I am being besieged by questions from readers about travel insurance at the moment.
The travel plans of thousands are being disrupted by the Middle East crisis and there is a lot of misinformation being spread.
So I checked in with the travel insurance gurus at Compare the Market to answer the most common questions you’ve been sending me, such as:
When should people be organising travel insurance?
As soon as you book. Full stop. We’re seeing a worrying trend of people buying travel insurance the night before a flight – or worse, after a crisis hits the headlines. Think of events like the California wild fires, Europe floods, the Bali volcano and of course, the war in Iran.
The problem is once something becomes a known event, whether that’s conflict, strikes or natural disasters, it’s generally excluded from new policies.
Buying early doesn’t just protect you while you’re away, it covers you in the lead-up, with cancellations, illness or family emergencies just as likely to derail a trip.
Travel insurance should be at the top of your holiday checklist, not the bottom.
It’s not just world events that can impact your ability to travel, right?
Absolutely, and that’s something people often overlook. Big global events grab headlines, but personal emergencies are also common reasons for cancelling or changing travel plans.
Medical issues, unexpected hospital visits, or a loved one passing away can all happen before you even leave home.
Without insurance sorted early, travellers can be left thousands of dollars out of pocket… even if the issue has nothing to do with a war or disaster.
Life is unpredictable and that’s exactly why insurance exists.
How do you know you’re getting the right coverage?
Start by thinking about your trip, not just the destination. Where are you going? What are you doing? Skiing, cruising, travelling with kids or pre-existing conditions all need specific cover.
Look at things like medical cover limits, cancellation benefits and whether domestic travel disruptions are included.
If you’re unsure, compare policies side-by-side – that’s often when the differences really jump out.
In light of recent changes at Qantas, what do Aussies flying domestically need to be aware of?
The big thing to know is that most travel insurance won’t cover non-refundable deposits or pre-paid accommodation if a flight is cancelled due to airline scheduling changes.
Some policies may offer limited cover, depending on when the insurance was purchased, but these situations are often excluded because they’re unpredictable and difficult for insurers to price.
Cancelled flights are usually handled by the airline, which may offer a refund or rebooking, but that won’t always cover the flow-on costs.
If you bought insurance before recent airline announcements, it’s still worth checking your policy or calling your insurer to check.
If you do want to protect yourself, probably your best option is to delay paying deposits or final balances where you can, until there’s more certainty around travel plans.
How can you ensure you’re getting the best deal? Does cheap travel insurance mean sub-par coverage?
You often don’t have to spend a lot to get great value cover that could save you thousands should you ever need to claim.
Travel insurance really isn’t all that expensive in the grand scheme of your holiday budget – compared to flights and accommodation, which can easily run into the thousands.
But what matters is value for money, not just the headline price.
A bargain policy that excludes cancellation, limits medical cover or has major restrictions can end up costing you far more in the long run.
For example, the free or really cheap cover you can get with credit cards is often extremely limited and that could leave you in the lurch if you ever do need to claim. A standalone policy is often going to be your best bet.
Compare carefully, understand the coverage, and make sure the policy actually protects you when things go wrong..
