Big mistake when buying travel insurance

If there’s anything the recent surge in travel chaos has taught us, it’s the need of one very important thing — but there’s a mistake many of us make.

The last thing you want is having to fork out a hefty bill for lost luggage, cancelled flights or medical fees while you’re travelling.

If there’s anything Covid and the recent surge in travel chaos has taught us, it’s the importance of travel insurance.

There’s been some pretty chaotic scenes at airports around the world in the past six months post-pandemic — with flight delays and cancellations and one of the more frequent issues, lost luggage.

However, according to Gary Hunter, travel insurance expert at Australian comparison site Finder, while it is super frustrating, it’s also something travel insurance can cover.

Want to stream your news? Flash lets you stream 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022 >

Travelling is all fun and games until you cop a hefty bill – whether it be for misplaced luggage, cancelled flights, or a medical reason. Picture: iStock

But it’s not just that. He said anything can go wrong, such as accidents and health-related issues, which is where travel insurance can play a big role.

“Healthcare costs overseas will come at a high price, and that’s certainly not something you want to stress about on holiday,” Mr Hunter told news.com.au.

“A basic insurance policy can cost anywhere between $10 and $20 per day,” Mr Hunter said.

“You can get a cheaper rate by increasing your excess, but you’ll end up paying more if you need to make a claim. For example, if you lose your luggage, you’ll be required to pay the excess when putting through a claim.”

A travel expert said one of the biggest mistakes Aussies make is leaving to buy their travel insurance too late, revealing when the best time to buy cover is. Picture: iStock

Best time to buy travel insurance

All too often one of the biggest mistakes Aussies make is leaving it to last minute to purchase cover.

“You should buy travel insurance as soon as possible after booking your trip,” Mr Hunter advises. “That way, if something happens before you go – for example you get sick, injured or a close family member falls ill – you’ll be covered for cancellation costs.

“Additionally. a few providers won’t accept Covid-related claims within 21 days of your trip.”

One of the most common questions people ask if “which is the right cover for me?” — to which Mr Hunter said: “A basic insurance policy can cost anywhere between $10 and $20 per day and will cover you for unlimited medical expenses if you’re travelling overseas.”

But he warned “not much else”.

If you end up in hospital in the US, you’re looking at $1200 per night – as opposed to paying $28 per day with travel insurance. Picture: iStock

“For example, it typically doesn’t cover you for cancellation costs or lost luggage. You’ll need a more comprehensive policy if you want cover for this,” he said.

“There are over 20 travel insurers that include cover for Covid-related expenses now. This can include paying for medical expenses, trip rearrangement or cancellations, and additional accommodation.”

He said as an example, it can cover you if you catch Covid while on your trip and you need to reschedule your flight home and pay for additional accommodation.

An expert has warned why it is important to take out travel insurance – especially if you end up in hospital. Picture: iStock

It comes as Australian woman Michelle Armenis urged fellow Aussies to take out travel insurance and check their policy “carefully” after her husband Babis had a stroke and a serious fall while in Greece.

Babis was in the country visiting his elderly mother when he suddenly ended up in a hospital in Corfu needing to have brain surgery.

His son Nik told Sky News he managed to get his dad back home to Australia but at a “huge expense” and the family now needs help financially as the bills “keep climbing”.

Hospital bed fees

The United States is known for having expensive healthcare and because of that it pushes up the cost for tourists who aren’t covered by an insurance plan and end up in hospital.

According to Finder, Aussies can fork out a staggering $1,279 on average for a stay in a New York hospital bed, which is 45 times the cost of an insurance policy.

The figures were based on those aged 30 with Finder analysing the price of a hospital bed against a travel insurance policy for a one-week trip in July.

It found a stark price difference between the two, revealing that staying in hospital is 44 times more expensive on average than a travel insurance policy across Australians’ top 10 travel destinations.