Australians travelling across Europe and the United States this summer are filing increasingly expensive travel insurance claims, according to insurer 1Cover. Since 1 May, the company has paid out $4.5 million in claims, with some of the highest costs tied to medical emergencies abroad.
In Europe, incidents included a hospital stay in Switzerland costing AU$130,579, a $34,383 cardiac procedure in Italy, and a $19,600 road accident in Macedonia. Trip cancellations and disruptions also carried hefty price tags, such as an $18,344 claim for a cancelled European cruise.
1Cover Chief Operating Officer Natalie Ball said the surge shows how even routine travel mishaps can escalate into major expenses. “So far, this European summer, some of our most significant claims have involved run-of-the-mill accidents, but also unexpected illness and cancellations, which can be just as costly,” she explained.
Claims linked to US destinations, particularly Hawaii, are also rising sharply. Ball noted that three of 1Cover’s most expensive recent cases—each exceeding $1 million—came from Hawaii, all tied to serious medical emergencies. “These cases often include extended hospitalisation, rehabilitation, and medical escorts home. Without insurance, the costs would be unmanageable,” she said.
Looking ahead, the insurer expects high-value claims to continue into 2025 and early 2026, with demand driven by school holidays, summer trips, and ski holidays in destinations such as Japan. Ball underscored the importance of cover: “When it comes to overseas holidays, the greatest cost may not be booking the holiday, but dealing with the unexpected.”
The trend is not unique to Australia. Earlier this month, the Association of British Insurers reported its members paid out £472 million across more than 500,000 travel insurance claims in 2024.
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