A new report has revealed that one in five Australian travellers are heading overseas without travel insurance, potentially leaving themselves financially vulnerable in the event of medical emergencies or other mishaps.
The research, conducted by Canstar, surveyed 2,481 Australian adults and found significant delays in when travellers secure coverage, with some waiting until after they’ve left for their trip.
Among those who purchase travel insurance, the majority (51%) do so when booking their trip, but 28% delay until closer to departure, and 9% wait until the week of travel or later.
When Australians purchase travel insurance:
The findings highlighted the risks many travellers take by postponing their insurance, leaving little room to address unexpected issues, such as cancellations or medical costs incurred before departure.
The cost of travel insurance continues to climb, reflecting broader economic conditions.
Canstar’s 2024 Travel Insurance Star Ratings showed that average premiums for international travel have increased by 6% overall, with older travellers seeing the steepest hikes.
The average international premium now stands at $317, compared to $299 the previous year.
Sally Tindall, Canstar’s data insights director, encouraged travellers to prioritise insurance to avoid costly surprises.
“If you need medical help overseas and you’re not in one of the 11 countries that have reciprocal health care agreements with Australia, you’ll be the one footing the bill – unless you have insurance,” she said.
She advised travellers to consider purchasing insurance at the time of booking flights or accommodation to cover potential cancellations or emergencies that arise before departure.
“Travellers booking their holiday months out from the departure date should consider taking out comprehensive insurance at the same time they book big ticket items such as flights and accommodation. That way, if unexpected circumstances mean you don’t end up taking the trip, you may be able to make a claim and recover your losses – although it will depend on why you cancelled,” Tindall said.
Recent safety concerns have underscored the necessity of travel insurance. In Fiji, four Australians were hospitalised after allegedly consuming spiked drinks at a resort, raising questions about preparedness for medical emergencies abroad.
In an exclusive report from Sky News, Dean Long, CEO of the Australian Travel Industry Association (ATIA), emphasised the role of insurance in such cases.
“One of the important elements that this brings up is the most important thing… if you can’t afford travel insurance then you can’t afford to travel and these instances really do re-enforce the need to take travel insurance out,” he said, as reported by Sky News.
The Department of Foreign Affairs and Trade (DFAT) also issued updated travel advisories following the Fiji incident, warning Australians about the risks of drink spiking and urging caution when consuming alcohol abroad.
