Australians continue to roll the dice on travel insurance with 20 per cent of travellers taking off overseas without cover and putting themselves at health and financial risk as policy prices also rose by an average of six per cent in the last 12 months.
The latest Canstar research also shows more than half of Aussies (51%) take out travel insurance at the time of booking, while 28 per cent purchase a policy at least one month before travelling.
Worryingly, nine per cent delayed cover until the week of their trip or even after their holiday had begun.
Travel agents can advise clients to take out comprehensive travel insurance at the same time they book flights and accommodation to cover for any unexpected hiccups that may affect your trip.
If unexpected circumstances mean clients don’t end up taking their trip, they may be able to make a claim and recover any losses, depending on the cancellation reason.
A fair deal for flyers
Canstar’s 2024 Travel Insurance Star Ratings & Awards also found overseas travel premiums have increased by up to seven per cent for older Aussies and up to six per cent for families.
Earlier this year, research released by the Department of Foreign Affairs and Trade (DFAT) and the Insurance Council of Australia (ICA) revealed 16 per cent of Australians are travelling abroad without cover. One in seven (15 per cent) of those polled said they couldn’t afford travel insurance.
Despite the increase in travel insurance premiums, Canstar analysis shows travellers can cut comprehensive insurance coverage by up to AUD$136 per policy by comparing options.
However, it cautions against reducing the excess or opting for a lower coverage level to cut costs as basic travel insurance typically does not cover cancellations, travel delays and lost luggage.
Canstar Data Insights Director Sally Tindall said: “Insurance might be the last thing you want to shell out money for when booking a holiday, but it will be the first thing you thank yourself for having if you do need to make a claim.”
