Around 35 per cent of Australians purchase travel insurance policies seven days before departure and five per cent take out coverage with only hours to spare. With the busy festive travel period now underway, this last-minute travel insurance risk could see travellers lose vital coverage for any delays or disruptions.
New RACV research shows travellers are increasingly leaving travel insurance until just before departure, reporting a spike in policy purchases within 48 hours of departure and last-minute travel insurance risk.
With Melbourne Airport expecting to handle more than 4.8 million passengers during the December-January travel period, the issue of last-minute insurance purchases has never been more critical for holidaymakers.
RACV Leisure EGM Craig Peachey said: “With Melbourne expecting nearly five million passengers this summer, the odds of travel disruptions affecting someone increase significantly.”
He said the last-minute policy purchase approach, while convenient, often stems from a combination of procrastination, misconceptions about coverage and budget prioritisation.
Travellers often leave insurance as a last-minute consideration, underestimating risk with a “it won’t happen to me” mindset, and feeling confused over coverage complexity until forced to make a quick decision.
“A significant portion of travellers don’t understand that many travel insurance benefits, particularly coverage for cancellations due to unforeseen circumstances, only apply when purchased shortly after booking their trip,” Peachey said.
“RACV is aiming to make travellers’ lives a little easier to get cover in 10 minutes – even if they’re on the way to the airport.”
For more info, head to racv.com.au
KARRYON UNPACKS: As the festive travel period peaks, RACV’s findings highlight a critical gap in traveller awareness and a major education opportunity for travel advisors to reinforce the value of early policy purchases to avoid the risk of last-minute travel insurance.
