The best policy

What travel insurance looks like in 2022

They say if you can’t afford travel insurance, you can’t afford to travel. And never has that maxim been more relevant. As we once again embrace travel around the newly opened world, experts urge travellers to buy insurance from the time they make their first paid booking. We take a look at what you need to look out for when choosing a policy.

Savvy tip 1

Covid: Around 68 per cent of policies now offer some form of Covid-related coverage, says Canstar’s Steve Mickenbecker. But they aren’t all created equal so you must read the inclusions and exclusions. “There is a hierarchy of what will be covered, from policies that exclude pandemics and epidemics altogether to those that cover Covid-related cancellations,” he says.

Savvy tip 2

Cruising: While some insurers are back covering your cruise trip, you can expect to pay more than for a land-based holiday, says Mickenbecker. “The risk of getting sick is higher on a cruise, so the premium will be higher, too,” he says. Gary Hunter, travel insurance expert at Finder, adds Travel Insurance Direct and Southern Cross Travel can cover you for Covid-related medical expenses and cancellations while you’re on a cruise.

Savvy tip 3

PDS: The Public Disclosure Statement may be a weighty tome, but it includes critical information on what you are covered for and what you are not covered for. Mickenbecker puts it bluntly: “If you don’t read the PDS, you’re crazy.”

Savvy tip 4

Mandatory: It is now a condition of entry in some countries, such as Bali, Singapore and Thailand, that you have travel insurance that covers you for Covid-related medical expenses, says Hunter.

Savvy tip 5

Top tip: Your travel insurance should begin when you make your first deposit. “A lot of people think travel insurance covers you just for the actual trip away,” Mickenbecker says. “But you really should have travel insurance from the time you pay out any non-refundable costs.”