Why Do I Need Travel Insurance?

>> Why Do I Need Travel Insurance?

Have you heard of some insurance claims being rejected and wondered, "Why do I need travel insurance?" Here's why.

The easier question to answer would be why don't you need travel insurance? If you're leaving Australia for absolutely anywhere, there is no scenario that let's you out of buying overseas travel insurance.

Statistics indicate overseas travellers have a 50% chance of falling sick, whether it's a minor ailment or something more serious, and it only takes a quick look at the DFAT statistics to confirm the need of purchasing comprehensive cover, even when purchasing low cost travel insurance.

DFAT - the Department of Foreign Affairs and Trade - advise some sobering stats over their smartraveller.gov.au web site:

Over 20,000 cases handled each year with over 700 hospitalisations, over 16,000 involving theft, robbery and/or assault, over 600 deaths, and more than 100 evacuations.
They advise hospital care in South East Asia can be over $800 per day with evacuations from overseas destinations varying from $60,000 up to $300,000 in some instances.

These are not figures any traveller would want to pay, especially when cheap travel insurance is easily available, yet for those travelling without adequate cover that is precisely the outcome as the government requires all expenses are repaid.

What About Insurance Claims That Are Rejected?

Some travellers ask why take out travel cover, feeling travel insurance is a waste of money after hearing stories where an insurer has refused a claim. The Insurance Council of Australia list the key mistakes people make and what to look out for when purchasing medical travel insurance:

Not taking out the appropriate cover for the length of stay, meaning the cover has run out while still away.
Not taking out the right type of cover in relation to the major destination or activities undertaken.
Not taking out cover at the time of paying for any travel costs such as airfares and accommodation, advising this covers the policyholder for any cancellation costs that may occur.
Not disclosing pre-existing medical conditions. Pre-existing conditions may still be covered but they must be declared.
Not understanding the per-item limit that may apply to expensive items such as laptops, jewellery and cameras.
Not taking care of possessions i.e. leaving them unattended in a public place, which results in theft.

When each of these points is considered, each is a valid consideration and easily avoided.

Perhaps, instead of asking, "Why do I need travel insurance?" the question should be, "Where do I get the best cover?"