Travellers are risking cancellation costs by delaying taking insurance

RAA Travel data shows cancellations are a big part of insurance claims but many people are delaying taking out policies until close to departure time.

HOLIDAY-makers are risking the cost of dream getaways by delaying travel insurance until the eve of their departure, new data shows.

RAA Travel figures, based on 2500 clients, reveal 30 per cent of insurance claims are for pre-holiday cancellations – airfares and accommodation – as a result of illness.

However, only 32 per cent of customers booked insurance on the same day they booked their travel.

Another 47 per cent waited up to a month before securing cover, while 21 per cent delayed it even longer.

RAA Travel spokeswoman Mandy Nasuti yesterday advised holiday-makers to arrange insurance at the same time they booked their getaways and to ensure it includes cancellation cover.

“It is important to ensure you have cancellation cover at the same time you make purchases such as airfares, train travel and accommodation,’’ Ms Nasuti said.

“It’s the same principle as insuring your car as soon as you buy it, to make sure you are covered for any unforeseen circumstances.

“The last thing you would want is to cancel your holiday but still have to pay for it.’’

Ms Nasuti said the cost of travel insurance was typically not dependent on when it is purchased.

“How far in advance of your trip you decide to take out insurance shouldn’t impact on the premium,’’ she said.

RAA member Paul Wallace was able to make a claim after cancelling a holiday to Spain.

RAA member Paul Wallace, 65, of Clarence Park is glad he has always taken out insurance at the same time he books his travels.

Last year he had to cancel a month-long holiday in Spain, three months before he was due to fly out with daughter Caitlyn.

He was able to claim for the cancellation costs associated with his flights and accommodation.

“I always take insurance when I make my bookings because you don’t know what may happen before you go on holiday,’’ he said.

“I was relieved I’d taken out insurance in this case because otherwise I would have been out of pocket by a few thousand dollars. Taking it out when you book gives you peace of mind.’’

RAA Travel’s biggest insurance claim was for $173,000, for a 61-year-old first time overseas traveller who suffered a brain inflammation/infection in Hong Kong and was in hospital for 37 days.

The costs included hospital stay and flights home.