Are you really covered?

Posted 24 July, 2024 RAA Travel

Reading the fine print of a travel insurance policy is unlikely to be the highlight of your day.

So, it’s no surprise less than one in five travellers spend time learning what their travel insurance does and doesn’t cover, according to a recent Department of Foreign Affairs and Trade survey.

If you haven’t read the product disclosure statement (PDS), you might not understand the extent of your policy’s coverage until you make a claim. This is usually a stressful time, and it can be devastating to find out you’re not covered for expensive hospital treatment or a pre-existing medical condition.

Taking the time to understand your cover could save you anxiety, confusion and distress, as well as significant financial loss, if your claim is rejected.

Cover to suit

When choosing a policy, consider which option has the cover to suit your personal needs, especially if you have any pre-existing medical conditions. Check if these are covered by the policy and if there are any restrictions.

If you’re travelling to countries like the United States where medical treatment and hospitalisation can be very expensive, consider getting sufficient cover for these potential costs.

Check that the policy covers all the activities you plan to do while travelling. Whether its snow-skiing, scuba diving or driving in a foreign country, it’s important to know if these activities are covered automatically by your policy, or if they’re available as add-ons. 

Other considerations include coverage for flight cancellations, lost luggage, public liability, loss of income and travelling while pregnant.

‘Complimentary’ travel insurance

Chances are your credit card comes with some pretty good travel perks, like bonus frequent flyer points, and even complimentary travel insurance. But the devil may be in the detail when it comes to the extent of your cover. When considering this type of policy for your next holiday, keep in mind:

• Activating the policy usually requires a minimum spend on the credit card. This may include purchasing travel-related products, like return flight tickets.
• There may be restrictions on pre-existing medical conditions.
• The policy might not cover all the activities you’re planning.

It’s also important to check if the card holder’s family members are covered and whether the policy covers the full length of the trip.

Be prepared

While researching and comparing travel insurance policies isn’t as exciting as booking flights, accommodation and attractions, it could end up being the most important decision for your trip.

This insurance is issued by Tokio Marine & Nichido Fire Insurance Co., Ltd ABN 80 000 438 291 (Tokio Marine), AFSL 246548. Royal Automobile Association of South Australia Incorporated acts as agent for Tokio Marine and may receive a commission which is a percentage of the premium paid and may also receive a portion of the underwriting profit. Consider the Combined Financial Services Guide and Product Disclosure Statement, and Target Market Determination, available on the RAA website when deciding whether to purchase this product. Terms and Conditions, Limits and Sublimits apply.