Covid-19 travel insurance policies: Big catch Australians must know

Covid-19 has prompted more Aussies to take up travel insurance then ever before - but experts warn tourists may not find the financial protection they are seeking.

Concern about snap border closures and lockdowns is prompting more Aussies to take out Covid travel insurance for domestic holidays – but this is exactly what a policy won’t cover you for, industry experts warn.

“A lot of people don’t realise that border closures and travel restrictions are not something that’s covered by travel insurance, but that may be one of the reasons why people are actually purchasing travel insurance,” Compare Travel Insurance managing director Natalie Ball said.

Pre-pandemic, an estimated 15 per cent of Aussie travellers took out travel insurance when holidaying domestically, but the uncertainty of the past two years has sent demand skyrocketing. Ms Ball said travel insurance queries for domestic trips were up 126 per cent on 2019 levels, while queries for international trips were now at 23 per cent of their pre-pandemic levels.

Ms Ball said the cost of premiums had gone up about 25 per cent across the board, but it had become more important than ever for holiday-makers to look at factors other than price when selecting a policy.

“Think about your trip rather than going for the cheapest policy in the market,” she said. “It’s about whether that particular policy suits your holiday.”

Director of Compare Travel Insurance, Natalie Ball. Picture: Supplied

This may involve a change from your usual travel insurance provider, as offerings had changed, Ms Ball warned.

“People are starting to book cruises again, and if you’re going on a cruise, you definitely need to make sure you’re covered for cruising. There are a lot of insurers who are not currently covering multi night cruises because of the travel environment and Covid. It’s more difficult to find, but there are some out there,” Ms Ball said.

One Cover Travel Insurance and Zoom Travel Insurance were two companies that were currently offering specific cover for cruises, she said.

A spokesperson for the Insurance Council said no insurer was currently offering protection for domestic or international border closures, and this was unlikely to change in future. Visiting a country subject to ‘Do Not Travel’ advice on the federal government’s smartraveller.com.au website would typically nullify any Covid-related claims, the spokesperson warned.

Cruising is set to resume in 2022, but not many insurers are currently offering protection.

While a person’s vaccination status may not affect their premium, it could make a difference in the event of a claim.

“Currently [insurers] won’t refuse cover to someone who isn’t vaccinated. However, some insurers expressly state there is no Covid cover if the claim is for a person who is not fully vaccinated,” the spokesperson said.

The advice to consumers remains the same as always: read the fine print, as all insurance products are different.

Medibank’s offering, for example, provides cover for the chance you’ll get Covid-19 before a trip and thus be unable to go. The product will also honour a Covid claim if you’re in a country that suddenly gets slapped with a ‘Do Not Travel’ warning on smarttraveller.com.au.

“Travel insurance is essential for all the reasons it was pre-Covid, providing protection for a number of unexpected situations,” the Industry Council spokepserson said.

“Research is the key to finding the best travel insurance policy for your individual trip and personal situation. Spend time reading the inclusions, exclusions and the Product Disclosure Statement.”

Originally published as Covid-19 travel insurance policies: Big catch Australians must know