Aussies booking cheap overseas flights are being warned to look beyond the airfare and check the risk attached to their route, with some travellers transiting through regions subject to Australian Government ‘Do Not Travel’ advice.
According to iSelect, those warnings can affect how insurers assess claims, particularly where incidents occur in destinations or transit points covered by higher-risk travel advice.
A study by the comparison service found securing the lowest price is the top priority for 31 per cent of Australians when booking flights, at the same time as global instability pushes more destinations into high-risk and “Do Not Travel” categories that can trigger tighter travel insurance exclusions.
What are travellers prioritising when they book?
After price, the top flight booking priorities are direct or shortest travel time (24 per cent) and convenient departure or arrival times (16 per cent), the research found.
Cost-saving behaviour extends well beyond the fare. Travellers say they are booking in advance to secure better prices (35 per cent), opting to travel domestically instead of overseas (27 per cent) and staying with friends and family (25 per cent).
Why advice levels matter for insurance
“We understand Aussies are highly cost-conscious at the point of booking, but many are not factoring in how a destination’s advice level can impact travel insurance coverage, particularly where warnings escalate after bookings are made,” iSelect’s Sophie Ryan said.
“We’re seeing many insurers continue to align coverage decisions with Australian Government travel advice, meaning ‘Do Not Travel’ locations can trigger claim exclusions relating to incidents occurring in such regions.”
Ryan said risk classifications have been shifting more frequently in response to global conflict, a dynamic Karryon has been tracking in its rolling updates on Middle East travel impacts for Australian travellers.
“Most travel insurers rely on the Australian Government’s Smartraveller advice when assessing risk, so if a country is issued a ‘Do Not Travel’ warning, policies may change as insurers adjust their coverage accordingly,” she said.
When should travellers buy cover?
Ryan said one of the biggest misconceptions about travel insurance is that it covers everything, when that is not always the case if something goes wrong.
“For those looking to travel overseas during an unpredictable geopolitical environment, travellers should buy travel insurance as soon as they’ve booked any part of their trip, whether it’s flights, accommodation or activities,” she said.
“Be honest and upfront with your insurer and always read the fine print. If you’ve already purchased a policy before a destination is affected by a major event or upgraded travel warning, you may retain some level of cover.”
KARRYON UNPACKS: With Smartraveller advice levels shifting more often and insurers aligning cover to them, the gap between a cheap fare and a valid claim is widening. It’s a reminder of the value a travel advisor adds that a booking engine doesn’t: knowing how a destination’s advice level intersects with the fine print before the client departs.
