance, though it’s not truly free as the cost is built into the card fees.

Strict terms and conditions may apply. To activate cover you may need to pay for part of the trip using your card or put a set amount, such as $1000 of vacation costs, on the credit card. Be sure to read the fine print to understand exactly what you’re covered for – and the exclusions. Contact your card issuer if anything is unclear before relying on this type of insurance.

Best travel insurance Single person, annual multi-trip, worldwide

Multi-trip cover is ideal if you regularly travel over-

seas for business or pleasure. It provides protection for multiple trips taken within a 12-month period, and that means being able to take advantage of cheap airfares for quick getaways without having to renew your insurance for each trip.

With our award winner Multitrip Travel Insurance, the cost of cover for a 35-year-old planning multiple trips anywhere in the world throughout 2018 is about $139. This assumes no single trip is longer than 30 days, which may not suit all travellers. Longer trips are available at a higher premium. Cover includes unlimited medical expenses, $2000 in baggage and $1 million in personal liability protection.

TRAVEL TIP One in four Aussie travellers run into problems

Don’t think “it won’t happen to me”. In 2016, one in four Australian travellers (38% of under30s) experienced a problem that could potentially be claimed on travel insurance.

The main incidents were:

7% cancellation of flight or tour

6% flight delayed more than 12 hours 6% received medical treatment

6% lost, damaged, stolen luggage

5% missed connecting flight 4% lost, damaged, stolen personal items 4% forced to cancel trip before departure. Source: Survey of Australians’ travel insurance behaviour, DFAT, August 2016 Best travel insurance

Family of four, annual multi-trip, worldwide

WorldCare Australia’s multi-trip cover offers a wide range of protection for families. The annual premium for a family of four is around $359 for cover based on a maximum of 15 days on any one trip. The policy includes unlimited medical expenses, unlimited cancellation, $10,000 worth of luggage and up to $3000 for rental car excess.

TRAVEL TIP Hold the mail

There’s nothing like an overflowing mailbox to let crooks know you’re not at home. Rather than relying on neighbours to collect your mail while you’re travelling, Australia Post offers a “hold mail” service, which sees the local post office hang onto your mail until you return. It costs $26.40 for the first week and $8.90 for each additional week.

MONEY

It always makes sense to carry some local currency while travelling, but stick to small sums. Travel insurance typically covers only small amounts of around $250, and some insurers stipulate that cash must be held in a safe overnight.

A sensible option for travellers is to carry a mix of money options including a travel card, credit card and even a traveller-friendly bank account. This provides flexible purchases options and valuable back-up if cash or a particular card is lost or stolen.

Best travel money card

Travel money cards have revolutionised the way we spend overseas. They work in much the same way as a debit card and can be used at Eftpos and ATMs. But instead of drawing on your transaction account, they are loaded with a set amount of foreign currency before you leave. The card balance can be checked online, and if funds start to run low it’s easy to top up the card using internet banking. Any funds remaining when you return home can be transferred back to your everyday account.

NAB’s Traveller Card comes packed with freebies. “With no purchase cost, no reload fee and no overseas ATM withdrawal fee, NAB’s Traveller Card was the clear winner,” says Bessie Hassan, money expert at Finder.

Do note that the balance on your travel money card won’t earn interest – something to bear in mind if you put large sums of cash on the card well ahead of the departure date.

TRAVEL TIP Let your card issuer know you’re travelling

If you’re taking a debit or credit card overseas, let the card issuer know – this can usually be done online. That way the card won’t be frozen because of unusual overseas transactions.

Best credit card for overseas travel

Carrying a credit card while travelling can make sense, even if it’s just reserved for emergencies. But go easy on the plastic. According to Finder, 41% of Australians arrive home owing money on their card, and with the average holiday debt being $2705 it’s no surprise one in 10 cardholders take up to 12 months to clear the slate.

Sticking to a low-cost credit card can trim the expense. “ME’s simplified frank card has a low interest rate, low ATM and low foreign currency conversion fees,” says Finder’s Hassan. “When combined with a low cash advance rate ($4 or 2% of the amount involved) and no annual fee, this is the best all-round card for overseas travellers.”

Best transaction account for overseas travel

Most transaction accounts come with a free debit card, and Visa or Mastercard are widely accepted at ATMs and Eftpos globally. However, your regular card could come with high overseas ATM fees. One way to avoid this is by using a globally recognised transaction account, which can provide the lowest cost per withdrawal across all travel money options.

As a truly international bank, Citibank has taken out this award for the second consecutive year. “Citibank’s everyday transaction account is the only account to offer free overseas purchases and ATM withdrawals,” says Hassan. You may still be charged a fee by the owner of the ATM.

Here in Australia, Citibank’s Dining Program offers an extra perk. Use your Citibank debit card at any Citibank Dining Program partner restaurant and receive a complimentary bottle of wine.

According to Hassan, Macquarie’s transaction account comes a close second. It charges a $5 ATM fee but pays 2.3% interest on deposits above $25,000. If you can wear the ATM charge, you could potentially make money on your travel cash.

STAYING CONNECTED

Don’t underestimate the cost of using your mobile phone overseas. Data roaming can be especially expensive as your regular carrier will pass on inter-carrier charges (the cost of accessing another network) possibly with some mark-up of its own.

Two ways to stay connected without blowing the budget include purchasing an add-on pack, which can be far less costly than pay-as-you-go roaming, or jettisoning your local SIM altogether and picking up a prepaid SIM at your destination.

Best roaming add- on

The major providers – Telstra, Optus and Vodafone – cover 78% of the mobile market in Australia, and no other providers offer an add-on roaming service, which includes all calls and texts as well as data in the daily fee.

Hassan says that along with a lower daily cost, the big clincher that saw Vodafone take out the award is a far more generous data allowance. “Both Optus and Telstra offer a measly 100MB per day, which will not last long,” she says. “Vodafone, on the other hand, lets you use your full at-home data allowance while abroad – up to 1.6GB of data, depending on your plan.”

Best prepaid local SIM

Buying a local SIM for your phone will almost always deliver the best value if you’re visiting one country for a set period. The only real downside is that you’ll have to work off a new phone number during your trip.

Finder’s picks focus on the five most popular destinations for Australian travellers based on a spend of about $60, with calls and texts included.

STAY SAFE

Before you head overseas, it’s worth registering your trip itinerary and contact details with DFAT so that you or your family can be contacted in an emergency. Check the SmartTraveller website for more information on this and a wide range of travel topics.

Go easy on the plastic – 41% of Aussies arrive home owing money on their card