If you’re unsure or complacent about your travel insurance coverage, you’re not alone. A recent iSelect survey found that eight in 10 Australians do not fully understand what their travel insurance covers, while one in five admit they have no idea what protection they actually have.
The survey also revealed that 51 per cent of Australian travellers only take out travel insurance for overseas trips, leaving them unprotected during domestic travel—even though local claims can often cost more than international ones.
These findings highlight a mix of confusion and complacency around travel insurance, despite Australians facing extreme weather events, geopolitical tensions, flight cancellations, and other travel disruptions. Overseas mishaps can also lead to significant insurance payouts, underscoring the importance of proper coverage.
The Importance of Understanding Coverage
Hannah Norton, spokesperson for iSelect, said the knowledge gap leaves travellers exposed to potentially costly and stressful situations. She emphasized the role of insurance advisors in highlighting the risks and helping travellers understand why comprehensive coverage is essential.
“Australians like to think of themselves as savvy travellers, but the data shows that many are leaving themselves exposed when it comes to insurance,” Norton said. “Too many view travel insurance as ‘nice to have’ rather than essential. Overlooking it could leave them financially vulnerable if something goes wrong.”
She added: “Travel insurance is designed to protect you when plans go awry. Without understanding what you’re covered for, cancellations, delays, lost luggage, or medical emergencies could result in unexpected costs and stress, creating a false sense of security.”
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